The Fraud Corner aims to provide LSC grant recipients and staff with detailed information about specific instances of fraud either identified through our investigative program or schemes prevalent across all Offices of Inspector General. The Fraud Corner addresses issues that require immediate action or attention. In many instances the Fraud Corner articles will be issued prior to the completion of an OIG investigation, so that grantees can take appropriate measures to safeguard their programs.
This Legal Services Corporation (LSC) Office of Inspector General (OIG) advisory is intended tohighlight the growing trend of financial fraud committed against the senior citizen population. Seniors are a substantial portion of the United States population and the LSC grantee client base. If affected by the fraud schemes described in this advisory, eligible senior clients may request assistance from your legal aid program. According to the Council on Aging, fraud schemes targeting seniors are…
In light of recent bank failures, the Legal Services Corporation (LSC) Office of Inspector General (OIG) is providing this article, outlining steps to be taken should your grantee funds on deposit exceed the Federal Deposit Insurance Corporation's (FDIC's) $250,000 deposit insurance limit.BackgroundBased on multiple news outlets, Silicon Valley Bank (SVB), the 16th-largest U.S. bank with$210 billion in assets, was closed by California regulators on Friday, March 10, 2023, after depositors…
In a continuing effort to assist grantees and subgrantees in preventing cyber threats, the Office of Inspector General for the Legal Services Corporation is providing the following guidance to assist grantees in protecting personal data from a cyber-attack.Specifically, the OIG is providing this guidance to help enhance the security of electronically shared personally identifiable information (PII). PII includes information such as name, address, social security number, birth date, bank account…
On March 30, 2022, the Federal Bureau of Investigation (FBI) warned local governments and public services of continued ransomware attacks that have resulted in a disruption of operational services, risks to public safety, and financial losses. The FBI urges local governments and public services to take steps to prevent and recover from ransomware attacks. The OIG also believes that ransomware has been and will continue to be a threat to LSC grantees. As a result, the risks identified by the FBI…
Nearly all LSC grantees make use of credit cards and/or purchase cards tied to individual retailers (Sam's Club, Office Depot, and others) to facilitate the process of making recurring or one-time expenditures. Credit cards and purchase cards offer grantees many advantages and allow grantees to make purchases with ease and efficiency.As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and…
The Office of Inspector General (OIG) for the Legal Services Corporation (LSC) is informing you of a recent scam, attempting to obtain $3500 from a grantee client as a "retainer fee."The client received a letter in the mail, purportedly from the grantee. The letter contained the grantee's logo at the top and instructed the client to remit payment to the grantee at a P.O. Box that is not affiliated with the organization. The client's name, address, and case number were included within the letter…
The Office of Inspector General (OIG) has confirmed that the Legal Services Corporation (LSC) and at least two LSC grantees have recently been the target of business email compromise (BEC) scams. These scams resulted in the successful diversion of grant funds and gift cards to cyber-criminals. This threat is ongoing, and we have reason to believe that the cyber-criminals may be targeting additional LSC grantees. We therefore strongly encourage you to take immediate preventative steps, described…
OIG reviews have revealed that many LSC grantees have been using Automated Clearing House (ACH) transactions, in which payments are transferred electronically from one verified bank account to another. Previously, grantees' degree of usage varied considerably from program to program.ACH Transactions (7/20/2020)As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and "best practices" to…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and resources relating to Coronavirus/COVID-19 frauds and scams.OIG Fraud Corner articles issued on March 24, 2020, and April 9, 2020, discussed fraud and purchasing schemes relating to COVID-19 and encouraged grantees to share that information with their employees and clients. This article addresses issues that may arise in conjunction…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and resources relating to Coronavirus/COVID-19 frauds and scams.A March 24, 2020, OIG Fraud Corner article discussed fraud schemes relating to COVID-19 and encouraged grantees to share that information with their clients. This article deals with potential price gouging, price-fixing, and bid-rigging scams that can adversely affect LSC…
As part of its Fraud Corner series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following best practices to aid you in preventing and detecting thefts through third party payment (TPP) services. This article provides guidance on risk factors relating to TPP service thefts and measures employees can take to prevent and detect such thefts.Millions of individuals and businesses use TPP services (or "mobile payment platforms") to make and…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information and resources related to Coronavirus/COVID-19 frauds and scams. Consistent with concerns discussed during a recent LSC COVID-19 LSC/grantee conference call, many of these scams could target LSC grantees and their client communities. The purpose of this Fraud Corner is to increase grantee awareness of possible scams and encourages…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) Grantees with the following information on "best practices" to help them identify and prevent fraudulent activity, and specifically to remind them of the impact nepotism may have on program activities. Nepotism occurs whenever a hiring, contracting or other business decision is made based on a family or other close personal relationship rather than the objective merits of the…
As part of its Fraud Corner series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) grantees with the following information on "best practices" to aid a grantee in preventing and detecting insider threats. The purpose of this article is to provide guidance to grantees on the red flags, or circumstances providing the opportunity for insider threats, and the necessary policies and procedures to prevent and detect insider threats by current and former employees…
As part of its Fraud Corner Series, the Office of Inspector General (OIG) is providing Legal Services Corporation (LSC) Grantees with the following information on "best practices" to potentially aid grantees in identifying or preventing fraudulent activity. The purpose of this article is to remind grantees of check and bank frauds that impact LSC funds and to update previously recommended steps to counteract such attempted frauds with information regarding available technology. In 2012,…
In recent weeks, two cybercrimes involving "phishing" emails targeting LSC program online payroll accounts were reported to the OIG; in these instances, the perpetrators were able to redirect direct deposits from employee payroll accounts to the perpetrator's account. Thieves continue to implement new tactics to trick accounting and human resource officials to update employee direct deposit information, which could lead to the theft of the employee's payroll check. Malicious actors may…
The Legal Services Corporation (LSC), Office of Inspector General (OIG), has been made aware that LSC's main number telephone was compromised in a spoofing scam. According to the Better Business Bureau (BBB)1, spoofing scams are committed by individuals who use technology to modify caller ID information to trick individuals into believing that an incoming call is local, or from someone they know. The scammers engage the individuals in conversation attempting to gain personal identifying…
An OIG investigation led to a former employee of an LSC Grantee agreeing to plead guilty to two counts of theft from a program receiving Federal funds. The former employee was a Program Manager overseeing a grant that utilized the services of volunteers and interns. The investigation found that the Program Manager submitted false travel claims for the volunteers and interns and then deposited the reimbursement checks into the Program Manager's personal bank account. The individuals to whom the…