5 most scandalous fraud cases of 2024

What makes a fraud most scandalous? When Association of Certified Fraud Examiners (ACFE) staff get together to discuss the biggest financial crime stories of the year for inclusion in our most scandalous frauds list, we consider three factors: amount of money lost, lives affected and relevance to the anti-fraud profession. It’s that last factor — relevance to the anti-fraud profession — that’s especially significant to us. Consider the landmark cases we’re still talking about today. Enron. Theranos. 1MDB. Wirecard. They live in infamy not just for the billions in losses they caused and the havoc they wreaked on people’s lives, but also for the important anti-fraud lessons we’re still learning from them.

This year’s most scandalous frauds incurred billions in losses and deeply impacted many lives. They also focus our attention on what goes wrong when organizations eschew vital anti-fraud fundamentals. Whether it’s defrauding government regulators or failing to employ proper cybersecurity protocols, many of the cases on this year’s list spotlight the severe consequences of acting unethically or lacking solid anti-fraud controls.

Fraudsters work year-round to perpetrate their schemes; we work year-round tracking and compiling those fraud cases as they’re reported in the news. We tap the expertise of our Advisory Council — a dedicated group of ACFE members who advise us on numerous anti-fraud matters — to vote on the most scandalous cases. Here are the most scandalous fraud cases of 2024.

01/ Grounded

At 6:20 a.m. on Oct. 29, 2018, Lion Air flight 610 ascended above Jakarta on its way to Pangkal Pinang, Indonesia. After 13 minutes, the plane carrying 189 passengers and crew plummeted into the sea, killing everyone on board. Just five months later, on March 10, 2019, Ethiopian Airlines Flight 302 crashed shortly after takeoff near Ejere, Ethiopia. All 157 passengers and crew perished. Following the Ethiopian crash, international regulators grounded all Boeing 737 Max jets — the plane involved in both fatal crashes. Subsequent investigations revealed that the culprit was a faulty flight control system on both jets. Boeing lost $20 billion after regulators grounded the jets, its CEO was ousted, and the U.S. government would charge it with fraud for concealing problems with the flight control system implicated in the deaths of 346 people. (See “Boeing committed ‘the deadliest corporate crime in US history’ and should be fined $24 billion, victims’ families say,” by Jordan Valinsky, CNN, June 19, 2024; “Boeing 737 MAX crash families say planemaker should face much higher fine,” by David Shepardson, Reuters, July 31, 2024; “Boeing to plead guilty to fraud in US probe of fatal 737 MAX crashes,” by Chris Prentice, Mike Spector and David Shepardson, Reuters, July 8, 2024; and “As Boeing Agrees to Plead Guilty to Fraud, a Look Back at What Led Up to the 737 Max Crashes That Killed 346 People,” by Patrice Taddonio, PBS Frontline, July 8, 2024.)

In July 2024, Boeing, one of the largest aviation companies in the world, struck a plea deal with the U.S. Department of Justice (DOJ), admitting that it had committed fraud by lying to U.S. regulators about the safety of the Maneuvering Characteristics Augmentation System (MCAS) software on its Max jets, a feature designed to automatically push the airplane’s nose down in certain conditions. According to Indonesian investigators, Lion Air pilots struggled for control of the plane when a faulty MCAS sensor pushed its nose down. Ethiopian investigators reported a similar finding that pilots were unable to level the nose of the plane when the system pushed it down. (See “Key events in the troubled history of the Boeing 737 Max,” The Associated Press, July 8, 2024 and “Boeing to plead guilty to fraud in US probe of fatal 737 MAX crashes.”)

However, a federal judge rejected Boeing’s deal with the DOJ in December 2024. The deal would’ve required Boeing to pay a fine of $243.6 million and spend $455 million to boost its safety and compliance programs. The families of the Max jet crash victims had urged the judge to reject the deal because they didn’t think the fine was adequate to address the tragedies. (See “Boeing 737 MAX crash families say planemaker should face much higher fine” and “US judge rejects Boeing plea deal in fatal crashes,” Reuters, Dec. 5, 2024.)

Boeing’s 2024 deal wasn’t its first with the U.S. government in connection with Max jet crashes. In 2021, Boeing entered into a deferred prosecution agreement with the DOJ to resolve a criminal charge of conspiracy to defraud the Federal Aviation Administration (FAA) and agreed to pay a criminal fine of $2.5 billion. According to court documents, Boeing admitted that two of its technical pilots concealed information about problems with MCAS, which caused the FAA to publish a document lacking information about the new flight control system. (See “Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 Billion,” U.S. Department of Justice press release, Jan. 7, 2021.)

“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” U.S. Acting Assistant Attorney General David P. Burns said in a 2021 statement. (See “Boeing Charged with 737 Max Fraud Conspiracy and Agrees to Pay over $2.5 Billion.”)

The DOJ was reportedly set to dismiss the 2021 fraud charge against Boeing, but then a panel covering an unused exit blew off a 737 Max jet during a January 2024 Alaska Airlines flight. No one was injured, but U.S. prosecutors decided that Boeing had violated its 2021 deal and failed to make the promised changes to detect and prevent safety violations. (See “U.S. prosecutors file details of Boeing’s plea deal related to 737 Max crashes,” by David Koenig, The Associated Press, PBS News, July 24, 2024.)

Boeing and the DOJ will now have to update the court on how they plan to proceed in the case. Only one person — a former technical pilot — was charged in connection with the Boeing fraud but was acquitted in 2022. (See “Boeing to plead guilty to fraud in US probe of fatal 737 MAX crashes,” by Chris Prentice, Mike Spector and David Shepardson, Reuters, July 8, 2024.) /01

02/ A death sentence for fraud

Troung My Lan made a name for herself as a real estate tycoon and key player in Vietnam’s financial services industry. But in April, she made headlines as a convicted fraudster sentenced to death for the largest financial fraud in Vietnam’s history.

Lan and her family established Van Thinh Phat in 1992, and the company went on to become the Southeast Asian nation’s largest real estate firm as it developed numerous luxury residential buildings, offices and hotels. Lan furthered her tycoon status in 2011 when she orchestrated a merger between Saigon Joint Stock Commercial Bank (SCB) and two other lenders. It was this business venture that Vietnamese prosecutors say allowed Lan to carry out a multibillion-dollar embezzlement scheme in which she tapped the newly formed SCB for cash and approved thousands of loans to shell companies. (See “Vietnam death row tycoon’s appeal begins,” by Agence France-Presse, Inquirer.net, Nov. 4, 2024; “Vietnamese real estate tycoon sentenced to life for billions in fraud in government graft crackdown,” by Hau Dinh and David Rising, The Associated Press, Oct. 17, 2024; and “Vietnam sentences real estate tycoon to death in its largest-ever fraud case,” by The Associated Press, NPR, April 12, 2024.)

Lan was chair of Van Thinh Phat when she was arrested in October 2022 as part of a government crackdown on corruption. The Ho Chi Minh City court found her guilty in April 2024 of embezzling $12.5 billion from SCB. According to prosecutors, tens of thousands of investors lost money in the scheme; damages amounted to $27 billion, almost 6% of Vietnam’s 2023 gross domestic product. The court ordered Lan to pay almost all the damages and sentenced her to death by lethal injection. (See “Vietnam death row tycoon’s appeal begins” and “Vietnamese real estate tycoon sentenced to life for billions in fraud in government graft crackdown,” by Hau Dinh and David Rising, The Associated Press, Oct. 17, 2024.)

According to court documents, between 2012 and 2022, Lan fraudulently withdrew money from SCB using 1,300 fake loan applications. The 2,500 loans she approved resulted in a $27 billion loss to investors. The court also found that she’d siphoned off $18 billion and used companies she controlled to transfer more than $4.5 billion in and out of Vietnam. Lan is also accused of bribing officials, one of whom was sentenced to life in prison for accepting $5.2 million in bribes. (See “Vietnam death row tycoon’s appeal begins;” “Vietnamese real estate tycoon sentenced to life for billions in fraud in government graft crackdown;” “Vietnam sentences real estate tycoon to death in its largest-ever fraud case;” and “What to know about the real estate tycoon sentenced to death in Vietnam’s largest fraud case,” by Aniruddha Ghosal, The Associated Press, April 12, 2024.)

Eighty-five accomplices were charged with bribery, abuse of power, appropriation and violating banking laws. Lan’s niece, Truong Hue Van, chief executive of Van Thinh Phat, was sentenced to 17 years. Lan’s husband, Eric Chu Nap-kee, was sentenced to nine years. Thirty-three co-defendants received sentences ranging from two to 23 years. (See “Vietnam death row tycoon’s appeal begins” and “Vietnamese real estate tycoon sentenced to life for billions in fraud in government graft crackdown.”)

In explaining its death sentence for Lan, the court said that she orchestrated “a criminal enterprise that had serious consequences with no possibility of the money being recovered.”  Vietnam’s real estate economy was severely affected by the fraud, with approximately 1,300 property firms withdrawing from the market in 2023, and many rental properties sit empty. (See “Vietnam sentences real estate tycoon to death in its largest-ever fraud case.”)

Lan appealed her death sentence in November. More than 100 lawyers have reviewed her case in an effort to reduce her sentence and the sentences of 47 other defendants.In December the court said it might commute her sentences if Lan reimburses $11 billion. (See “Vietnam death row tycoon’s appeal begins;” “Vietnamese real estate tycoon sentenced to life for billions in fraud in government graft crackdown;” “Vietnam sentences real estate tycoon to death in its largest-ever fraud case;” and “Vietnam court may commute tycoon’s death sentences if she repays $11 billion,” by Aniruddha Ghosal, The Associated Press, Dec. 3, 2024. ) /02

03/ Fraud stimulates drug shortage

During the COVID-19 pandemic, the U.S. government relaxed restrictions for online prescriptions so that patients could get their medications virtually. Those relaxed regulations made it easier for patients to obtain necessary medical treatment during the pandemic but also made it easier for unscrupulous health care workers to commit fraud. The U.S. Department of Justice says that telemedicine purveyors took advantage of those relaxed restrictions to illegally distribute the attention-deficit/hyperactivity disorder (ADHD) medication Adderall that contributed to severe shortages of the drug. In June, the DOJ carried out its first drug distribution prosecution related to a telemedicine company as part of a nationwide bust in which 193 people were arrested for $2.75 billion in health care fraud schemes.

(See “Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme,” DOJ press release, June 13, 2024; “US charges 193 people in $2.75 billion health care fraud bust,” Reuters, June 27, 2024; and “A.D.H.D. Startup Executives Accused of $100 Million Fraud in Adderall Scheme,” by Dani Blum, The New York Times, updated June 18, 2024.)

Two people arrested in the bust were Ruthia He, founder and chief executive of telemedicine company Done Global Inc., and David Brody, the company’s president. Both were charged with conspiring to commit health care fraud and submitting false claims for reimbursement for Adderall and other stimulants. They’re accused of illegally distributing as many as 40 million Adderall pills, generating $100 million in revenue for the company. (See “Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme.”)

According to the DOJ, Done’s executives spent millions on deceptive advertisements that targeted people seeking medication on social media, showing the ease with which patients could receive an ADHD diagnosis and Adderall. They’re also accused of structuring Done’s operations to facilitate distribution of large quantities of pills. Patients completed a short assessment to determine if they needed treatment and were connected virtually with a medical provider for a diagnosis and prescription. But Done allegedly limited prescribers’ access to information and instructed providers to prescribe pills even when patients didn’t qualify for them. The DOJ alleges that Done executives tried to promote as many prescriptions as possible by limiting patient consultations to 30 minutes. (See “Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme” and “A.D.H.D. Startup Executives Accused of $100 Million Fraud in Adderall Scheme.”)

He admitted that her company refused to pay prescribers for medical visits and consultations or follow-up time with patients and paid based on the number of patients receiving prescriptions. He and Brody allegedly continued the scheme even after learning that some Done patients had overdosed and died. The DOJ claims that they lied to pharmacies, Medicare and Medicaid about their prescription practices and policies so that they could more easily get prescriptions. As a result, government health care programs Medicare and Medicaid and commercial insurers paid out an excess of $14 million. The DOJ also charged He and Brody with obstruction of justice, alleging that the pair deleted documents and failed to provide others in response to a subpoena. In total, seven Done Global employees were charged with illegally distributing Adderall, including one nurse practitioner who allegedly prescribed 1.5 million pills to patients without any interaction. The government also seized $231 million in cash, along with luxury vehicles, gold and other assets. (See “Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme.”)

Additionally, the DOJ busted 36 defendants accused of submitting more than $1.1 billion in false claims to Medicare. Some of the schemes included fraud related to treatments for drug and alcohol abuse, with one defendant who allegedly billed Medicaid for nonexistent treatment. (See “US charges 193 people in $2.75 billion health care fraud bust.”)

In 2022, the FDA issued a formal notice about shortages in prescription stimulants. According to The New York Times, the June arrests could further affect people’s ability to get medications as approximately 50,000 people rely on Done and other telehealth platforms for their medications. (See “Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme;” “A.D.H.D. Startup Executives Accused of $100 Million Fraud in Adderall Scheme;” and “US charges 193 people in $2.75 billion health care fraud bust.”) /03

04/ No longer ‘grande’

Chinese developer Evergrande was at its pinnacle in 2018, having been listed as the most valuable real estate company in the world. But in 2024, the property developer’s reputation crumbled when Chinese regulators accused it of fabricating sales figures that inflated its revenues by $78 billion in 2019 and 2020, despite audits to the contrary conducted by PricewaterhouseCoopers (PwC). The company defaulted on its $300 billion debt in 2021.

Evergrande’s case marks a significant chapter in China’s financial history, highlighting critical failures in auditing practices and corporate governance. The scandal has reverberated through domestic and global markets, affecting investor confidence in Chinese corporate governance and financial reporting standards. (See “Biggest fraud in Chinese history? Beijing accuses Evergrande of inflating revenues by $78 billion,” by Laura He, CNN, March 19, 2024 and “Here’s what to know about the collapse of China’s Evergrande property developer,” by Scott Neuman, NPR, Jan. 30, 2024.)

Evergrande allegedly used falsified financial reports to secure financing through bond sales without proper disclosure of risks or accurate financial health. Adding fuel to the fire, an anonymous letter titled “Who dragged PwC into the fire pit of Evergrande” began making the rounds on Chinese social media in April 2024. (See “Biggest fraud in Chinese history? Beijing accuses Evergrande of inflating revenues by $78 billion,” by Laura He, CNN, March 19, 2024 and “China Evergrande: PwC refutes letter claiming fraud tied to indebted developer, vows to investigate ‘fabricated’ claims,” by Yuke Xie, South China Morning Post, April 16, 2024.) The letter alleged that PwC’s internal controls were inadequate and pointed to unethical conduct by senior PwC leaders in Mainland China and Hong Kong. The letter claimed PwC executives avoided regulatory investigations by citing confidentiality concerns related to Mainland China’s jurisdiction. (See “The Importance of IS Audit: Lessons Learned from the Evergrande Crisis,” by Rui Feng Isaac Lee, ISACA, Oct. 11, 2024.)

Following an eight-month investigation, the China Securities Regulatory Commission (CSRC) hit Evergrande’s main unit, Hengda Real Estate, with a 4.175-billion-yuan ($580 million) fine. Founder Hui Ka Yan was fined 47 million yuan ($6.5 million) and barred for life from securities markets. Former chief executive Xia Haijun received a $2 million fine and a ban from financial markets. (See “China Evergrande Founder Accused of Exaggerating Revenue by $78 Billion,” by Alexandra Stevenson, The New York Times, March 19, 2024.) The alleged fraud not only misled investors and creditors but also derailed Evergrande’s debt restructuring efforts, affecting its ability to issue new bonds and ultimately leading to liquidation orders from a Hong Kong court in January 2024. (See “Biggest fraud in Chinese history? Beijing accuses Evergrande of inflating revenues by $78 billion,” by Laura He, CNN, March 19, 2024.)

Hui, once China’s richest man, allegedly instructed staff to “falsely inflate” Hengda’s annual financial results in 2019 and 2020. Reuters reported in September 2024 that Hui was at a detention center in Shenzhen, a city in Guangdong, China. It’s unknown whether Hui has been charged with any crimes. (See “Exclusive: Evergrande Chairman kept in special Shenzhen detention center,” by Clare Jim and Julie Zhu, Reuters, Sept. 13, 2024.) Liquidators are scrutinizing Evergrande’s overall financial position, considering potential restructuring strategies, such as seizing and selling off assets to repay outstanding debts. (See “Evergrande: China property giant and its founder accused of $78bn fraud,” by Mariko Oi, BBC, March 18, 2024.)

In September 2024, the regulatory commission banned PwC’s China unit for six months and imposed a fine of 441 million yuan ($62 million) — the heaviest penalty ever imposed on an international accounting firm in China. PwC faced criticism from the China Ministry of Finance and the China Securities Regulatory Commission (CSRC) for serious lapses in its audit of Evergrande, including drawing false conclusions and failing to maintain “professional skepticism” during the audit, which CSRC said led to the concealment of errors. The CSRC noted that 88% of PwC’s records didn’t accurately reflect the status of Evergrande’s projects, with some projects reported as completed despite being vacant land. “PwC has seriously eroded the basis of law and good faith, and damaged investors’ interest,” the CSRC said in a statement. (See “China fines PwC $62 million for its role in the Evergrande collapse,” Reuters, Sept. 13, 2024.)

The Evergrande debacle raised serious questions about the effectiveness of auditing practices, especially internal controls and the accuracy of financial reporting. The Accounting and Financial Reporting Council (AFRC) of Hong Kong launched an investigation to ensure the integrity of the accounting profession and public confidence in financial markets. (See “Maintaining the Quality of Cross-Border Audit Services,” AFRC press statement, Sept. 13, 2024.) AFRC’s investigation is ongoing and could lead to further legal actions against individuals and firms implicated in the massive fraud. (See “The Importance of IS Audit: Lessons Learned from the Evergrande Crisis,” by Rui Feng Isaac Lee, ISACA, Oct. 11, 2024.) /04

05/ Cyberattacks wreak havoc

In 2024, cyberfraudsters took aim at the U.S. health care system and the Social Security numbers of millions of Americans in attacks against health care tech company Change Healthcare and background check company National Public Data. Both cases made headlines for their scope, sensitive nature of the stolen data, and, in the case of Change Healthcare, the complexities involved in responding to and mitigating the aftermath of multiple breaches.

In February, Change Healthcare, a clearinghouse for insurance claims, suffered two consecutive cyberattacks — first by ALPHV/BlackCat and then by RansomHub — that exposed the protected health information (PHI) of approximately 100 million individuals. RansomHub claimed that it stole 4 terabytes of sensitive data, including information on U.S. military personnel, patient medical records and financial data. It demanded an extortion payment from Change Healthcare to prevent the sale of the stolen data to the highest bidder. UnitedHealth, the largest health insurance company in the U.S. and Change Healthcare’s parent company, paid a $22 million ransom and reported an estimated total loss of $2.87 billion in 2024 due to the breach. (See “Nebraska Sues Change Healthcare Over February Ransomware Attack,” by Steve Alder, The HIPAA Journal, Dec. 17, 2024.)

The hack, attributed to the lack of multifactor authentication on an old server, crippled everyday transactions in hundreds of thousands of hospitals, medical practices and pharmacies nationwide. Change Healthcare handles more than 15 billion transactions annually and processes one-third of all health care claims in the U.S. (See “Lessons From the Change Healthcare Ransomware Attack,” by Genevieve P. Kanter, James R. Rekowski and Joseph T. Kannarkat, JAMA Health Forum, Sept. 20, 2024.) By paralyzing claims processing, the hack disrupted the entire flow of payments across the health care system, blocking insurance claims and delaying reimbursements. As health organizations scrambled to switch payment systems, some faced financial collapse, unable to maintain operations. The economic fallout was significant, especially for facilities in rural areas. (See “Lessons From the Change Healthcare Ransomware Attack,” by Genevieve P. Kanter, James R. Rekowski and Joseph T. Kannarkat, JAMA Health Forum, Sept. 20, 2024.)

Pennsylvania-based Jefferson Hills Healthcare and Rehabilitation Center cited the cyberattack as a factor in its closure. The center missed payroll and faced regulatory fines. Patients were transferred to nearby facilities to ensure continuity of care. (See “Shut-down Jefferson Hills nursing home blames cyberattack, Pa. Health Department as patients, employees land elsewhere,” by Bob Mayo, WTAE, March 4, 2024.) The Massachusetts health care system lost approximately $24.2 million daily due to the outage. (See “Massachusetts hospitals losing $24M a day from Change Healthcare hack,” by Giles Bruce, Becker’s Hospital Review, March 12, 2024.) In an American Hospital Association survey of 1,000 hospitals, 60% reported revenue losses of $1 million or more per day. (See “AHA survey: Change Healthcare cyberattack having significant disruptions on patient care, hospitals’ finances,” American Hospital Association, March 15, 2024.)

In August, background check company National Public Data (NPD) confirmed that it was the victim of a data breach involving 2.9 billion records, including Social Security numbers, names, addresses, email addresses and phone numbers. The breach, attributed to cyberfraud group USDoD, began in December 2023, with data leaks that exposed the personal information of 270 million people in the U.S., Canada and the U.K. According to a class-action lawsuit filed in Fort Lauderdale, Florida, hackers accessed NPD’s network, stole unencrypted personal information and posted a database with details from 2.9 billion records on the dark web on April 8, 2024, with the intent to sell the information for $3.5 million. (See “National Public Data confirms massive data breach included Social Security numbers,” by Mike Snider, USA Today, Aug. 17, 2024.) In October, Brazilian authorities arrested a 33-year-old man suspected of being USDoD and acting as the intermediary in the NPD theft. The criminal responsible for stealing the data, known only as SXUL, is still at large. (See “The National Public Data breach exposed 270 million users – now the company has filed for bankruptcy,” by Solomon Klappholz, ITPro, Oct. 28, 2024 and “Brazil Arrests ‘USDoD,’ Hacker in FBI Infragard Breach,” KrebsonSecurity, Oct. 18, 2024.)

NPD’s parent company, Jerico Pictures, filed for bankruptcy in late October 2024, citing the breach as the primary factor behind its downfall. NPD faced more than a dozen class-action lawsuits, ongoing investigations from law enforcement and data protection agencies, and significant reputational damage that led to the loss of customers. (See “The National Public Data breach exposed 270 million users – now the company has filed for bankruptcy,” by Solomon Klappholz, ITPro, Oct. 28, 2024.) Compounding its troubles, NPD couldn’t meet its financial and legal obligations, including notifying affected individuals and offering credit monitoring.

The NPD data breach is a reminder of the significant risks to privacy and national security inherent in large-scale databases. NPD aggregated records from multiple global databases, creating a searchable platform with billions of data points. On the Lawfare website, Global Cyber Strategies CEO Justin Sherman writes that the NPD breach raises the issue of meaningful consent or control over personal data. The aggregation and sale of public records online represents a major shift in privacy risk management. Sherman says that stronger federal and state regulations could curb harmful data practices, particularly regarding sensitive information on vulnerable groups, government employees and military personnel. (See “Hard Lessons From the National Public Data Hack,” by Justin Sherman, Lawfare, Aug. 29, 2024.) /05

Dishonorable mentions

The news was rife with audacious schemes for us to choose from in 2024, but not all can make it to the top of the most scandalous list. Here are the cases that we think deserve a dishonorable mention.

Face the (fraudulent) music

U.S. prosecutors charged North Carolina musician Michael Smith with a scheme that exploited digital music platforms, including Spotify, Apple Music and Amazon Music, with fake songs and bands. He reportedly used artificial intelligence to engineer thousands of fake songs with titles like “Zygotic Washstands” and “Zymotechnical” by bogus bands with names like Callous Post, Calorie Scream and Calvinistic Dust. He used bots to stream the songs millions of times. Smith allegedly collected more than $10 million in royalty payments over seven years in his scheme. (See “The Bands and the Fans Were Fake. The $10 Million Was Real.,” by Maia Coleman, The New York Times, Sept. 5, 2024.)

The ‘infinite money glitch’

TikTok users got an important lesson in check fraud when a viral post on the social media platform showed how Chase Bank customers could exploit a technical “glitch” at the banks’ ATMs. The glitch, linked to a banking rule allowing partial withdrawals from deposited checks before they cleared, allowed customers to deposit fake checks for large amounts, withdraw the funds before the checks bounced and keep the money. The “hack” was check fraud, and Chase caught on. The bank blocked affected accounts and referred the incidents to law enforcement. Those who tried the “hack” saw their accounts go negative as the bank reversed the withdrawals. In October, Chase sued customers who exploited the so-called glitch. (See “The Chase ATM ‘glitch’ that went viral is likely check fraud, bank says,” by Fernando Cervantes Jr., USA Today, Sept. 3, 2024 and “JPMorgan Chase is suing customers over ‘infinite money glitch’ ATM scam,” by Alana Wise, NPR, Oct. 29, 2024.)

Up in smoke

JuicyFields looked like a legal business with physical offices, staff and attendance at industry events, but in reality, it was a Ponzi scheme that ripped off investors hoping to get rich off investments related to medical marijuana. In April 2024, a Europol investigation into the scheme culminated in the arrests of nine suspects involved in the scheme. Over 400 law enforcement officers in 11 countries executed arrest warrants and seized millions of euros, cryptocurrency, luxury vehicles and art, and seized or froze real estate assets.

JuicyFields promised its investors annual returns of 100%, and in typical Ponzi fashion, more than 500,000 cannabis investors got their initial returns. But then, like a puff of smoke, JuicyFields disappeared from social media and froze investors’ accounts. Investors lost 645 million euros from the smoky scheme. (See “9 arrests in EUR 645 million JuicyFields investment scam case,” Europol, April 12, 2024.)

Stolen in translation

It was a big year for baseball icon Shohei Ohtani. The highest-paid player in Major League Baseball (MLB) knocked it out of the park in 2024 in his first season with the Los Angeles Dodgers, hitting 54 homeruns and stealing 59 bases. But when fame and fortune are in play, so too are fraudsters, and Ohtani’s former translator got a little too wrapped up in the game. In June, Ippei Mizuhara pleaded guilty to embezzling millions of dollars from the homerun hero to pay off his sports-gambling debt.

The ex-interpreter admitted in court that he used Ohtani’s password to access the designated hitter’s bank account, then wired a series of $500,000 payments through an illegal bookmaker to various casinos in California. In total, Mizuhara stole more than $16 million from Ohtani over several years. Ohtani was reportedly unaware of Mizuhara’s actions and not in on the scheme. (See “Shohei Ohtani interpreter scandal: Money allegedly stolen was funneled through casinos, per report,” by Mike Axisa, CBS Sports, April 30, 2024; “Shohei Ohtani’s former interpreter pleads guilty to gambling-related theft charges,” by David K. Li, NBC News, June 4, 2024; and “Shohei Ohtani’s 54 homers, 59 stolen bags from 2024,” MLB.com, Sept. 30, 2024. 

Anna Brahce is the editorial assistant of Fraud Magazine. Contact her at ABrahce@ACFE.com.

Crystal Zuzek is the assistant editor of Fraud Magazine. Contact her at CZuzek@ACFE.com.

Jennifer Liebman, CFE, is editor-in-chief of Fraud Magazine. Contact her JLiebman@ACFE.com.

Boeing image credit: Davide Chiarito, iStock Editorial / Getty Images Plus via Getty Images

Evergrande Group in Guangzhou, China image credit: wonry, iStock Unreleased via Getty Images