Phony Web Site Targets Madoff Victims, Claims $1.3B Discovered In Hideout

Victims of Bernard Madoff's Ponzi scheme are being warned of another possible scam – a suspicious Web site claiming $1.3 billion has been recovered from a Madoff hideout in Malaysia and asking investors to submit personal information to obtain their share of the money.

The Madoff Family Album

The "look-alike" site copies the artwork and structural design of the Securities Investor Protection Corp. (SIPC), the group formed by Congress to assist customers of insolvent brokerage firms that has issued the warning. It claims to represent the "International Securities Investor Protection Corp." in what is described as a classic phishing site.

"We know from information provided to us by individuals that this bogus group is already attempting to obtain funds and confidential financial information from investors in the U.S.," SIPC president Stephen Harbeck said. "We intend to use every available means to shut down this illicit operation."

A phishing site is a form of identity theft, Ben Greenbaum, the senior research manager at anti-virus provider Symantec said. Scammers build an authentic-looking Web site to mimic another in hopes of tricking people into providing personal information, like credit card numbers.

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The bogus site, which was located at, has now been disabled and a message reads "This Site is Temporally Closed." The group behind the site claims to be located in Geneva and associated with the United Nations, among other organizations. A voicemail left for a number posted on the site and e-mail were not returned.

"Whoever is behind this scam definitely invested a lot of time and energy stocking the Web site with content to make it look legit," said Alison Southwick, a national spokesperson for the Better Business Bureau, who added that scammers often create look-alike sites to pose as genuine businesses or organizations.

There were, however, various grammatical errors made throughout the fake site, such as failing to properly capitalize "Madoff," forgetting periods, or replacing commas with underscores. Greenbaum said consumers should look out for these types of mistakes as a possible indicator of a phishing scam.

"Often all of the effort put into mimicking the spoofed site does not seem to keep the attackers from making simple spelling and grammatical mistakes," said Greenbaum. He said attackers in these scams "are often known to pick on the desperate, as well as prey on people who have already experienced some form of loss," essentially victimizing them all over again.

Madoff Victims

Images published on the site showed huge stacks of U.S. currency, which were claimed to be recovered in collaboration with Interpol. An Interpol spokesperson did not immediately respond to inquiries by

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