The San Marcos Police have made two arrests in what they say is the largest case of credit card fraud in memory.
The evidence room at the San Marcos Police Department looks like an electronics store.
When police arrested the men, they had 50 credit cards and close to $30,000 in video games, mp3 players, computers and movies.
San Marcos Police Commander Terry Nichols said it took hours to log the evidence.
"When you find that they have over 50 credit cards in their
possession and all the merchandise, we knew this was going to be a much bigger case," he said.
Investigators said Hector Gomez, 37, of Guadalajara, and Gabriel Rivas, 31, of Mexico City, made frequent shopping trips to Central Texas.
During each trip, they'd buy thousands of dollars in electronics.
"[He] buys it with fraudulent credit cards in the United States, ships it to Mexico and then resells it," Nichols said.
Police said the credit cards with the suspects' names on them were phony, but the electronic data on the cards were linked to victims' accounts.
Police are still working to identify those victims.
Experts say there are things you can do to protect yourself from this type of fraud.
First, if you use you card online, make sure the site is secure. When using card at a business, watch your card during the transaction.
Hays County District Attorney Sherri Tibbe said you should check your statements carefully.
"You have to be very vigilant with your information. Constantly check your account. If you see fraudulent activity, cancel the account immediately and notify law enforcement," she said.
By Russell Wilde
Showing posts with label Counterfeit. Show all posts
Showing posts with label Counterfeit. Show all posts
Thursday, July 17, 2008
Wednesday, July 16, 2008
2 Malaysians Nabbed For Credit Card Fraud In Bangkok
Thursday for credit card fraud in the latest incident involving Malaysians.
Hua Mark district police chief Vatana Ejin said the suspects, aged 31 and 33, reportedly told police they were part of a group headed by a China national who was detained by police last week.
The man's five accomplices were also picked up.
Vatana said the duo were nabbed after a commercial bank reported that they used fake credit cards to carry out transactions at several shopping complexes here.
"Following information from the public, we traced one of them shopping at a mall in Ramkamheang area and another one in Ekkamai," he told a press conference Friday.
According to Vatana, the duo told investigators that the China national had given them fake credit cards and fake passports to go shopping for expensive items like mobile phones, electrical products, whisky and cigarettes.
Prior to their arrest, one of them was shopping for a mobile phone worth 11,900 baht (about RM1,200) while his colleague was buying some products worth 50,000 baht (about RM5,000).
Vatana said the duo had continued their activities even after the arrest of their accomplices, adding that investigations revealed each group member received a five per cent commission from the total value of the products they had bought.
Last year and early this year, several Malaysians were arrested by Thai police for using fake credit cards to buy goods at popular shopping malls in the capital.
In one case, a Malaysian was caught stealing credit card information from a local bank here.
In April, three Malaysians, including a woman, were charged in a Thai court for using forged credit cards to buy air tickets to Athens, Greece and Kuala Lumpur.
Due to the rampant credit card cases involving Malaysians, banks have tightened procedures, including asking Thailand-based Malaysian businessmen to change their credit cards upon returning from their homeland.
Hua Mark district police chief Vatana Ejin said the suspects, aged 31 and 33, reportedly told police they were part of a group headed by a China national who was detained by police last week.
The man's five accomplices were also picked up.
Vatana said the duo were nabbed after a commercial bank reported that they used fake credit cards to carry out transactions at several shopping complexes here.
"Following information from the public, we traced one of them shopping at a mall in Ramkamheang area and another one in Ekkamai," he told a press conference Friday.
According to Vatana, the duo told investigators that the China national had given them fake credit cards and fake passports to go shopping for expensive items like mobile phones, electrical products, whisky and cigarettes.
Prior to their arrest, one of them was shopping for a mobile phone worth 11,900 baht (about RM1,200) while his colleague was buying some products worth 50,000 baht (about RM5,000).
Vatana said the duo had continued their activities even after the arrest of their accomplices, adding that investigations revealed each group member received a five per cent commission from the total value of the products they had bought.
Last year and early this year, several Malaysians were arrested by Thai police for using fake credit cards to buy goods at popular shopping malls in the capital.
In one case, a Malaysian was caught stealing credit card information from a local bank here.
In April, three Malaysians, including a woman, were charged in a Thai court for using forged credit cards to buy air tickets to Athens, Greece and Kuala Lumpur.
Due to the rampant credit card cases involving Malaysians, banks have tightened procedures, including asking Thailand-based Malaysian businessmen to change their credit cards upon returning from their homeland.
Europol busts European credit card scam - focus-fen.net – 12 Jul 2008
The Hague. Officials bust a European syndicate Friday responsible for the large-scale forgery of credit cards, arresting five people in Italy and two in Greece, policing agency Europol said, AFP reported.
"The perpetrators skimmed and cloned credit cards, originating from countries all over Europe," it said in a statement.
"The data was then utilisedproduce counterfeit payment cards which were subsequently used for illegal cash withdrawals and payments in Greece and Italy."
The syndicate is believed to have siphoned off more than one million euros (1.5 million dollars), said the statement.
Investigators dismantled a counterfeit card production site in the Italian city of Livorno.
"The operation can be considered as a great success since this significant criminal group, producing and using counterfeit payment cards, was disrupted from the bottom up," said Europol director Max-Peter Ratzel.
The operation, dubbed "Plastik", was carried out by Italian policing agencies and Europol.
"The perpetrators skimmed and cloned credit cards, originating from countries all over Europe," it said in a statement.
"The data was then utilisedproduce counterfeit payment cards which were subsequently used for illegal cash withdrawals and payments in Greece and Italy."
The syndicate is believed to have siphoned off more than one million euros (1.5 million dollars), said the statement.
Investigators dismantled a counterfeit card production site in the Italian city of Livorno.
"The operation can be considered as a great success since this significant criminal group, producing and using counterfeit payment cards, was disrupted from the bottom up," said Europol director Max-Peter Ratzel.
The operation, dubbed "Plastik", was carried out by Italian policing agencies and Europol.
Saturday, July 12, 2008
Police bust counterfeit currency racket – kerelanext.com – 11 Jul 2008
NEW DELHI: Delhi Police claimed to have unearthed a counterfeit currency racket backed by Pakistan's ISI with the arrest of a person.
Mohammed Mushtaq, the alleged main conduit of the racket, was caught by Delhi Police's Special Cell from near Chhatrasal Stadium in the capital allegedly with fake notes having a face value of Rs 1.8 lakh, police said.
The arrest came following an input that a racket involved in the circulation of fake notes was operating in north-west Delhi.
Police claimed that Mushtaq told investigators that the trail of fake notes originates from Pakistan and through Bangladesh borders, it reaches the capital.
During interrogation, police claimed, the accused also revealed that the fake notes were supplied by an ISI operative based in Bangladesh.
He also told police that one Sahil is procuring the fake notes from Bangladesh.
A case has been registered and further investigations
Mohammed Mushtaq, the alleged main conduit of the racket, was caught by Delhi Police's Special Cell from near Chhatrasal Stadium in the capital allegedly with fake notes having a face value of Rs 1.8 lakh, police said.
The arrest came following an input that a racket involved in the circulation of fake notes was operating in north-west Delhi.
Police claimed that Mushtaq told investigators that the trail of fake notes originates from Pakistan and through Bangladesh borders, it reaches the capital.
During interrogation, police claimed, the accused also revealed that the fake notes were supplied by an ISI operative based in Bangladesh.
He also told police that one Sahil is procuring the fake notes from Bangladesh.
A case has been registered and further investigations
Wednesday, July 9, 2008
7-Eleven Responds to Citibank Hacker Case - csnews.com
DALLAS -- Hackers successfully accessed Citibank's network of ATMs inside 7-Eleven stores, stealing millions of dollars and personal information from unsuspecting customers, CSNews Online reported yesterday. It is estimated the breach began in October of last year. To date, it is unclear how many of Citibank's approximately 5,700 branded ATMs in 7-Eleven stores were impacted.
7-Eleven spokeswoman Margaret Chabris told CSNews Online: "7-Eleven Inc. is aware of the federal investigation in New York concerning ATM fraud that has apparently impacted Citi customers. It is 7-Eleven's policy not to comment on any aspects of this matter because it is an ongoing investigation."
Citibank, part of Citigroup Inc., has declined to comment on the technique or how many customers' accounts were compromised. It said it notified affected customers and issued them new debit cards.
"We want our customers to know that, consistent with legal requirements, we do not hold them responsible for fraudulent activity in their accounts," the bank said in a statement released last week.
Citibank does not own or operate the machines. The Houston-based Cardtronics Inc. owns all the machines, but only operates some, while the Brookfield, Wis.-based Fiserv Inc. operates the remaining machines.
"We understand that Citibank has already contacted any account holders who may have been impacted or that needed to receive a replacement card," said Chabris. "However, 7-Eleven is confident that its ATM provider, Cardtronics, has included the appropriate safeguards designed to prevent unauthorized access to our customers' personal data in the ATMs located in our stores today."
In other news, Unisys Corp.'s Canadian subsidiary, Unisys Canada, was awarded a contract from NEC Corp. of America to provide outsourced IT support services for 470 7-Eleven retail convenience stores throughout Canada.
"Unisys outsourcing expertise combined with NEC's retail solution integration skills will assist us in growing our 7-Eleven business in Canada," Sharon Stufflebeme, 7-Eleven's chief information officer, said in a released statement. "We'll be able to serve our customers more effectively and efficiently through enhanced in-store technology support."
Valued at $6 million over a three year term, the contract states that NEC Corp. of America is the prime contractor and will manage applications development and support for 7-Eleven Inc. Unisys Canada will provide maintenance and support services for IT back-office equipment, on-site wireless networks, point of sale (POS) and inventory ordering systems for the 470 Canadian 7-Eleven retail stores from Ontario to British Columbia.
"We look forward to working with Unisys on this important initiative," Naohide Takatani, general manager, Retail Solutions Group for NEC Corp., said in a released statement. "Drawing on Unisys expertise in technology support and maintenance in this engagement with 7-Eleven expands the range of benefits we can provide our client."
Bob Binns, president, Unisys Canada, said in a released statement: "Unisys is confident that in working with our partner NEC, we will provide 7-Eleven with a secure, flexible IT infrastructure that can accommodate its growing business in Canada."
7-Eleven spokeswoman Margaret Chabris told CSNews Online: "7-Eleven Inc. is aware of the federal investigation in New York concerning ATM fraud that has apparently impacted Citi customers. It is 7-Eleven's policy not to comment on any aspects of this matter because it is an ongoing investigation."
Citibank, part of Citigroup Inc., has declined to comment on the technique or how many customers' accounts were compromised. It said it notified affected customers and issued them new debit cards.
"We want our customers to know that, consistent with legal requirements, we do not hold them responsible for fraudulent activity in their accounts," the bank said in a statement released last week.
Citibank does not own or operate the machines. The Houston-based Cardtronics Inc. owns all the machines, but only operates some, while the Brookfield, Wis.-based Fiserv Inc. operates the remaining machines.
"We understand that Citibank has already contacted any account holders who may have been impacted or that needed to receive a replacement card," said Chabris. "However, 7-Eleven is confident that its ATM provider, Cardtronics, has included the appropriate safeguards designed to prevent unauthorized access to our customers' personal data in the ATMs located in our stores today."
In other news, Unisys Corp.'s Canadian subsidiary, Unisys Canada, was awarded a contract from NEC Corp. of America to provide outsourced IT support services for 470 7-Eleven retail convenience stores throughout Canada.
"Unisys outsourcing expertise combined with NEC's retail solution integration skills will assist us in growing our 7-Eleven business in Canada," Sharon Stufflebeme, 7-Eleven's chief information officer, said in a released statement. "We'll be able to serve our customers more effectively and efficiently through enhanced in-store technology support."
Valued at $6 million over a three year term, the contract states that NEC Corp. of America is the prime contractor and will manage applications development and support for 7-Eleven Inc. Unisys Canada will provide maintenance and support services for IT back-office equipment, on-site wireless networks, point of sale (POS) and inventory ordering systems for the 470 Canadian 7-Eleven retail stores from Ontario to British Columbia.
"We look forward to working with Unisys on this important initiative," Naohide Takatani, general manager, Retail Solutions Group for NEC Corp., said in a released statement. "Drawing on Unisys expertise in technology support and maintenance in this engagement with 7-Eleven expands the range of benefits we can provide our client."
Bob Binns, president, Unisys Canada, said in a released statement: "Unisys is confident that in working with our partner NEC, we will provide 7-Eleven with a secure, flexible IT infrastructure that can accommodate its growing business in Canada."
Sunday, July 6, 2008
Credit CardRacket Busted - Times of India - 03 Jul 2008
NEW DELHI: Three Nigerian nationals have been arrested by the police from South Extension market on Tuesday for allegedly running an international credit racket in the Capital. Seven cloned credit cards were seized from the accused, who used them to buy electronics and other goods from upscale markets in Delhi. More arrests in the racket are expected.
The crime branch stepped up action on receiving a complaint from a bank that a fake credit card is being used for purchase at a South Extension market. They later apprehended the suspects on Tuesday.
Interrogation of the accused revealed that they had been using fake credit cards to do shopping in Delhi. A S Cheema, DCP, (crime and railways), informed that, "the accused had procured the cards from a friend in Nigeria. A laptop and seven mobile phones were seized from them. The laptop contained data of about 200 international credit cards."
The police also seized three mobile phones which the accused had purchased using the fake credit cards. One of the mobiles had details of six credit cards in it. A police remand has been sought for further investigation.
Those arrested have been identified as Abayomi Anifowoshe (30), Evans Amathila Imadonmwinyi (32) and Bawwa (29). Police said Abayomi arrived in India in June 2008 in Mumbai for medical treatment of his wife who is yet to come to India.
He stayed in Mumbai with a friend for a week before coming to Delhi. He had been sharing a room with co-accused Bawwa at Arjun Nagar. Evans had been renting a place near Safadarjung airport. He came to India last year on a tourist visa. The third accused, Bawwa, came to India in March this year for a kidney surgery at Batra Hospital. "The three accused met through their contacts and received details of the credit cards through their contacts in Delhi," said a senior police officer.
The crime branch stepped up action on receiving a complaint from a bank that a fake credit card is being used for purchase at a South Extension market. They later apprehended the suspects on Tuesday.
Interrogation of the accused revealed that they had been using fake credit cards to do shopping in Delhi. A S Cheema, DCP, (crime and railways), informed that, "the accused had procured the cards from a friend in Nigeria. A laptop and seven mobile phones were seized from them. The laptop contained data of about 200 international credit cards."
The police also seized three mobile phones which the accused had purchased using the fake credit cards. One of the mobiles had details of six credit cards in it. A police remand has been sought for further investigation.
Those arrested have been identified as Abayomi Anifowoshe (30), Evans Amathila Imadonmwinyi (32) and Bawwa (29). Police said Abayomi arrived in India in June 2008 in Mumbai for medical treatment of his wife who is yet to come to India.
He stayed in Mumbai with a friend for a week before coming to Delhi. He had been sharing a room with co-accused Bawwa at Arjun Nagar. Evans had been renting a place near Safadarjung airport. He came to India last year on a tourist visa. The third accused, Bawwa, came to India in March this year for a kidney surgery at Batra Hospital. "The three accused met through their contacts and received details of the credit cards through their contacts in Delhi," said a senior police officer.
Indian's credit card swiped in Pakistan - khaleejtimes.com - 02 July 2008
DUBAI -Dubai Police have arrested two persons allegedly linked with an international gang of credit card fraudsters, from a hotel in Deira on Monday, police sources said.
The arrest follows a complaint filed by an Indian national whose credit card was allegedly skimmed in Dubai, and used in Pakistan for purchasing goods from a garment shop.
Even though police sources confirmed the arrest, they refused to divulge the details of the suspects and their modus operandi, citing that investigations were still in progress.
M.P.M, the Indian national whose card was allegedly skimmed by the suspected fraudsters, said he was shocked to hear that a transaction had been made in Pakistan using his credit card.
"I got my credit card with a limit of Dh24,000 on June 15. I activated it on June 19 and did only three transactions -one at a hotel and two in supermarkets. On June 26, I received a call from the bank informing me that a transaction of Pakistani Rupees 99,500 had been made at Zubair Garments, Lahore, swiping my credit card," said M.P.M, who works in the Purchase Department of a local construction company.
"It was a shocking information for me. I informed the bank immediately that I had never travelled to Pakistan and that the credit card was still with me. The bank instructed me to produce the card and my passport to them to prove I was in the UAE and the transaction was made by some others by forging credit card," he said.
The bank blocked the card soon after he informed them of the fraud, M.P.M said.
"On the same day, the fraudsters again tried to do two transactions of Rupees 50,000 each in the same shop. However, they failed to succeed as the card had been blocked by then," he added.
"I filed a dispute form to the bank on June 29 but they said the money would be reimbursed to my credit card account only after the bank gets proof about the fraudulent activity. Now, I am waiting for the reply from the bank," he said.
Meanwhile, a statement from the bank yesterday confirmed the incident, saying an account holder of the bank was the victim of defrauding.
"The suspects behind the scheme sought to skim the credit card details of patrons in a local hotel. The suspects were taken into custody yesterday," the statement said.
"After police probe, it was found that one account holder was victim of defrauding. The bank is currently working with the customer to settle the claim and refund the defrauded amount," the statement added.
The statement also disclosed that one of the suspects in the fraud had worked for an outsourcing agency contracted to provide services for the bank. The statement added that the suspects had earlier been terminated from the stated agency.
By Riyasbabu
The arrest follows a complaint filed by an Indian national whose credit card was allegedly skimmed in Dubai, and used in Pakistan for purchasing goods from a garment shop.
Even though police sources confirmed the arrest, they refused to divulge the details of the suspects and their modus operandi, citing that investigations were still in progress.
M.P.M, the Indian national whose card was allegedly skimmed by the suspected fraudsters, said he was shocked to hear that a transaction had been made in Pakistan using his credit card.
"I got my credit card with a limit of Dh24,000 on June 15. I activated it on June 19 and did only three transactions -one at a hotel and two in supermarkets. On June 26, I received a call from the bank informing me that a transaction of Pakistani Rupees 99,500 had been made at Zubair Garments, Lahore, swiping my credit card," said M.P.M, who works in the Purchase Department of a local construction company.
"It was a shocking information for me. I informed the bank immediately that I had never travelled to Pakistan and that the credit card was still with me. The bank instructed me to produce the card and my passport to them to prove I was in the UAE and the transaction was made by some others by forging credit card," he said.
The bank blocked the card soon after he informed them of the fraud, M.P.M said.
"On the same day, the fraudsters again tried to do two transactions of Rupees 50,000 each in the same shop. However, they failed to succeed as the card had been blocked by then," he added.
"I filed a dispute form to the bank on June 29 but they said the money would be reimbursed to my credit card account only after the bank gets proof about the fraudulent activity. Now, I am waiting for the reply from the bank," he said.
Meanwhile, a statement from the bank yesterday confirmed the incident, saying an account holder of the bank was the victim of defrauding.
"The suspects behind the scheme sought to skim the credit card details of patrons in a local hotel. The suspects were taken into custody yesterday," the statement said.
"After police probe, it was found that one account holder was victim of defrauding. The bank is currently working with the customer to settle the claim and refund the defrauded amount," the statement added.
The statement also disclosed that one of the suspects in the fraud had worked for an outsourcing agency contracted to provide services for the bank. The statement added that the suspects had earlier been terminated from the stated agency.
By Riyasbabu
Customers warned of data grab - 03 Jul 2008
SPRINGFIELD - Freedom Credit Union is warning customers of a security breach whereby debit card data was electronically captured by individuals who may have used it in a counterfeit scheme.
"We have been notified that your Debit card number was one of several obtained during the arrest and indictment of individuals in Eastern Europe and the United States," reads a June 27 letter from Freedom Credit Union to certain customers.
In response, the credit union has issued new debit cards and PIN numbers to affected customers.
Allen W. Reed, the credit union's information technology administrator, could not say yesterday how many cards were involved.
He said that such incidents are unfortunately common in the banking world.
According to the letter, Freedom Credit Union cards have been linked to points of purchase where criminals were able to capture debit card data. Freedom Credit Union reported cards stolen as of Monday, and then issued replacement cards and new PIN numbers, according to the letter.
The credit union told customers that existing cards "will be coded as stolen in our sytem on Monday, July 30," and that they should contact the credit union at (413) 750-5749 if they want to stop using their cards sooner.
Customers should expect to receive their new debit cards and PIN numbers in separate mailings within the next week to 10 business days.
Freedom Credit Union has offices in Springfield, Northampton, Chicopee, and Turners Falls.
By JIM KINNEY
"We have been notified that your Debit card number was one of several obtained during the arrest and indictment of individuals in Eastern Europe and the United States," reads a June 27 letter from Freedom Credit Union to certain customers.
In response, the credit union has issued new debit cards and PIN numbers to affected customers.
Allen W. Reed, the credit union's information technology administrator, could not say yesterday how many cards were involved.
He said that such incidents are unfortunately common in the banking world.
According to the letter, Freedom Credit Union cards have been linked to points of purchase where criminals were able to capture debit card data. Freedom Credit Union reported cards stolen as of Monday, and then issued replacement cards and new PIN numbers, according to the letter.
The credit union told customers that existing cards "will be coded as stolen in our sytem on Monday, July 30," and that they should contact the credit union at (413) 750-5749 if they want to stop using their cards sooner.
Customers should expect to receive their new debit cards and PIN numbers in separate mailings within the next week to 10 business days.
Freedom Credit Union has offices in Springfield, Northampton, Chicopee, and Turners Falls.
By JIM KINNEY
Friday, June 27, 2008
CIB nabs 17 for making fraudulent credit Cards - chinapost.com.tw
The detainees included Yang Tsao-chin, the ring leader who was only released from jail last year for the same crime.
Agents of the CIB under the National Police Agency (NPA) said that Yang could have teamed up with accomplices in some neighboring Southeast Asian nations for this international scheme.
After receiving tips on the use of fake credit cards on the market, agents cooperated with financial institutions, department stores, and the National Credit Card Center to trace and hunt down the customers who made purchases with the phony cards.
They decided to take action on Tuesday after learning about the return of Wang Chun-chieh, a local accomplice, with a batch of blank cards from a trip to Malaysia.
Yang and Wang managed to put up a team of around 20 people to set up an operation center at an apartment rented in Zhonghe City of Taipei County.
The agents and local police have also confiscated 17 newly produced credit cards, 250 semifinished ones, several counterfeit identity cards, and passports plus printing machines, notebook computers, and other equipment.
The fake cards looked identical with the genuine American Express cards and Diners Club cards.
An initial probe by the CIB showed that Yang restarted his counterfeit operation after getting out of jail last year.
He could have purchased the codes for the credit cards from foreign suppliers who illegally copied the data with sophisticated electronic gadgets when the cards of customers were swiped during financial transactions at stores.
Yang, 46, may have also acquired the data contained inside the cards from computer hackers who were able to retrieve the data during online transactions.
He sent out members in his syndicate to make massive purchases with the fake cards and then converted the purchased goods into cash before the counterfeit cards were discovered by store owners or card-issuing banks.
Yang has netted an estimated over NT$10 million in illegal gains.
According to the CIB, Yang was arrested with more than 2,000 fake credit cards six years ago in one of the largest fake card crime cases in Taiwan.
Agents of the CIB under the National Police Agency (NPA) said that Yang could have teamed up with accomplices in some neighboring Southeast Asian nations for this international scheme.
After receiving tips on the use of fake credit cards on the market, agents cooperated with financial institutions, department stores, and the National Credit Card Center to trace and hunt down the customers who made purchases with the phony cards.
They decided to take action on Tuesday after learning about the return of Wang Chun-chieh, a local accomplice, with a batch of blank cards from a trip to Malaysia.
Yang and Wang managed to put up a team of around 20 people to set up an operation center at an apartment rented in Zhonghe City of Taipei County.
The agents and local police have also confiscated 17 newly produced credit cards, 250 semifinished ones, several counterfeit identity cards, and passports plus printing machines, notebook computers, and other equipment.
The fake cards looked identical with the genuine American Express cards and Diners Club cards.
An initial probe by the CIB showed that Yang restarted his counterfeit operation after getting out of jail last year.
He could have purchased the codes for the credit cards from foreign suppliers who illegally copied the data with sophisticated electronic gadgets when the cards of customers were swiped during financial transactions at stores.
Yang, 46, may have also acquired the data contained inside the cards from computer hackers who were able to retrieve the data during online transactions.
He sent out members in his syndicate to make massive purchases with the fake cards and then converted the purchased goods into cash before the counterfeit cards were discovered by store owners or card-issuing banks.
Yang has netted an estimated over NT$10 million in illegal gains.
According to the CIB, Yang was arrested with more than 2,000 fake credit cards six years ago in one of the largest fake card crime cases in Taiwan.
Sunday, June 8, 2008
NET WIDENS IN HUNT FOR CLONERS - thisissouthdevon.co.uk - 07 Jun 2008
Police probing a credit card cloning gang in Torquay say similar offences have been uncovered across Devon, including one in Totnes.They fear the hi-tech hole-in-the-wall raiders could have bagged tens of thousands of pounds with offences 'snowballing' once unsuspecting victims receive their latest bank statements.
Detectives revealed yesterday that false fronts had been fitted to a cashpoint machine at the Nationwide Building Society in Torquay's Union Street between May 12 and Wednesday this week.
They have also revealed that an attempt was made on May 26 to fix one of the sophisticated pieces of gadgetry to a similar machine at the Nat West Bank just 100 yards away.
Torquay CIT's Det Insp Paul Jones said: "The machine was damaged because we believe someone was messing about with it with a view to fixing a copying device."Certainly the matter has been added to our inquiry.
"He confirmed that similar cloning-related incidents over the last few weeks were being investigated in Totnes and in Exeter, Plymouth, Barnstaple, Sidmouth and Ilfracombe.
The Totnes incident happened at Barclay's Bank in High Street at 5.30am on April 15 when three men in hooded tops were seen trying to remove an anti-skimming device from the bank's ATM.
At least three people had their cards cloned from the same machine in 2004.Last month's incident was logged by police as criminal damage. The crime reference number is JS/08/457.DI Jones said:
"At the moment we have no way of telling how organised the gang is. That's what we are trying to get to the bottom of. Once we know this it will influence how we progress the matter."He conceded that the number of offences could well snowball once account holders received their statements over the coming weeks.But for the moment the suspicion was that the gang had creamed off tens of thousands of pounds from accounts across the county.
BY PAUL JAMES
Thursday, June 5, 2008
Man busted with fake credit cards - Mysuncoast.com - 05 Jun 2008
SARASOTA - A Miami man is busted on the Suncoast for using phoney credit cards.
Sarasota County Sheriff's Deputies pulled over 31-year-old Fidel Preces on I-75 in Venice after he tried to buy a GPS with one of the suspect cards at an electronics store.
A report says preces went into the West Marine in the 1800 block of South Tamiami Trail in Venice Tuesday.
The employee wanted to order Preces a new one in a box, but he refused and wanted to buy the floor model.
Deputies say the employee noticed that Preces' credit card looked fake, and when he asked for identification Preces took off.
It turns out that an email had already been sent out to all West Marine stores warning that Preces is out to buy goods with fake credit cards.
Preces didn't get far. He was pulled over on I-75, where deputies found 8 counterfeit cards on the floor board of the vehicle, all bearing Preces' name, but with different account numbers.
American Express says all the numbers were valid to account-holding customers, none of them however belonging to Fidel Preces.
Preces told deputies the cards were his and issued by a bank, but couldn't explain why they were other people's account numbers.
He also admitted that he bought a $2,000 GPS over the weekend with an american express card in fort myers and bought two generators elsewhere, according to a report.
Preces is charged with 8 counts of forgery with a credit card, and is locked up in the Sarasota County Jail on more than $8,000 bond.
Wednesday, June 4, 2008
Counterfeit credit cards main source of cyber crime - crime-research.org - 03 Jun 2008
LAHORE: Counterfeit credit cards, allegedly smuggled from China, are the main source of cyber crime across the country, as it is the easiest way to swindle banks and financial institutions, said a Federal Investigation Agency (FIA) official on Tuesday.
Card skimming, the electronic theft of information from the magnetic strips of credit cards, is the fastest-growing scam in Pakistan and now represents 60 percent of all credit-card frauds, he said on the condition of anonymity.
“Criminals have also started producing counterfeit credit cards that are barely detectible or differentiable from the original cards,” he said.
Highly sophisticated portable machines are freely available in Pakistan, which are capable of producing ‘genuine’ cards with ‘original’ holograms and imprinted signature strips, he said.
He said that most of the gang leaders were highly qualified and live in posh areas. “They are specially interested in foreign banks, especially those of Italy, South Africa, Singapore, Thailand, Malaysia and England, because of a higher credit limit as compared to local banks,” he said.According to the FIA officials, the cyber crime unit (CCU) registered 15 cases and arrested 24 people in 2007, out of which 12 cases were related to credit cards fraud.
“The cyber crime unit registered 14 cases this year, out of which six cases were of credit card fraud, two were related to online banking and three involved software hacking,” he said. CCU Deputy Director Azhar Mehmood said that criminals often used Chinese-made white plastic cards with electro-magnetic chips.He said that the unit helped banks recover millions of rupees since its establishment in 2005. He claimed that the unit has helped various banks recover Rs 20 million the past year-and-a-half.
“The criminals have a special liking for petrol pumps, as they purchase oil with counterfeit credit cards to sell on the open market,” he said, adding that some petrol pump cashiers were also involved in the business.
“Traders have now started informing on the criminals after being warned against becoming accomplices in the crime,” he said. He said that the general public was not aware of such crimes and usually became an easy prey. “A campaign has been launched to educate them about cyber crimes,” he added.
By: Shafiq SharifMonday, May 26, 2008
Notes from the underground: The next generation of carders - blogs.creditcards.com
One of the most notable increases in cybercrime is in credit card fraud, according to the most recent annual report by the FBI's Internet Fraud Complaint Center. Cybercrime in itself is a booming business, having grown to $240 million in reported crimes to law enforcement in 2007 -- up $40 million from the year before.
The first part of this series covered the secret history of one group of credit carders -- online crooks who deal in stolen credit and debit card account information -- and their flamboyant leader who turned from wanted online fraudster to Ukrainian politician.
And now there's a new generation of carders on the prowl that operate far below the public radar. Dumpster divers (people who dig out personal information from discarded receipts and mail) and skimmers are yesterday's news. Today, credit carders are launching "full-fledged online bazaars full of stolen personal and financial information," says Brian Nagel, assistant director of the U.S. Secret Service's Office of Investigations.
As more people report getting ripped off online, crooks are finding more ways to rip us off. Let's see what they're doing.
Part 2 - Notes from the underground: The next generation of carders
The first part of this series covered the secret history of one group of credit carders -- online crooks who deal in stolen credit and debit card account information -- and their flamboyant leader who turned from wanted online fraudster to Ukrainian politician.
And now there's a new generation of carders on the prowl that operate far below the public radar. Dumpster divers (people who dig out personal information from discarded receipts and mail) and skimmers are yesterday's news. Today, credit carders are launching "full-fledged online bazaars full of stolen personal and financial information," says Brian Nagel, assistant director of the U.S. Secret Service's Office of Investigations.
As more people report getting ripped off online, crooks are finding more ways to rip us off. Let's see what they're doing.
Part 2 - Notes from the underground: The next generation of carders
Screenshot of counterfeiting site(Click to enlarge) - To read the full story visit http://blogs.creditcards.com/2008/05/notes-from-the-underground.php
Wednesday, May 21, 2008
The credit card-terrorism connection - creditcards.com
How terrorists use cards for everyday needs and to fund operations - By Jeremy Simon
If you've ever used your credit card to buy plane tickets, go grocery shopping or do some online gambling, your monthly statement may not be all that different from that of a terrorist.
Interviews with terrorism experts and readings of case studies from around the world reveal that the credit card has become a favored tool of terrorists. In the hands of a radical, credit cards enable terrorist funding through money laundering operations and identity theft schemes, while allowing the same everyday transactions that law-abiding citizens enjoy.
Plastic pays for terrorismLike any business organization, terrorist groups have both one-time costs and recurring expenses. Staging a terrorist attack can be relatively cheap, but there are also the various day-to-day expenses of maintaining a terrorist cell, including food and travel costs. To cover their needs, terrorists require funding.
That's where plastic comes in. "Credit cards are one avenue available for terrorist financing," says Carol Van Cleef, a partner in the international law firm of Bryan Cave and an expert on anti-money laundering compliance and payments. "Criminals -- and I don't think terrorists are any exception -- will use all types of payment alternatives. Credit cards are just one thing they will look to."
A February 2008 report, "Terrorist Financing," by the Paris-based international anti-money-laundering agency, Groupe d'action financière (Financial Action Task Force) reaches the same conclusion. Recent use of credit cards by terrorists, it concluded, "shows the vulnerability of credit cards to misuse for terrorist financing purposes and other illegal activities."
Experts consulted for this article would not go into detail on specific cases, for fear of providing instructions, but in general, they said the appeal of credit cards is simple. Terrorists and their global support networks choose to finance activities with debit and credit cards for the same reason that the rest of us do: Plastic makes for easy payments. "Any financial vehicles that are convenient for consumers are also convenient for terrorists," says Debra Geister, director of Fraud Prevention & Compliance Solutions with LexisNexis's Risk & Information Analytics Group in New London, Minn.
Where's the python?Plastic helps terrorists by enabling easy movement of funds -- which is ideal for money laundering purposes. While a drug trafficker may seek to hide the source of ill-gotten gains when transferring money into the legitimate financial system, terrorists launder money "not to hide the source of the money, but to hide the ultimate purpose of the money," says Chris Myers, chair of the Compliance Services National Practice Team and partner in the law firm Holland & Knight, based in Tyson's Corner, Va. For example, by funneling funds from a legitimate charity, terrorists may not need to derive their funds illegally.
Ed Wilson, former acting general counsel of the U.S. Department of Treasury, agrees that for law enforcement and others, there is an important distinction between drug and terrorist money laundering. "In one you're trying to find the bulge moving thru the python, in the other you're trying to find why the python isn't there," Wilson says.
Moving the moneyAs an example of how terrorists employ credit cards, Myers gives the hypothetical scenario of a terrorist cell in the European Union that wants to carry out an attack on U.S. soil. A credit card obtained in Europe is simply handed to the cell member who travels to the United States to execute the attack. Bringing a wad of bills into this country would violate cash reporting laws (potentially preventing entry into the country), but there is nothing illegal about carrying credit cards from Europe into the United States. Credit cards can even be mailed internationally, Myers says.
Prepaid cards and gift cards offer a similar benefit: They can be loaded with money and then easily transported to another place for terrorist activity. "Stored value is convenient and it can be anonymous," says Geister. Since wallets are generally not checked when people move across borders (as opposed to scrutiny of passports or other documentation), "You've now brought money across an international border without detection," Myers says.
Geister says another technique used to transmit funds involves cell phones linked to a prepaid card or credit card account -- a common option overseas. A terrorist can link the card to his mobile phone, which can then be used to wire money over the wireless network to a fellow cell member who may be in another country altogether. Geister highlights the speed of this process, saying that it takes just two minutes to register the cell phone and seconds to transfer funds to the person on the other end. The evidence of the transfer would perhaps amount to little more than a transaction detail on the terrorist's credit card statement.
With terrorists, there is some gray area in regards to what constitutes money laundering. Everyday costs, like groceries, can also be charged to the terrorist's credit or debit card. "Is it money laundering?" asks Geister. "By the technical definition, it's not money laundering. Is it facilitating a terrorist cause? Yes it is," she says.
Ever resourceful and creative, terrorists have a variety of techniques for moving funds around. "There are as many different schemes and scenarios out there as there are money launderers," Geister says. Regardless of the scheme, the goal is the easy movement of funds for terrorists: "They can fly under the radar screen," Myers says.
Terrorism and credit card fraudTerrorist cells often seek to blend in, so careful use of credit is important. "The terrorist is looking to be as vanilla as possible," says Wilson. Since they don't want the risk of drawing added attention, "Terrorists by and large will only open up legitimate credit cards," he says.
Not necessarily, argues Geister. "Certainly they want to stay under the radar," she says. "But does that mean they don't use false identities? I don't think that it does." Even when credit card information is stolen or a fraudulent account is set up, terrorists still play it safe, making sure they pass the verification tests and avoiding large account deposits while paying off charges incrementally, Geister explains. "The more anonymous they are, the more problematic they are from a money laundering perspective."
Having numerous fraudulent accounts also gives the terrorist options, she says. "If I have 100 different identities set up in the system, they're not going to focus on one," says Geister. This approach helps with law enforcement crackdowns, too. As a terrorist, "The last thing I want to do is to have someone come straight to me," she says. Linking an account to an actual terrorist's identity could expose plotters whose names appear on watch lists. Referring to the Office of Foreign Assets Control division of the U.S. Treasury, "If I'm on the OFAC list, am I really going to tell you my name is Osama Bin Laden?" Geister asks.
Fraud techniquesAccount information from legitimate credit cards becomes a valuable commodity for terrorists. "Terror groups and criminal organizations use credit card cloning and skimming to fund themselves," says Loretta Napoleoni, author of "Terror Incorporated: Tracing the Money Behind Global Terrorism." "Cloning is done primarily via the Internet. Skimming requires use of the actual card, so it is done in restaurants and stores," she says. "It is a very popular and easy technique." Experts also note that the theft of a laptop or computer database security breaches can produce a treasure trove of credit card information for fraudsters.
"It happens that various terrorist organizations engage in credit card fraud and related crimes (e.g. phishing), as do individuals and groups of so-called 'homegrown' terrorists," says Aaron Weisburd via e-mail. Weisburd is director of the Web forum Internet Haganah, which tracks pro-terrorist online activity. "Regarding the latter, we are in an age of 'do-it-yourself' terrorism and this is a kind of fundraising activity that such people can engage in on their own, freeing them from any need for financial support from a formal organization such as al-Qaida."
"It is worth noting that often the perpetrator is not the terrorist himself, but rather the individuals or small businesses who are providing services such as hosting a Web site for terrorists," he adds.
"What I can say is that in the course of investigating online activity of terrorist groups and their supporters, I uncover signs of credit card fraud frequently, and have done so for at least six years," Weisburd says. Still, "I would not say that it is happening more often now than before," Weisburd says.
How much credit card fraud is tied to terrorism?Yet it is happening. Fraud is an unbelievably profitable business. "We don't have any way to know how much of that credit card fraud is related to terrorism. It may be higher than we even know about," Geister says.
Therefore, consumers can play an active role in preventing terrorist funding by staying alert to credit card fraud. "The more diligent consumers can be to protect their data, the better," she says.
"Consumer attention to credit card fraud is crucial because the more that people are aware of fraud, the less likely it is to work," says U.S. Treasury spokesman John Rankin. "Preventing terrorist financing is an international effort with many components, but consumer awareness is certainly important."
Counterfeit credit cards main source of cyber crime - Daily Times - 21 May 2008
LAHORE: Counterfeit credit cards, allegedly smuggled from China, are the main source of cyber crime across the country, as it is the easiest way to swindle banks and financial institutions, said a Federal Investigation Agency (FIA) official on Tuesday.Card skimming, the electronic theft of information from the magnetic strips of credit cards, is the fastest-growing scam in Pakistan and now represents 60 percent of all credit-card frauds, he said on the condition of anonymity.
“Criminals have also started producing counterfeit credit cards that are barely detectible or differentiable from the original cards,” he said. Highly sophisticated portable machines are freely available in Pakistan, which are capable of producing ‘genuine’ cards with ‘original’ holograms and imprinted signature strips, he said.
He said that most of the gang leaders were highly qualified and live in posh areas. “They are specially interested in foreign banks, especially those of Italy, South Africa, Singapore, Thailand, Malaysia and England, because of a higher credit limit as compared to local banks,” he said.
According to the FIA officials, the cyber crime unit (CCU) registered 15 cases and arrested 24 people in 2007, out of which 12 cases were related to credit cards fraud.
“The cyber crime unit registered 14 cases this year, out of which six cases were of credit card fraud, two were related to online banking and three involved software hacking,” he said. CCU Deputy Director Azhar Mehmood said that criminals often used Chinese-made white plastic cards with electro-magnetic chips.
He said that the unit helped banks recover millions of rupees since its establishment in 2005. He claimed that the unit has helped various banks recover Rs 20 million the past year-and-a-half.
“The criminals have a special liking for petrol pumps, as they purchase oil with counterfeit credit cards to sell on the open market,” he said, adding that some petrol pump cashiers were also involved in the business. “Traders have now started informing on the criminals after being warned against becoming accomplices in the crime,” he said. He said that the general public was not aware of such crimes and usually became an easy prey. “A campaign has been launched to educate them about cyber crimes,” he added.
By Shafiq Sharif
“Criminals have also started producing counterfeit credit cards that are barely detectible or differentiable from the original cards,” he said. Highly sophisticated portable machines are freely available in Pakistan, which are capable of producing ‘genuine’ cards with ‘original’ holograms and imprinted signature strips, he said.
He said that most of the gang leaders were highly qualified and live in posh areas. “They are specially interested in foreign banks, especially those of Italy, South Africa, Singapore, Thailand, Malaysia and England, because of a higher credit limit as compared to local banks,” he said.
According to the FIA officials, the cyber crime unit (CCU) registered 15 cases and arrested 24 people in 2007, out of which 12 cases were related to credit cards fraud.
“The cyber crime unit registered 14 cases this year, out of which six cases were of credit card fraud, two were related to online banking and three involved software hacking,” he said. CCU Deputy Director Azhar Mehmood said that criminals often used Chinese-made white plastic cards with electro-magnetic chips.
He said that the unit helped banks recover millions of rupees since its establishment in 2005. He claimed that the unit has helped various banks recover Rs 20 million the past year-and-a-half.
“The criminals have a special liking for petrol pumps, as they purchase oil with counterfeit credit cards to sell on the open market,” he said, adding that some petrol pump cashiers were also involved in the business. “Traders have now started informing on the criminals after being warned against becoming accomplices in the crime,” he said. He said that the general public was not aware of such crimes and usually became an easy prey. “A campaign has been launched to educate them about cyber crimes,” he added.
By Shafiq Sharif
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