Jump to content



Photo

Feds bust massive $200M credit-card fraud scheme

usa department of justice over 25000 fraudulent cards luxury automobiles electronics

  • Please log in to reply
4 replies to this topic

#1 Hum

Hum

    totally wAcKed

  • 63,238 posts
  • Joined: 05-October 03
  • Location: Odder Space
  • OS: Windows XP, 7

Posted 05 February 2013 - 23:20

Eighteen people have been charged in what federal prosecutors in New Jersey called one of the largest credit card fraud schemes ever uncovered by the U.S. Department of Justice, spanning 28 states and eight countries.

"The defendants are part of a massive international fraud enterprise involving thousands of false identities, fraudulent identification documents, doctored credit reports and more than $200 million in confirmed losses," FBI Special Agent James Simpson said in court records.

According to court records, the scheme involved three basic steps: The defendants allegedly created thousands of fake identities, pumped up the credit histories of those fictitious people and then racked up charges on fraudulently obtained credit cards.

Posted Image
"Due to the massive scope of the fraud, which involved over 25,000 fraudulent credit cards, loss calculations are ongoing and final confirmed losses may grow substantially," Simpson said.

The proceeds, authorities said, were used for luxury automobiles, electronics, spa treatments, high-end clothing and millions of dollars in gold. Authorities said the fraudsters also stockpiled large sums of case and approximately $70,000 in cash was found in one defendant's oven.

more


#2 Tom

Tom

    Neowinian Senior

  • 3,278 posts
  • Joined: 06-October 09
  • Location: Germany
  • OS: Windows 7

Posted 05 February 2013 - 23:57

I'd rather them bust the wall street bankers that committed the biggest fraud in world history.

#3 n_K

n_K

    Neowinian Senior

  • 5,402 posts
  • Joined: 19-March 06
  • Location: here.
  • OS: FreeDOS
  • Phone: Nokia 3315

Posted 05 February 2013 - 23:59

The proceeds, authorities said, were used for luxury automobiles, electronics, spa treatments, high-end clothing and millions of dollars in gold. Authorities said the fraudsters also stockpiled large sums of case and approximately $70,000 in cash was found in one defendant's oven.

I would have laughed had said criminal turned the oven on and forgot about the money being there!

#4 Growled

Growled

    Neowinian Senior

  • 41,508 posts
  • Joined: 17-December 08
  • Location: USA

Posted 06 February 2013 - 01:26

Glad these jerks got caught.

#5 OP Hum

Hum

    totally wAcKed

  • 63,238 posts
  • Joined: 05-October 03
  • Location: Odder Space
  • OS: Windows XP, 7

Posted 06 February 2013 - 01:28

I wonder how many banks, merchants recover the products or money lost ... or does a lot of this get passed on to the honest buyers ?