May 12, 2009
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New York Busts Major CC Theft Operation, Pt.2
What Did They Do?According to Queens District Attorney, Richard Brown, the investigation is quite “possibly the tip of a much larger global credit card trafficking operation” as evidenced by the large number of individuals indicted. Brown also stated that in addition to compromising and depleting the accounts of U.S. citizens, it is believed the criminals shipped stolen credit cards to individuals across the world to use in fraudulent activities including Japan, Saudi Arabia, and Dubai. Furthermore, the criminal ring involved three separate identity and credit card theft groups that employed multiple cells throughout the U.S. and Canada. Several defendants lived in California, Illinois, Maryland, Pennsylvania, and Toronto. It is feared that some of the consumers’ information has fallen into the hands of terrorists who might be using the stolen funds to finance their operations or to corrode the activities of homeland security whose job it is to protect our country and borders. Mr. Brown reinforced that they will continue to work with all law enforcement agencies to ensure the U.S. is safe and secure.
Mr. Brown also spoke about the challenges of law enforcement agencies in protecting the securities of consumers and financial institutions. New state of the art technologies have made it easier for criminals to conduct identity and credit card fraud. According to Mr. Brown these two entities have become the fastest growing areas in the world of crime. It “afflicts millions” and “cost millions.” The accused in Operation Plastic Pipe Line are charged with activating the stolen cards by using the technology called SpoofCards. The technology allows the thief to disguise the caller’s phone id and voice while calling into the credit card company to verify receipt and activation of the card. Mr. Brown says the SpoofCards is “virtually untraceable.” Further, he states the technology also gives the thief the capabilities to pose as government and financial authorities to illegally obtain consumer financial information.
Defendants have been charged with 784 pattern acts as well as criminal acts violating the New York State’s Organized Crime Control Act. Mr. Brown also stated the accused are charged with participating and associating with three organized crime systems with the intent to “defraud” unsuspecting credit card consumers and financial institutions.