April 23, 2007

NEWS: Waiters Sold Card Info

According to a team of New York prosecutors, several restaurant diners got more than just a good meal when they went out to dinner. Allegedly, waiters in some forty restaurants (both within the state and elsewhere) were copying credit card info from their patrons, and passing it along to identity thieves, say authorities. The people at the end of the scam used the diners’ information to make off with some $3 million in fraudulent purchases.

Thirteen people were arrested at the end of last week for their parts in the fraud ring, say prosecutors. It seems that the stolen card information came from visitors to restaurants in Manhattan's Chinatown and other parts of the New York metropolitan area, as well eateries in Florida, New Hampshire, New Jersey and Connecticut. Some of those arrested were among the group stealing the onformation in the first place; others cloned the cards using the stolen information, and a third group was involved in buying the goods. Police believe that the next step was to sell the goods for cash, bringing the fraud full-circle.

According to Manhattan District Attorney Robert Morgenthau, all but one of the thirteen arrested remained in custody over the weekend. The group are being individually charged with fourth-degree conspiracy, punishable by up to four years in prison. Seven are also being charged with second-degree grand larceny, which carries a penalty of up to 15 years. When the group’s ringleader was nabbed, Morgenthau stated, police unearthed 296 fake credit cards, $200,000 in cash, numerous Rolex watches and expensive handbags in his Brooklyn home.

 
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