NYC Card Skimming Take-down

Authorities in New York have indicted 28 suspects for their alleged connection to an organized credit-card forgery and larceny operation.

According to a statement issued by the Manhattan District Attorney, the crime ring recruited waiters and waitresses in high-end restaurants to use hand-held skimming devices to steal card details from at least 50 American Express accountholders.

The take-down highlights innovation in insider fraud.

"This is an example of a growing trend," says Mike Braatz, senior vice president and general manager of bank fraud for Memento, a fraud-management software services provider. "Collusive fraud rings recruit and train specialists, and then place them in organizations where they have relatively easy access to financial information or resources."

The 18-month investigation, overseen by New York City Police and the Secret Service, involved court-ordered eavesdropping and video surveillance, physical surveillance, computer forensics and analysis of credit card, banking and phone records.

"The suspects in this credit card fraud case thought that they flew low on law enforcement's radar, but NYPD detectives working with the U.S. Secret Service and Manhattan District Attorney's office were able to trace the crew of [Wolfgang's Steakhouse] waiters who skimmed victims' information to the buyers who ordered high-end luxury items for complicit clients," New York City Police Commissioner Raymond Kelly said in the statement. "These criminals were careful, but as it turned out, not nearly careful enough."

Posted in: Collusive Networks Account Takeover Identity Theft Debit Card Fraud Deposit Account Fraud