About Us | Contact Us
View Cart

Department of Justice Uncovers Massive Credit Card Fraud Scheme

By Vigilize | Wednesday, February 13, 2013 - Leave a Comment

Holes in cross-channel, cross-account monitoring by banking institutes may be to blame.

A massive criminal scheme involving 13 individuals and crossing multiple state and international boarders has been uncovered by the Department of Justice. The criminals built an enterprise by using fake identities to create fraudulent credit profiles and taking out large loans from credit bureaus which would never be repaid.

These recent events bring to light the holes in cross-channel and cross-account monitoring by banking institutions. Millions of dollars were moved from account to account, each controlled by the perpetrators. Millions of dollars were also wired to overseas accounts including Pakistan, India, Canada, Romania, China, and Japan. In total, 169 bank accounts, 25,000 credit cards, and 7,000 false identities are estimated to have been used by the criminals in their fraudulent activities. Current figures find that losses may total more than $200 million.

Director of AML market planning for LexisNexis’ financial services division, Micah Willbrand, insists that such activities should have raised flags sooner. Banking institutions usually only confirm the identity of an account owner once, then never again. Willbrand contests, “if they had gone back to review some of these identities in this case, then some of that would have come out sooner.”


Original article by Tracy Kitten.
Read the full story here.

Latest News
    Today we present a special BONUS awareness poster for YOUR customers (and users).  This update to the April 2022 Awareness Poster takes some cues from the Dan’s New Leaf article: Why Local? Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the […]
    Awareness is 9/11’s of the battle, if we use it! Another one of those Dan’s New Leaf Posts, meant to inspire thought about IT Governance . . . . One of my old college buddies hates banks.  He was turned down for a loan a long time ago and just can’t let go.  I actually […]
    PRESS RELEASE – FOR IMMEDIATE RELEASE SERVICE NEWS Dateline: Dayton, IN, June 22, 2022 We are proud to announce that infotex will now be supporting Endpoint Detection and Response (XDR/MDR)! We can manage/monitor solutions you already have or offer one as part of our service while still maintaining a segregated response posture. In recent years […]
    Over 85 percent of surveyed companies report having no  centralized monitoring of networked industrial devices… An article review. If you are involved in IT within your organization, you’re probably aware of the importance of being able to monitor relevant activity from your networked devices, especially if your organization is involved in healthcare, finance, or government.  […]
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around […]
    We always strive to bring you the best content that we possibly can. Your opinion on any content, presentation, service, or anything else you have received from us is important! Please click the button below to let us know how we are doing!  
    What to Expect in an Annual Information Security Report to the Board Webinar-Movie Information security ranks as a top risk to financial institutions, both in terms of likelihood and overall impact. It is important that boards receive annual comprehensive reporting from management about the information security risks and incidents, and the actions taken to address […]
    The Five Precepts of IT Vendor Management Webinar-Movie We’re going back to basics on Vendor Management. This webinar will give you a training tool to help out that new person that is starting to take on the gargantuan task that is Vendor Management.
    Another awareness poster for YOUR customers (and users).  Now that we have our own employees aware, maybe it’s time to start posting content for our customers! Check out posters.infotex.com for the whole collection! Download the large versions here: Awareness Poster (Portrait) Awareness Poster (Landscape)   You are welcome to print out and distribute this around […]
    The joint cybersecurity advisory includes the 15 most exploited vulnerabilities reported in 2021… An article review.  While a lot of attention is focused on previously undisclosed or “zero day” attacks, some of the most likely attack vectors are vulnerabilities that have been widely known for weeks or even months.  That’s according to a new joint […]