08 February 2016

Ex Subway franchise owner pleads guilty to gift card POS hacking scam

15 May 2014  |  5757 views  |  1 Subway

A former Subway franchise owner has admitted to remotely hacking point-of-sale terminals at the sandwich chain and topping up gift cards to the tune of $40,000.

Shahin Abdollahi, aka Sean Holdt, held Subway franchises in Southern California from 2005 to 2008. He then quit to set up a firm called POS Doctor, which sold and installed point-of-sale systems to Subway restaurant franchises around the country.

According to prosecutors, around 2011 Abdollahi and co-conspirator Jeffrey Wilkinson began remotely hacking the machines, breaking into at least 13 and fraudulently adding around $40,000 in value to Subway gift cards.

The men used the funds to buy sandwiches and Wilkinson also sold fraudulent gift cards to others using eBay and Craigslist.

Wilkinson pleaded guilty in February and will be sentenced later this month. Abdollahi has now followed suit, admitting to one count of conspiracy to commit computer intrusion and wire fraud and one count of wire fraud. His sentencing is scheduled for August.

Comments: (1)

A Finextra member | 16 May, 2014, 09:42

"The men used the funds to buy sandwiches.....". Who said there's no such thing as a free lunch?

Strange fraud to commit......

1 thumb up! 1 thumb up! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

19 March, 2013
09 January, 2013
19 September, 2012
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
10905 views comments | 48 tweets | 41 linkedin
Digital transformation driving earnings at...
9200 views comments | 44 tweets | 36 linkedin
ECB eyes up European P2P payments
7754 views comments | 28 tweets | 38 linkedin
Visa opens up to developers
7550 views comments | 23 tweets | 40 linkedin
It may take ten years, but blockchain tech...
6374 views comments | 20 tweets | 19 linkedin

Featured job

Brussels (Belgium) or Paris (France)

Find your next job