29 July 2016
Find out more

Crooks steal $11m in ATM heists; 18 accused of £200m card fraud

06 February 2013  |  6577 views  |  0 ATM user

Cyber-crooks managed to take over financial accounts late last year and withdraw nearly $11 million from ATMs around the world using pre-paid cards.

According to security blogger Brian Krebs, gang members managed to take around $9 million from cash machines in more than a dozen countries in a matter of hours on Christmas Eve. This was followed up just before New Year's Eve by an attack on a card network in India which saw the thieves make off with around $2 million.

In an alert - published by Krebs - to issuers, processors and ATM acquirers, sent out shortly after the second attack, Visa warns that further attempts are expected, urging increased vigilance.

The attacks, Visa explains come from hackers gaining access to issuer authorisation systems and card parameter information. Continues the alert: "Once inside, the hackers manipulate daily withdrawal amount limits, card balances and other card parameters to facilitate massive fraud on individual cards."

Meanwhile, US authorities have charged 18 people with creating thousands of fake identities to obtain credit cards and steal more than $200 million.

Yesterday morning, hundreds of FBI and the US Postal Inspection Service officers swooped and arrested 13 defendants and searched 13 locations in New Jersey, New York, Pennsylvania, and Connecticut in a bid to take down what authorities call a "sprawling criminal enterprise".

The defendants charged in a complaint unsealed yesterday allegedly fabricated identities to obtain credits cards and doctored credit reports to pump up the spending and borrowing power associated with the cards.

They would then borrow or spend as much as they could and not repay the debts, looting businesses and financial institutions of more than $200 million in confirmed losses.

All the defendants are charged with one count of bank fraud, which carries a maximum potential penalty of 30 years in prison and a fine of $1 million.

US Attorney Paul Fishman says: "Through their greed and their arrogance, the individuals arrested today and their conspirators allegedly harmed not only the credit card issuers, but everyone who deals with increased interest rates and fees because of the money sucked out of the system by criminals acting in fraud rings like this one."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

EU card fraud nets organised crime EUR1.5bn a year - Europol

EU card fraud nets organised crime EUR1.5bn a year - Europol

08 January 2013  |  10858 views  |  1 comments | 16 tweets | 3 linkedin
Gone in 60 seconds: Casino scammers lift $1 million from Citibank kiosks

Gone in 60 seconds: Casino scammers lift $1 million from Citibank kiosks

31 October 2012  |  9963 views  |  0 comments | 13 tweets | 8 linkedin
Global card fraud continues to rise - survey

Global card fraud continues to rise - survey

16 October 2012  |  10559 views  |  4 comments | 2 tweets | 2 linkedin
Mounties bust C$100m card fraud ring

Mounties bust C$100m card fraud ring

11 May 2012  |  9492 views  |  0 comments
RBS WorldPay hacker's property auctioned off

RBS WorldPay hacker's property auctioned off

21 September 2011  |  7014 views  |  0 comments
Russian hacker pleads guilty over $9m RBS WorldPay heist

Russian hacker pleads guilty over $9m RBS WorldPay heist

08 February 2011  |  11543 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comFind out moreVisit www.abe-eba.eu

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9614 views comments | 10 tweets | 4 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
6838 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6052 views 0 | 6 tweets | 8 linkedin
UK and South Korea build 'fintech bridge'UK and South Korea build 'fintech bridge'
5984 views comments | 13 tweets | 14 linkedin
Finextra paper explores blockchain as an enabler of operational resilienceFinextra paper explores blockchain as an e...
5448 views comments | 12 tweets | 9 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job