Feeds

Web porn credit card scam – biggest ever

Man charged with $50m fraud

  • alert
  • submit to reddit

The essential guide to IT transformation

A man is due to appear before a federal judge in Los Angeles today, accused of masterminding what is believed to be the biggest credit card scam in history.

Kenneth Taves, 47, allegedly "earned" $49.4 million last year before concealing it in an offshore bank account in the Cayman Islands.

Federal financial sleuths are still trying to track down a further $23 million believed to be stockpiled elsewhere around the world.

While some of the money was generated from legitimate charges for access to porn sites run by Taves' company, Netfill, how he got the rest of the cash is still a mystery.

The report in the LA Times quotes one officer from the Federal Trade Commission (FTC) as saying "the extent of the alleged scam was 'off the scales'."

Taves is alleged to have taken the money from as many as 900,000 different credit card accounts.

The LA Times said he possessed a further million credit card numbers.

What's still unclear is how Taves managed to get hold of so many credit card numbers in the first place.

No doubt some would have been skimmed off from people who were prepared to disclose personal details and pay for a bit of nooky online.

It’s thought the rest came from a number-generating application available somewhere on the Net.

What is perhaps more unclear is how the major credit card companies caught up on the scam failed to take any action when so many people complained that about the billing arrangements of one single company.

Taves, who will be accompanied by his wife Teresa at today's hearing, is no stranger to trouble. In 1980 he was charged with murder but escaped with a probationary sentence after a key witness died in a car crash before the case came to trial. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?