Feeds

Police arrest first Heartland suspects

$100K gift card scam unpicked

Seven Steps to Software Security

Three Florida-based men have been charged with credit card fraud following the first arrests connected with the hacking attack against payment processor Heartland Payment Systems.

The trio - Tony Acreus, Jeremy Frazier, both 20, and Timothy John, 21 - are accused of using stolen card details to "electronically encode Visa Gift Cards". These vouchers were allegedly used to buy goods, subsequent ally sold for cash, at local Wal-Mart stores and elsewhere around Tallahassee.

Police estimate the scam involved more than $100,000 in fraudulent transactions. Each man is charged with credit card fraud and grand theft.

Arrests of the three suspects followed a three month investigation involving Leon County, Florida Sheriff's office, the Tallahassee Police Department and the US Secret Service, a statement (pdf) explains:

Acreus, Frazier and Johns have been using stolen credit card numbers to electronically encode VISA Gift Cards which were then used to make fraudulent purchases at local businesses, including several Tallahassee Wal-Marts. The group would then sell the fraudulently obtained merchandise for cash. The stolen credit card numbers utilized by the group were stolen in an international computer hijacking of records from the Heartland Processing Center in New Jersey.

The total actual and declined fraudulent transaction in Leon County is currently in excess of $100,000. This amount is expected to be much higher as this investigation continues.

Further arrests may follow as the investigation continues. The three suspects are likely to be leaned on heavily for information on how they obtained the allegedly stolen card details.

BankInfoSecurity.com, which broke the story of the arrests, reckons the number of banks affected by the Heartland breach stands at more than 220. Heartland admitted in January that a malware-related security breach in its processing systems last year which resulted in the disclosure of an unspecified number of customer records.

The firm hasn't said how many records were exposed.

But since Heartland handles 100m transactions a month on behalf of 250,000 merchants, and considering the nature of the breach, the number of exposed records is likely to be huge and might even rival that of the infamous TJX breach. ®

Mobile application security vulnerability report

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
NEW, SINISTER web tracking tech fingerprints your computer by making it draw
Have you been on YouPorn lately, perhaps? White House website?
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Attackers raid SWISS BANKS with DNS and malware bombs
'Retefe' trojan uses clever spin on old attacks to grant total control of bank accounts
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.