Feeds

Massive ID fraud and cheque scam busted in NYC

Impersonation scheme sees 18 bank workers pinched

Using blade systems to cut costs and sharpen efficiencies

A corporate identity theft ring that exploited the identities of local corporations, religious institutions, hospitals and even schools to run a cheque fraud scam has been busted in New York.

Investigators reckon the gang of 18 suspects made millions by impersonating workers from an estimated 350 New York-based organisations. Data purchased from corrupt bank insiders was used to lay the groundwork for the scam, which relied on cashing thousands of counterfeit payroll cheques. The fraudsters also plundered the bank accounts of individual victims, using data obtained from corrupt bank insiders to transfer funds to banks under the control of the gang.

Mules were recruited as payees on the counterfeit cheques, which were forged using scanners, cheque stock, magnetic ink, company logos and specialist software. The scam ran between October 2007 and February 2009. One bank alone lost $1.4m through the scam.

The gang was led by alleged masterminds Jasper Grayson, 25, and James Malloy, 26, according to an indictment unsealed this week. Renece Razor, a former teller at a JP Morgan Chase Bank branch in Manhattan, Ilaura Walker, a former worker at a TD Bank branch in Manhattan, and Keisha Polonio, a former clerk at an HSBC Bank branch in the Bronx, are all charged with stealing the personal data of identity theft victims before supplying the details to other members of the gang.

Police are investigating the possible involvement of other suspected bank workers in the scam as part of the ongoing investigation. ®

Boost IT visibility and business value

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
Israel's Iron Dome missile tech stolen by Chinese hackers
Corporate raiders Comment Crew fingered for attacks
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
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
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.
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.
Application security programs and practises
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.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.