Feeds

Men pocket $1.5m in alleged ATM skimming spree

Feds charge men with aggravated ID theft

The Power of One eBook: Top reasons to choose HP BladeSystem

Four men have been charged with stealing $1.5 million from banks by using electronic devices to secretly record personal identification numbers as customers entered them into automatic teller machines and other gear.

Most of the skimming devices used in the 14-month spree involved the use of fraudulent pads that customers use to enter their account PINs before engaging in a transaction with a teller. According to an indictment filed in federal court Monday, the men surreptitiously replaced PIN pads in at least seven banks in Manhattan, Chicago and the Miami area with identical-looking devices that recorded confidential data each time they were used. The compromised PIN pads were equipped with the ability for the stolen data to be accessed remotely.

The men also placed skimming devices on the card readers of automatic teller machines located in bank vestibules, according to the 14-page indictment. The two banks targeted were Citibank and JPMorgan Chase, prosecutors said.

After obtaining the confidential account information, the men “then encoded the stolen account information onto the magnetic stripes of blank plastic cards, such as store gift cards” and used the counterfeit cards to make unauthorized withdrawals from the accounts that corresponded to the purloined information. In all, the men pocketed at least $1.5 million in the scheme, which lasted from March 2010 to May, prosecutors said.

The indictment names Mihail Draghici, Ionel Dedulescu and Laurentiu Mugurel Manta, who were identified as citizens of Romainia. It also names Didi Theodor Ciulei, whom prosecutors said was a citizen of Austria. Ciulei and Manta were arrested on May 29 in Chicago. Draghici and Dedulescu were arrested in December at Miami International Airport while attempting to board an international flight.

All four are charged with one count each of conspiracy to commit bank fraud, conspiracy to commit access device fraud, and aggravated identity theft. Draghici and Dedulescu are additionally changed with bank fraud. If convicted, Draghici and Dedulescu face a maximum of 69 years in prison; Ciulei and Manta face a maximum of 62 years. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
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
BMW's ConnectedDrive falls over, bosses blame upgrade snafu
Traffic flows up 20% as motorway middle lanes miraculously unclog
LibreSSL RNG bug fix: What's all the forking fuss about, ask devs
Blow to bit-spitter 'tis but a flesh wound, claim team
Mozilla fixes CRITICAL security holes in Firefox, urges v31 upgrade
Misc memory hazards 'could be exploited' - and guess what, one's a Javascript vuln
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
Don't look, Snowden: Security biz chases Tails with zero-day flaws alert
Exodus vows not to sell secrets of whistleblower's favorite OS
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.