Home News News Blog Indictments Announced in $200 Million Credit Card Fraud Scheme

Indictments Announced in $200 Million Credit Card Fraud Scheme

Today, hundreds of law enforcement officers from the FBI and the U.S. Postal Inspection Service arrested 13 people in four states for their alleged participation in an international criminal scheme to create thousands of phony identities, fraudulently obtain tens of thousands of credit cards, and steal millions of dollars. It was one of the largest credit card fraud schemes ever charged by the Department of Justice.

Feb 05, 2013 04:30 PM

Indictments Announced in $200 Million Credit Card Fraud Scheme

Credit CardsToday, hundreds of law enforcement officers from the FBI and the U.S. Postal Inspection Service arrested 13 people in four states for their alleged participation in an international criminal scheme to create thousands of phony identities, fraudulently obtain tens of thousands of credit cards, and steal millions of dollars. It was one of the largest credit card fraud schemes ever charged by the Department of Justice.

The scheme involved a three-step process in which the defendants would:

  • Make up a false identify by creating phony identification documents and a fraudulent credit profile with the major credit bureau.
  • Pump up the credit of the false identity by providing false information about that identity’s creditworthiness to the credit bureau.
  • Run up large loans using the false identity (the higher the fraudulent credit score, the larger the loans the defendants could obtain).

After obtaining loans, the conspirators wired millions of dollars overseas. Due to the massive scope of the conspiracy, which involved over 25,000 fraudulent credit cards, loss calculations are ongoing—final figures may surpass the present confirmed losses of more than $200 million.

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