18 suspects charged in apparent $200M credit card scam
Fake accounts used to secure loans
- Duration 3:02
- Date Feb 7, 2013
Fake accounts used to secure loans
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Major credit card fraud -- to New Jersey now investigators say eighteen suspects.
Managed to -- their way to at least 200 million dollars in cash.
Millions of dollars wired to Pakistan India China and others.
The suspects now under arrest and in court and here's how the feds say they did it the suspect would open credit card accounts from people who don't even exist.
And in -- and false papers to boost those nonexistent people's credit scores.
And once they secured the big loads on these people who didn't exist that -- repaid them.
According to investigators the suspect spent the money on spot treatments electronics and millions of dollars and go.
You'll see in the complaint that 68000 dollars in cash was seized from just one defendant's house during an earlier search warrant.
Executed part of this case -- money was hidden in the kitchen stove.
That lead attorney said the suspects triggered higher interest rates and fees for everybody else.
And account for the money that got sucked out of the system at least three of the suspects have pleaded guilty.
Cyber crime a technology analyst Morgan writes with the snow Morgan high.
I ship while this is this is a big -- if if I knew all you had to do was make up somebody -- -- fake fake fake papers out of -- -- -- this long time ago.
-- -- I would be having this conversation around -- what the world look.
Well look when we tell when I talked can -- your producer the first thing that's jumped out -- me be on the fraud.
When I look at the country's UAE and Pakistan especially in the country of origin of many of the suspects.
First thought the jumped -- -- me his words this money going and this has a clear hallmark of financing terrorists are not that was one of my biggest concerns about that.
It's yet we don't know we don't know to what extent that may or may not be the truth but we do know that.
We using what seems like some very simple means they were able to get to 200 million dollars at that's not a good sign.
-- it what it -- it actually expose the weakness now the Big Three credit unions about how easy it is now to perpetrate not only create a fake identity.
But build up the legend around this identity give them a huge great credit score.
And these folks run up the bill and then they -- just like in a restaurant run up the bill get a lot of good stuff and leave without paying.
And that's what they did to the -- like you -- of 200 -- -- 200 million dollars the one the one thing about leaving a restaurant without paying is.
A few days later some -- into the same thing can this happen again it is their way to stop this.
-- it not only can it happen again it's happening right now in fact one of the defendants in this case pled guilty on and on related case but the same techniques.
Back in January of this year in the northern district of California for identity theft and wire fraud so that this is something that unfortunately is easy to perpetrate.
The only good thing to come out of this is that because it did exposed some flaws and some weaknesses in the credit system and how to -- credit lines are established.
And off -- users put on there.
It means that they'll be better fraud detection and better capability to detect.
This type of massive scheme but this is the death of a thousand cuts it wasn't one big theft it was a series of small -- that added up over time.
Got to 200 million while that's huge Morgan right hard to believe thanks so much.