Five Indians charged with credit card fraud in US

US federal prosecutors have charged 18 people, including at least five Indians, in one of the largest credit card fraud schemes spanning 28 states and eight countries, including India.

hidden February 06, 2013 14:51:51 IST
Five Indians charged with credit card fraud in US

New Jersey: US federal prosecutors have charged 18 people, including at least five Indians, in one of the largest credit card fraud schemes spanning 28 states and eight countries, including India.

Using over 25,000 fraudulent credit cards, the accused wired millions of dollars to Pakistan, India, the United Arab Emirates, Canada, Romania, China and Japan leading to losses of more than $200 million, prosecutors said.

"The defendants are part of a massive international fraud enterprise involving thousands of false identities, fraudulent identification documents, doctored credit reports and more than $200 million in confirmed losses," FBI Special Agent James Simpson said in court records.

Five Indians charged with credit card fraud in US

AFP

According to court records, the scheme involved three basic steps: The defendants allegedly created thousands of fake identities, pumped up the credit histories of those fictitious people and then racked up charges on fraudulently obtained credit cards.

The proceeds, authorities said, were used for luxury automobiles, electronics, spa treatments, high-end clothing and millions of dollars in gold. Authorities said the fraudsters also stockpiled large sums of cash and approximately $70,000 in cash was found in one defendant's oven.

Though the scheme targeted credit card companies, Paul Fishman, US Attorney for New Jersey, said customers everywhere could feel the impact.

"Through their greed and their arrogance, the individuals arrested today and their conspirators allegedly harmed not only the credit card issuers, but everyone who deals with increased interest rates and fees because of the money sucked out of the system by criminals acting in fraud rings like this one," Fishman said.

The defendants, including the alleged ringleaders, Babar Qureshi and Muhammad Shafiq, are due to make their initial court appearances before US Magistrate Judge Madeline Cox Arleo in a Newark federal court Wednesday.

IANS

Updated Date:

also read

To combat fraud, Visa wants to track your smartphone
News & Analysis

To combat fraud, Visa wants to track your smartphone

The payment processing company Visa will roll out a new feature this spring that will allow its cardholders to inform their banks where they are automatically, using the location function found in nearly every smartphone.

Here's the latest type of credit card fraud
Investing

Here's the latest type of credit card fraud

Given the increase in credit credits and the proportionate rise in types of frauds attached to them, there is no harm in assuming that credit cards are the mother of greed. Here is an addition to the list.

US: Indian pleads guilty in $200 mn credit card fraud scheme
World

US: Indian pleads guilty in $200 mn credit card fraud scheme

An Indian businessman, involved in $200 million credit card fraud schemes, has pleaded guilty to his role in the conspiracy and now faces a penalty of 15 years in prison.