Posted on 05/10/2013 3:33:57 AM PDT by SkyPilot
A worldwide gang of criminals stole $45 million in a matter of hours by hacking their way into a database of prepaid debit cards and then draining cash machines around the globe, federal prosecutors said Thursday — and outmoded U.S. card technology may be partly to blame.
Seven people are under arrest in the U.S. in connection with the case, which prosecutors said involved thousands of thefts from ATMs using bogus magnetic swipe cards carrying information from Middle Eastern banks. The fraudsters moved with astounding speed to loot financial institutions around the world, working in cells including one in New York, Brooklyn U.S. Attorney Loretta Lynch said.
She called it "a massive 21st-century bank heist" carried out by brazen thieves.
One of the suspects was caught on surveillance cameras, his backpack increasingly loaded down with cash, authorities said. Others took photos of themselves with giant wads of bills as they made their way up and down Manhattan.
Here's how it worked:
Hackers got into bank databases, eliminated withdrawal limits on pre-paid debit cards and created access codes. Others loaded that data onto any plastic card with a magnetic stripe — an old hotel key card or an expired credit card worked fine as long as it carried the account data and correct access codes.
A network of operatives then fanned out to rapidly withdraw money in multiple cities, authorities said. The cells would take a cut of the money, then launder it through expensive purchases or ship it wholesale to the global ringleaders. Lynch didn't say where they were located.
(Excerpt) Read more at news.yahoo.com ...
From the article:
Some of the fault lies with the ubiquitous magnetic strips on the back of the cards. The rest of the world has largely abandoned cards with magnetic strips in favor of ones with built-in chips that are nearly impossible to copy. But because U.S. banks and merchants have stuck to cards with magnetic strips, they are still accepted around the world.
Eventually, the chip will no longer be imbedded in your card, but on a body part where you have soft tissue.
...coming to a savings account & retirement account soon.
The chip implant is in the ObamaCare bill.
My humble guess is that we are looking at simple episode one of dozens of ATM card episodes. I’d predict that the magnetic strip does disappear within three years...they won’t be able to hold off the bad guys. As for the various charges and 19-percent interest payments? All necessary because of episodes like this.
Good work if you can get it.
But let’s hope they catch everyone responsible and string them up by their cojones.
ILLEGALS?
Crime: the crossroads of egomania and laziness.
Do I understand the loss was incurred by middle eastern banks? Hmm, I should be better than my current feelings suggest.
Meanwhile an even more audacious global theft ring has been uncovered, which is led by a Mister Bernake ...
Why doesn’t it concern anyone that there is a mysterious international gang, that was able to organize withing HOURS to steel 45$ million from ATM’s all ove the world. The United States Army can’t even organize international ops like that. Who the freak are these people, and why have we NEVER heard of them, and why the lack of info?
Looks like it may be a good time too invest in RFID chip manufacturers for credit and bank cards. Short those companies that manufactuer magnetic stripe readers and you have a double whammy.
Is that you George Soros? Are you the megalomaniac ring leader of this mysterious international crime ring? Haha wouldn’t surprise me.
Because banks are not in the business of protecting assets, only charging fees to transfer them from one account to another.
The sub-prime mortgage scam is a good example of this.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.