NSW crime gang using eBay, online auction sites to launder credit card frauds
A NSW based crime syndicate has been using eBay and other online auction sites to launder the proceeds of a major credit-card fraud.
The syndicate is alleged to have bought more than $4.5million of goods using cards created with stolen card numbers.
Computers, iPods, cameras expensive wines and other goods were amongst the items Police found in raids of properties in Sydney’s inner western suburb earlier this week.
So too were power tools and other readily disposable items the syndicate was selling at discounted prices.
Both fake cards and fake drivers licences were found in the raids.
Assistant Commissioner Catherine Burn said that the syndicate had been in operation for some time. She said it was believed to have sold more than 6000 items, in total, raising more than $1.3 million in proceeds.
A 27 year old Concord man, and a 30 year old Rydalmere man were both arrested in connection with the fraud. They were denied bail and due to appear in court today charged with two counts of
“knowingly dealing with proceeds of crime.
"We further allege those behind the operation laundered the proceeds of a fraudulent credit card racket, stealing from the accounts of innocent people and then filtering the money through
unsuspecting online shopping sites," Ms Burn said.
NSW Police last month set up a special squad to investigate the crimes, which they called Strike Force Bachelor, following reports of heavily discounted store gift cards being offered for sale on eBay.
It isn’t yet clear how the criminals stole the card numbers they used to make fake credit-cards.
An official Police media statement said only that the card numbers were either skimmed or stolen.
But the news of yet another credit-card security breach involving online shopping is a cause for concern for all online businesses.
Coming hard on the heels of the Bottle Domains security breach, the news will inevitably increase consumers’ anxiety over the safety of online shopping with a credit-card.
If that increased anxiety stops consumers from shopping online as readily or as freely as they would normally, then ecommerce businesses and online merchants as a whole will suffer.
That may be unfair, because official statistics show online shops are a safer place to use a credit-card than most.
But it is a reality, and why eCommerce Report has been trying to get further information this week about the card security breach at Bottle Domains.
An Australian Federal Police spokesman was unable to comment on the question of whether or not
the 22 year old Perth man arrested and charged over the Bottle hacking was successful in his attempt to selling the database online.
If he did succeed, then the card account details it contained may have ‘escaped’ and been used to create bogus cards - such as those made by the crime syndicate busted by Strike Force Bachelor.
That’s obviously speculative at this point, but with the NAB having last week confirmed that a small number of Bottle customers cards have already been hit by fraud, its hardly unfounded speculation.
The AFP spokesman was able to confirm, however, that the man charged with the Bottle hack has been released on bail.
He also confirmed that the offence he has been charged with is an offence under Commonwealth law.
Bottle CEO, Andrew Steven, told eCommerce Report by email this week that our article was largely unfounded speculation.
But it was unclear which of our article’s he was referring to.
Steven has, however, promised to provide eCommerce Report a statement.
For more information go to
www.police.nsw.gov.au
www.ecommercereport.com.au/story83.php
www.auda.org.au
www.bottledomains.com.au
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