Apple-Focused Crime Ring Busted: Police Call It Largest Identity Fraud Case In U.S. History

By Aman Ali, NEW YORK (Reuters) - A New York-based crime ring that used forged credit cards to mainly buy and resell Apple products overseas has been busted, police said on Friday in what was described as the largest identity fraud case in U.S. history.

Authorities said waiters and service sector workers stole customers' personal information and syndicates in Africa, the Middle East, Europe and Asia then used the data to issue credit cards that financed an estimated $13 million shopping spree.

"The schemes and the imagination of these thieves is mind-boggling," New York City Police Commissioner Raymond Kelly said at a press conference.

"These crimes are getting more sophisticated and thieves have amazing knowledge of how to use technology," Kelly said.

A total of 111 people from five criminal enterprises operating out of Queens, New York were indicted with identity theft, forgery, robbery and other crimes as part of a two-year investigation dubbed "Operation Swiper," police said.

They said crime bosses received blank credit cards from suppliers in Russia, Libya, Lebanon and China and hired "skimmers" to pose as retail workers who used electronic devices to steal the credit card data from customers.

The information was then programed into the magnetic strips of blank credit cards, according to the indictment. In some cases, printing machines were used to forge credit cards and matching state drivers licenses.

Police said "crew leaders" oversaw the illicit nationwide shopping and that the goods purchased were mostly resold to customers overseas. The thieves, however, apparently focused on Apple products.

"This is primarily an Apple case," New York Police Department Deputy Inspector Gregory Antonsen said. "Apple is a big ticket item and a very easy sell."

Police seized Apple products worth tens of thousands of dollars, $850,000 worth of stolen computer equipment, $650,000 in cash, handguns and a truck full of electronics, designer shoes, watches, identity theft equipment and other goods.

The enterprise was worth an estimated $13 million, according to police, who said they used court-approved wiretaps on dozens of phones to build their case. Detectives spent hours translating conversations in Russian, Mandarin and Arabic as part of the probe.

Eighty-six of the 111 people indicted for the crimes were in custody, police said.

(Editing by Paul Simao)
Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[JustinP213]

10:43 AM on 10/10/2011

Good job NYPD

[ur2nutty4me]

05:43 AM on 10/10/2011

What's the surprise..........Other then Wall Street employees and executive bankers how else is one to afford living in New York.......................

Largest identity fraud theft................I seriously doubt it.

Maybe if these people had job prospects less of it would happen......................

[SteveDenver]

09:21 AM on 10/09/2011

I visited New Zealand two years ago and only once did my card leave my sight when it was being swiped in a restaurant. Almost a year later, my bank called to ask if numerous charges in New Zealand were mine, since numerous charges had tried to clear my account, but were denied.

I had opened a second checking account for travel and would electronically load it with funds from the first. Only once did I desire to make a charge, but hadn't loaded enough money into the account. I was advised to do this by a businessperson who travels a lot. She said the small annual fee on the checking account and debit card was a small price compared to the headache that can accompany a disputed ripoff. I agree.

[zooperman]

09:20 AM on 10/09/2011

In europe, the waitstaff swipes credit cards at the tables with a handheld gizmo. Smarter system.

[ConnieContassa]

05:17 AM on 10/09/2011

This crime ring has awesome taste! :D

[littlebrowngirl]

09:53 PM on 10/08/2011

A waiter at a local resturant skimmed my credit card. Spent 1500 dollars before the bank froze the card and called me.

Now, I never let my card out of my sight. I pay cash if needed.

[1LTUSMC]

03:15 AM on 10/09/2011

Did the bank make you whole? Similar situation for me $950 worth of take out Chinese food and pizza to same address in three days. I lost nothing and had the money back in my account in less than 23 hours.

[SteveDenver]

09:23 AM on 10/09/2011

Both of your situations illustrate the stupidity of many credit card thieves.
If the thieves rounded up numerous cards and only charged $30–50 per month on the card, it might never be caught in the case of people who don't keep careful track of how they spend.

[Richard Genco]

09:02 PM on 10/08/2011

I see those darn Irishmen are at it again.