Monday, June 4, 2007

ATM Skimmers Seized in Calgary Raid

Via canada.com (May 31st, 2007) -

The Calgary case started with a tip from the U.S. Secret Service in January 2006 about a man using the alias "Dron" and a now-defunct website called atmskimmer. com.

This crime does transcend borders," said Andrew Orringer, a Secret Service agent based in Ottawa.

"Co-operation is how these cases get solved."

The investigation is ongoing and investigators could lay more charges if they identify anyone who bought the skimming equipment.

The website sold false fronts that crooks could attach to legitimate bank machines. The facades concealed scanners that would capture a data from the magnetic strip on a customer's debit or credit card when it was inserted in the machine.

...

The Secret Service investigation traced the person behind the site to Calgary, but the culprit was able to use technology to conceal his identity and whereabouts.

"The real challenge was identifying the individual because he was using Internet cafes and (anonymous) e-mail addresses," Frizzell said.

"There were a number of locations and a fair bit of randomness to the locations."

The investigation eventually led police to a suite in the 900 block of 7th Avenue S.W. on Friday, where they seized $30,000 cash in addition to the electronics, blank credit cards, a combination of fake and stolen credit cards and ID, wiring, paint, plasticine and soldering tools.

The haul also included dozens of card slots, bank machine keypads and other parts investigators believe were bought, rather than made, by the suspect -- a prospect that troubles Frizzell.

"One has to wonder what verification process one has to go through to get their hands on this," he said.

Financial institutions in Canada refunded $95 million stolen from customers in fraudulent debit card transactions in 2006 -- an increase from $70 million over 2005.

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