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Canada NonVBV CC

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FBI: Three more defendants were apprehended for “carding” crimes in Canada, India, and the United States.

Preet Bharara, the United States Attorney for the Southern District of New York, and Janice K. Fedarcyk, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced today that three more arrests had been made as a result of the largest-ever coordinated international law enforcement effort against “carding” crimes—crimes in which stolen credit cards, bank accounts, and other items are used to trade and profit online.

 

On June 26, 2010, 24 people were detained as part of a coordinated international operation involving more than 12 nations. Eleven people were detained by federal, state, and local authorities in the United States, while 13 people were detained by law enforcement abroad in seven different nations. Three more people have been detained on federal charges in the Southern District of New York since the June 26 takedown, bringing the total number of arrests to 27. Eric Bogle, also known as “Swat Runs Train,” was detained on July 2, 2012, by Canadian authorities in Red Deer, Alberta; Justin Mills, also known as “xTGxKAKAROT,” was detained on June 27, 2012, by the FBI in Aurora, Colorado. Nikhil Kolbekar, also known as “HellsAngel,” was detained by Indian authorities today in Mumbai, India. Mills made an appearance in federal court in Manhattan Friday and was granted bail. Kolbekar and Bogle will be sought for for extradition to the US in order to face charges.

 

“These arrests are again another reminder that the international reach of cybercrime does not surpass our grasp,” said Manhattan U.S. Attorney Preet Bharara. Wherever they go, cybercriminals will be tracked down by law enforcement. Together with the offences we prosecuted last month, the activity for which we have today filed charges represents the whole spectrum of online fraud. We continue to bring these alleged offenders to justice because of our ties with law enforcement both domestically and overseas.

These arrests as part of Operation Card Shop in India, Canada, and the United States are yet another illustration that cybercriminals will be stopped even if they transcend international borders, according to FBI Assistant Director in Charge Janice K. Fedarcyk. An multinational investigation called Operation Card Shop targets highly skilled and coordinated cybercriminals who trade in stolen identities, compromised credit cards, forgeries, and advanced hacking tools. The FBI and all of our law enforcement partners, both here and internationally, will keep looking for criminal activity online.

 

Based on the accusations that were previously unsealed in federal court in Manhattan, the following allegations are made:

 

History of Carding Crimes

Carding describes a number of illegal activities involving the theft of another person’s financial and personal information, including account information from credit cards, bank cards, debit cards, or other access devices, and the use of that information to obtain money, goods, or services without the victim’s knowledge or consent. For instance, a thief could access (or hack) a database kept on a computer server without authorisation and steal credit card numbers and other personal data kept in that database.

The criminal can then use the information they have stolen to do a variety of things, including: make fake identification documents that can be used to make fraudulent purchases easier; purchase goods or services online; create counterfeit credit cards by encoding them with the stolen account information; or sell the information to others who plan to use it for illegal activities. Carding is the collective term for the aforementioned illegal conduct, which includes a number of federal charges such as wire fraud, aggravated identity theft, access device fraud, and document fraud.

 

Websites called “carding forums” are used by carders (criminals) to facilitate their criminal behaviour. To buy and sell goods and services related to carding, such as stolen credit or debit card account numbers, hardware for creating counterfeit credit or debit cards, or goods purchased with a compromised credit card or debit card, carders use online forums. These forums are used for a variety of purposes, including the exchange of information related to carding, such as information about hacking techniques or computer security vulnerabilities that could be used to obtain personal identification information. Carding forums frequently allow members to publish public messages, also known as “threads,” which can be seen by all visitors to the site.

For instance, a person who has credit card information that were stolen may publish a public discussion in which they are being offered for sale. Carding forums frequently allow users to converse privately using “private messages.” Access is usually restricted to prevent law enforcement surveillance because carding forums are essentially black market marketplaces. Typically, a potential user who wants to join a carding community can only do so if other, more experienced users “vouch” for them, or if they pay a fee to the forum’s administrators. Usernames are often used to identify user accounts, whereas passwords are used to limit access. On such forums, users of carding frequently use aliases or online nicknames (or “nics”) to identify themselves.

 

When using stolen credit card information to make online purchases, people are frequently hesitant to have the items delivered to their own homes for fear that the purchases could be easily tracked by law enforcement. To avoid leaving traces of their involvement in the shipment, carders frequently look for “drop addresses”—addresses they have no connection to, like empty homes or apartments—where carded products can be transported and collected. Some users of carding communities offered “drop services” to other forum users, typically in exchange for payment.

An arrangement known as a “1-to-1” is one that is frequently used as payment. Under this arrangement, the carder shipping to the drop must send two of the items he has carded: one for the drop provider to forwards to the carder and the other for the drop provider to keep as payment in kind for the carder’s use of the drop. Another common form of payment is for the carder and drop provider to agree to resell the carded goods delivered to the drop and divide the revenue.