Police bust massive stolen card network worth $340 million
An international law enforcement operation dubbed “Chargeback” has targeted three fraud and money laundering networks, uncovering a global credit card fraud scheme that impacted millions of people.
After investigating the suspected scammers for three years, authorities struck simultaneously, conducting over 60 searches and arresting 18 people, Europol announced.
According to the authorities, the fraud network’s tentacles extended to every corner of the globe, with an estimated 4.3 million victims in 193 countries. The financial damages exceed €300 million ($344 million), while attempted damages amount to over €750 million ($861 million).
“Between 2016 and 2021, the suspects allegedly used stolen credit card data to create around 19 million fake online subscriptions on professionally operated websites, primarily offering pornography, dating, and streaming services,”
Europol said.
The operation was led by the Cybercrime Department of the General Prosecutor's Office in Koblenz, Germany, and the German Federal Criminal Police Office, with the help of Europol and several other nations.
Interestingly, suspects in the scheme include German payment service providers, intermediaries, crime-as-a-service providers, and independent risk managers. According to Europol, authorities secured assets worth €35 million ($40 million) during the investigation.
Europol believes that some suspects exploited the infrastructure of several major German payment services providers to process illicit transactions. Meanwhile, other suspects, who include executives and compliance officers, were accused of colluding with the fraud network, allowing access in exchange for fees.
The fraud network created a stable revenue stream for themselves by developing a long-term fraud scheme. Instead of siphoning funds via stolen details of credit cards, the operators would set up fake online subscription fees.
“Between 2016 and 2021, the suspects allegedly used stolen credit card data to create around 19 million fake online subscriptions on professionally operated websites, primarily offering pornography, dating, and streaming services,” Europol said.
These websites would often be hidden from search engines, accessible only via direct links. Meanwhile, the charge would be kept around €50 ($57) or lower, so as not to alert cardholders. At the same time, the payment descriptions would be deliberately obscure, making it difficult to identify transactions.
“To conceal their activities, the suspects used numerous shell companies, primarily registered in the UK and Cyprus. These companies were used to distribute the fraudulent transactions, minimizing the risk of chargebacks and detection," Europol said.
Law enforcement authorities took action on November 4th, after coordinated measures were enacted in multiple countries, including Germany, the USA, Canada, Singapore, Luxembourg, Cyprus, Spain, Italy, and the Netherlands.
“By leveraging our analytical capabilities and facilitating cross-border coordination, we have been able to bring down the networks defrauding millions of credit card users worldwide,” Catherine De Bolle, Europol’s Executive Director, said.
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