Recently, PandaLabs released a report showing how credit card information and full personal information is being bought and sold by highly organized criminals using phishing websites, e-mails, and fake ATMs. Last Wednesday, however, this story hit closer to home when 27 Brooklyn residents were indicted for using stolen credit card information to buy and resell Apple products for the crime ring S3.
According to a press release from the district attorney’s office, they purchased a batch of credit card information along with personal details like names and PINs. Using that information, they produced counterfeit credit cards and used them to buy iPads, MacBooks, iPods, and other pricy electronics from Apple stores across the country. The electronics were then resold in Brooklyn for a steep discount but yielding a huge profit for S3.
S3’s strategy was very similar to the strategy used by the identity theft crime rings. They would do most of the leg work getting the information and making the credit cards before hiring shoppers to take the risk of using the counterfeit cards and then reselling the items. Much like the mules who dealt with the money transfers, these shoppers are easy for the police to catch and arrest, but the crime ring can easily replace them.
There are three lessons that can be taken away from this unfortunate story. First, there is no such thing as a quick-and-easy way to get rich. Making money takes work, and those who choose to take these shortcuts to wealth will get caught. Second, do not buy electronics off the street or from an unknown source. Even if your discount iPad works fine, it was probably obtained illegally. Finally, take steps to protect your personal information and credit card information. Shred documents with your credit card number, bank account number, or other financial information, and keep an eye on your credit report for unusual activity.
To learn more about responsible credit card use, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.