FRAUDULENT CARDS IN DISGUISE: LOOKS CAN BE DECEIVINGIt's difficult for officers to distinguish a legitimate card from one tied to illegal activities.
When it comes to payment card fraud, it often seems like law enforcement officers are fighting an uphill battle. With billions of dollars loaded on prepaid cards from narcotics, human smuggling, sex trafficking and terrorist funding, it’s obvious that modern day criminals are drawn to these plastic cards—and the numbers continue to skyrocket.
The problem is there’s no way for officers to distinguish the number on a prepaid card from a legitimate bank account. This is exactly what criminals are counting on; and it’s why these cards have become the preferred method for moving illegal funds. An increasingly large portion of these cards are being used to launder money tied to illegal or illicit activities.
How does it work? Criminals skim card information from unknowing consumers or buy stolen credit and debit card numbers on the Dark Web. They then transfer this info to other plastic cards, such as hotel room keys or even legitimate credit and bank debit cards. This makes detection and interrogation nearly impossible.
Virtually any plastic card with a magnetic stripe can be re-purposed as a credit, debit or prepaid card. Unlike bulk cash, when you confiscate plastic cards, determining the identity and value of the card is critical to your investigation. Without the proper tools to investigate and confiscate the funds from these plastic cards, criminals keep the money from prepaid cards and continue their illicit operations.
ERAD™ is working to put an end to this epidemic. Our state-of-the-art solutions are giving payment card fraud a run for its money.
Criminals can easily conceal stolen identities and cloned financial card information on a magnetic stripe.
Hard to Collect
Securing intelligence from payment cards obtained during an arrest is extremely difficult.
Difficult to Protect Funds
It’s extremely challenging to protect funds attached to a prepaid card. It can take weeks or months to accomplish, if ever.
It takes law enforcement countless hours to gather information, document the findings and put it in a consistent format prosecutors and judges can use.
TOUGH TO NOTIFY FINANCIAL INSTITUTIONS
Financial Institutions are losing billions of dollars each year from stolen cards. Yet, there is no quick and easy way to notify these intuitions when a law enforcement officer confiscates a stolen card—until now.
IRS, Last Updated August 3, 2017 The following examples of Identity Theft Investigations are written from public record documents on file in the courts within the judicial district where the cases ...
“Illegitimate cards:” Officials recover bundle of 1,300 gift cards; 700+ bought with stolen information
POSTED 10:15 PM, APRIL 15, 2017, BY DERICA WILLIAMS, UPDATED AT 10:27PM, APRIL 15, 2017 WAUKESHA COUNTY — Instead of a brick of drugs, stacks of gift cards possibly worth just as much were found...
POSTED 6:52 AM, APRIL 11, 2017, BY TRISHA BEE WAUKESHA — Waukesha authorities are investigating after 1,300 Walmart gift cards containing stolen credit card information were recovered. In Februa...
Carol Robinson, AL.com, March 2016 Three Cuban Nationals are in custody in connection with a credit card skimming/cloning scheme, Hoover police said today. The men were arrested March 21, said Hoov...
Department of Homeland Security, August 2015 During arrests of criminal couriers, law enforcement officers rarely find bundles of cash wrapped in rubber bands anymore. Instead, they find stacks of ...
Marc Santora, May 2013 It was a brazen bank heist, but a 21st-century version in which the criminals never wore ski masks, threatened a teller or set foot in a vault. In two precision operations th...
60 Minutes, Sept 2014 Con artists have been filing bogus tax returns and collecting millions. Steve Kroft finds out how far the scam has gone and why the IRS hasn’t been able to stop it. The follow...