We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

Authorities catch cyber crime ring in £1.74 million fraud


More than 2,000 victims lost money in the scheme since 2005

Article comments

US federal authorities disrupted a crime ring using fake websites and online adverts to lure thousands of victims into their loan-fraud scheme that robbed them of millions of pounds.

A federal grand jury in Buffalo yesterday returned a 62-count indictment against 32 defendants residing in Michigan, New York and Canada accused of defrauding what could be more than 2,000 victims who lost £1.74 million ($2.7 million) in a loan-fraud scheme carried out since 2005. It was all based on fake Internet advertising that often mimicked the names of actual financial firms to make it seem legitimate.

Federal authorities yesterday said they've arrested 10 of the defendants, though others are at large, charging them with conspiracy to commit wire fraud and launder money.

"As a result of this investigation by Homeland Security Investigations, a major international criminal network has been disrupted," said John Morton, director of US Immigration and Customs Enforcement, whose Homeland Security Investigations (HIS) division in Buffalo, NY went after the online crime ring with help from the US Attorney's Office in the Western District of New York.

The ring allegedly fooled loan applicants through numerous websites and search engines to get them to apply for loans, then told them they were approved, then directed them to make an initial security deposit payment through Western Union to money couriers so the crooks could get the victim's funds. But the victims never received loans or refunds of their money.

When victims realised they had been scammed, the crime ring operating the websites abandoned the old sites for new fictional companies, with online listings that included fake addresses.

The US government is seeking the arrest of other defendants in Canada under international treaties, and all the defendants could face 20 years in prison or more, a £161,311 ($250,000) fine and other penalties, if convicted in federal court. One defendant has already pleaded guilty to wire fraud and is scheduled to be sentenced in August.

Share:

Recommended Articles

Comments

Authorities catch cyber crime ring in £1.74 million fraud
Risk

How Nokia helped and hindered Microsoft's earnings

How Nokia helped and hindered Microsoft's earnings

The Nokia Devices and Services business helped boost Microsoft's revenue, but hurt profitsmore ..


Fraudsters get younger as tech savvy youth fund extravagant lifestyles

“Youth doesn’t always equal innocence” says KPMG fraud expertmore ..

UK profit warnings hit a three-year high

Rising competition, pricing pressures and the pound’s rise were to blame for reducing corporate profits, EY saidmore ..

SEC drops probe into Facebook's pre-IPO sales disclosures

The agency told Facebook that no enforcement action will be taken, the company said in a filingmore ..

Can shaky cyber security scupper an M&A deal?

In M&A a cyber attack on a target company could have a material impact on its valuemore ..

Why CFOs are changing their thinking on sustainability

Pernod Ricard CFO Gilles Bogaert has nailed his 'green' colours to the mastmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *