Fergie's Tech Blog

NJ Prosecutor: Debit Card Crime Ring Busted

Greg Sandoval writes on C|Net News:

Law enforcement officials in New Jersey have arrested 14 people in connection with a crime spree that has forced banks across the nation to replace hundreds of thousands of debit cards.

The suspects, all U.S. citizens, are accused of using stolen credit and debit card information to produce counterfeit cards that were used to make fraudulent purchases and withdrawals from card-holder accounts, Hudson County Prosecutor Edward DeFazio said. Most of the arrests were made during the past two weeks.

Some of the stolen credit card information came from the office-supply chain OfficeMax as well as North Carolina's State Employees' Credit Union and other businesses, DeFazio told CNET News.com on Monday. "We had cooperation from the security people from many victimized businesses," he said.

Credit-card issuers Visa and MasterCard have blamed a growing number of thefts from debit-card holder accounts--in areas ranging from San Francisco to Boston--on a security breach suffered by a merchant, but they've refused to identify the company.

posted by Fergie @ 3/13/2006 08:06:00 PM