Individuals Plead Guilty to Embezzling Over $3.5M via Purchases with Stolen Accounts
ARLINGTON, Va. – Nov. 12, 2019 – Airlines Reporting Corp. (ARC) assisted the U.S. Secret Service in breaking up and bringing to justice a sophisticated group of credit card fraudsters involved in a multimillion-dollar conspiracy. As reported recently by the U.S. Department of Justice, six individuals pleaded guilty in federal court in Newark, New Jersey, to obtaining over 4,000 stolen credit card accounts from the “dark web” and making fraudulent purchases of goods and services totaling over $3.5 million.
Using the company’s advanced fraud analytics technology, ARC’s fraud investigation team detected a pattern of suspicious airline ticket purchases using compromised credit cards. ARC alerted the National Cyber-Forensics and Training Alliance (NCFTA), which, in turn, notified the Secret Service and triggered the investigation. ARC supported the Secret Service in the inquiry by continuing to monitor air ticket purchase patterns linked to the suspected fraudsters.
According to the DOJ, from 2015 through 2018, a fraud ring based in the New Jersey/New York area made trips around the U.S. to purchase gift cards, flights, hotels, rental cars, and luxury goods using stolen credit card information. The group’s leader then sold the gift cards and luxury goods for cash and distributed a percentage of the take to each group member.
“ARC is dedicated to pursuing and disrupting fraudsters, and we are grateful for the hard work and outstanding investigation provided by the Secret Service and DOJ,” said Doug Nass, ARC’s director of fraud investigation. “The conspirators in this case left a trail of financial destruction in their wake. ARC was proud to furnish the support that shut down this fraud ring, which is an example of the threats the travel industry faces daily.”
Travel agencies are a vital component in ARC’s fight against fraud by providing tips that help the entire community to remain a safe place to conduct business. Agencies are encouraged to contact ARC about possible fraud incidents by emailing [email protected] or calling 855-358-0393. Visit ARC’s website to view fraud mitigation resourcesand webinars for the global travel community.