Illegal ATM Code Scanning Scam Uncovered At Arco Stations [CA, worldwide?]

KTVU ^ | 10:14 am PST January 31, 2006 | KTVU

[xcamel]

AUBURN, Calif. -- Thieves attached an illegal scanning device to gas pumps at Arco stations from Sacramento to Redding, then used the data to steal at least $110,000 from automatic teller machines, the Placer County Sheriff's Department said.

The discreet black plastic faceplates were attached to debit card readers at ampm stations to capture card data, and a tiny camera recorded users typing in their PIN numbers, said Sheriff's Lt. George Malim.

The scheme was uncovered after Yuba County Sheriff's detectives notified the Secret Service on Jan. 23 that they received multiple, similar reports of identity theft, according to an affidavit filed with a federal judge on Friday. The victims all reported using a debit card at a gas station in Linda, then found money had been withdrawn from their accounts at an ATM in Thunder Valley Casino in Lincoln.

Investigators reviewed surveillance tapes from the casino and arrested alleged ring leader Claudiu Hotea, 32, and associate Emanuel Moldoveanu, 34, on suspicion of burglary, conspiracy and possession of forged access cards. Moldoveanu posted $200,000 bail Saturday.

Investigators reported that when they arrested Hotea at the casino, he had five Starbucks gift cards with victims' debit card numbers encoded in their plastic strips. They are still looking for people whose information may have been stolen at stations in Linda, Rocklin, Roseville, Redding, Oroville, Yuba City, Willows and Sacramento.

Placer County Sheriff's Detective Jim Hudson said the case is the most sophisticated he's seen.

Arco spokesman Phil Cochrane said employees are now monitoring card readers more frequently.

[snowsislander]

It's a tad deceptive, they're finding this setup all over the place.

That's correct; this type of ATM theft also been going on for quite a while, and not just in the U.S. For instance, here is a Snopes page from 2002 on the subject.

Maybe we will finally see a swing back to more folks using cash.

[AmericaUnited]

Investigators reviewed surveillance tapes from the casino and arrested alleged ring leader Claudiu Hotea

Can you say 'dumb' or what? This person uses a VIDEO camera to capture the pin, and then shows a total unawareness of a video surveillance camera which is what leads to their arrest.

"He who lives by the swrod, dies by the sword."

[FreedomPoster]

Concur. I like cash, personally. And I hate using an ATM that's not my bank's, and keep an eye on those for hardware add-ons.

[csvset]

I still can't figure out why people use debit cards.

Funny you should mention that. A few days ago, on a different thread, posters were cursing "check writers" as they were the cause of all that was wrong with the world. Nary a ill word about their beloved debit cards.

[Eepsy]

The checking account I pay my bills from is not connected to the checking account I use my debit card with, and my savings account is at a completely different bank altogether. With all the possibilities for fraud, it's too risky to keep all your money in one place.

[xcamel]

Agreed, if you spread it around, no one can get to all of it in one shot.

I recommend to my employees that they set up a "walking around money" account with it's own debit/ATM card, and just transfer $100-$200 to that account automatically, for just that reason.

[wolfcreek]

I say We all use cash as much as possible. I don't trust ATMs or on-line banking. Only use credit cards for purchases you initiate.

[Fester Chugabrew]

Thanks for that link. I was hoping someone would show what these theft devices look like.