Federal charges brought again global identity theft ring responsible for steal 94 million records and $40 million
Wednesday, August 6th, 2008Federal prosecutors have brought charges against 11 identity theft conspirators. The suspects arrested for being part of an international identity theft ring hail from the United States, China, Estonia, Belarus and Ukraine. The massive identity theft that led to their arrest began in 2003 and involved TJ Maxx, BJ’s Wholesale Club, Office Max, Barnes & Noble, Marshalls and Sports Authority.
The identity theft ring was able to steal 94 million records and then used them to steal more than $40 million. The debit and credit card information was sold and traded on the internet. The stolen data was imprinted on blank credit and debit cards, allowing the withdrawal of thousands of dollars at ATMs all over the world.
Feds are calling this the largest, most sophisticated identity theft ever committed.
A Miami man, Albert Gonzalez, has been identified as the ringleader, and could face life in prison if he’s found guilt on charges of computer and wire fraud, conspiracy and aggravated identity theft.
Gonzales was first arrested by the Secret Service in 2003 on the same kind of charges. He avoided prosecution by agreeing to work as an informant helping officials crack an internet site where an international ring of identity thieves bought and sold stolen identities and financial information. Gonzalez used the opportunity to work as a sort of double agent, informing other criminals before they were arrested by the Secret Service.
TJX, the parent company of many of the victimized stores has so far paid out $130 million in legal settlements and other related expenses, and will pay out another $23 million next year.
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