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Thread: ATM fraud network that robbed $1M busted

  1. #1
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    ATM fraud network that robbed $1M busted

    MONTREAL — Officers with the economic crimes division of the Sûrété du Québec have broken up a fraud network operating out of Quebec and Ontario that stole more than $1 million from people using automatic teller machines.

    Five search warrants were carried out in St-Sauveur, Piedmont and Toronto in the raids dubbed Operation Mongoose.

    Police believe this fraud dates back to 2008 but the major investigation that led to the arrests began in Dec. 2013, said Sgt. Benoît Richard with the SQ.

    The fraud involved the installation of a card reader at an ATM and also a small camera mounted over the machine to film clients keying in their PIN. The police estimate that 200 machines were altered during the duration of the fraud.

    The card reader kept the information from the magnetic strip on the back of debit and client cards and with the PIN numbers, the group could clone cards and use them for unauthorized withdrawals.

    Last December with complaints filed by various banks, the SQ moved in.

    Five search warrants were carried out in homes and shops on Thursday morning resulting in four arrests and the seizure of cloning material and cash.

    Thursday afternoon Martin Kouzov Antonov, 52, Vassilina Dimitrova, 48, Borislav Petrov, 53, and Iren Atanasov Vasilev, 42 will appear in court in St-Jérôme to face charges of data traffic, fraud, possession of cloning equipment and possession of data.

    Police are looking for four men in the Toronto area in relations to this network.

    Arrest warrants were issued for Stefan Stefanov, 45, Vencislav Gigov, 53, Valentin Borisov, 51, and Sirákov Konstantin, 39.

    The Quebec victims of this fraud were from Montreal, Laval, the Laurentians, Montérégie and Gatineau. The Ontario victims were mainly in Toronto.

    Richard said it is always prudent to shield the keypad with your hand or other means when punching in your PIN number.

    ATM fraud network busted

    Kick those damn commies out of the country and send them back to Russia where they belong!

  2. #2
    It's pretty common fraud. That's why you should never use private ATM machines.
    99% of times they are rigged

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    I used one once and enter the wrong pin ! Yeee free money ! Same thing with a taxi ! It cost less to banks to pay for fraud than make a real secure network !
    GOHABSGO

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    Funny but there was just a discussion in the exchange rate thread about how ATMs are the best thing since sliced bread for obtaining Canadian cash. I tried to tell guys they were not safe, this based on my own experience, and I was pooh poohed. You place yourself at the mercy of how much the bank has invested in security and I got news for ya, they don't give a fucking rat's ass about your security.

  5. #5
    Quote Originally Posted by EagerBeaver View Post
    Funny but there was just a discussion in the exchange rate thread about how ATMs are the best thing since sliced bread for obtaining Canadian cash. I tried to tell guys they were not safe, this based on my own experience, and I was pooh poohed. You place yourself at the mercy of how much the bank has invested in security and I got news for ya, they don't give a fucking rat's ass about your security.
    They actually DO care about security and hence why they warn people to hide their pin and inspect machine. This is also why machines have a small cover where you enter your pin so that camera can not be installed easily.

    Also take into account that in canada all retailers must use a chip machine now. That has cut down in frauds by about 90%. Unfortunately the rest of the world is not yet required to use chip technology yet and this is why the numbers stolen here are not used here and sent abroad.

    Once everyone is required to use chip technology they will have to resort to alternative methods.

    And ps... Everyone gets their money back from the bank if their card is cloned.

    Only time they don't is if your card was stolen and your actual card was used to take out the cash because you had the code in your wallet as well or it was somethjng stupid easy like 1111 or something. Then they may not pay.

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    Quote Originally Posted by EagerBeaver View Post
    Funny but there was just a discussion in the exchange rate thread about how ATMs are the best thing since sliced bread for obtaining Canadian cash. I tried to tell guys they were not safe, this based on my own experience, and I was pooh poohed. You place yourself at the mercy of how much the bank has invested in security and I got news for ya, they don't give a fucking rat's ass about your security.
    You do realize that this happens in the US too, Beav?
    Jules Winnfield (Samuel L. Jackson in Pulp Fiction) English, motherfu*ker, do you speak it?

    Typical Yankee fan in the Merb Sports Section!! Bwwaahh.

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    Quote Originally Posted by Special K View Post
    You do realize that this happens in the US too, Beav?
    Exactly and I discussed it in the other thread. I only use my bank's in house ATMs. I plan ahead and withdraw as much money as I will possibly need so I don't run into cash issues on the road.

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    and apparently your in house bank's ATM's are immune to any type of fraudulent activity? Congratulations on banking with the world's most secure bank on earth.
    Jules Winnfield (Samuel L. Jackson in Pulp Fiction) English, motherfu*ker, do you speak it?

    Typical Yankee fan in the Merb Sports Section!! Bwwaahh.

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    I think the ATMs in their bank are somewhat secure because the public cannot access them. You have to be a bank customer, swipe a card and go through a door to get at the ATMs after hours. The ATMs are located in vestibules between a secure outer door and an inner entrance door. It is a nice feature.

    My bank actually gives me free identity theft protection, this as a result of an incident that occurred a few years ago that has nothing to do with their ATMs.

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    I'm officially at a complete loss for words now Beav. You're incredible.
    Jules Winnfield (Samuel L. Jackson in Pulp Fiction) English, motherfu*ker, do you speak it?

    Typical Yankee fan in the Merb Sports Section!! Bwwaahh.

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    Quote Originally Posted by EagerBeaver View Post
    Funny but there was just a discussion in the exchange rate thread about how ATMs are the best thing since sliced bread for obtaining Canadian cash. I tried to tell guys they were not safe, this based on my own experience, and I was pooh poohed. You place yourself at the mercy of how much the bank has invested in security and I got news for ya, they don't give a fucking rat's ass about your security.
    So you NEVER use ATM machines other than the ones at your bank?? NEVER????

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    Quote Originally Posted by Special K View Post
    I'm officially at a complete loss for words now Beav. You're incredible.
    Ditto!!

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    Quote Originally Posted by Doc Holliday View Post
    So you NEVER use ATM machines other than the ones at your bank?? NEVER????
    Like I said previously, I withdraw more money than I need and usually don't find myself in situations where I need to use an ATM when I am away from home. I see nothing wrong with carrying around more cash than is necessary. Yes if I get mugged, it would be a problem, but I have not been mugged. When the Colts owner Irsay got busted for DUI last week they found $29,000 in cash on his person. I don't carry around that much money. There is also very good reason to believe that bank ATMs, while not perfectly secure, are certainly more secure than ATMs the public has acccess to 24/7. It's common sense. Also the only time I had credit card hack issues was with using vending machines, and I don't do it any more. I kind of think all these things are common sense in the age of identity theft we live in.

    My accountant told me tax ID fraud is a severe problem now because of hackers getting SS#s and filing bogus returns electronically claiming refunds. No way to stop it but what is recommended is filing early as possible-because you can't file twice using the same number. Return is rejected. That is what I did. I don't have to send a check to the IRS until April 15.

    None of these steps are foolproof but they are all common sense/prudent ways to minimize the chance of ID theft. Bottom line is cash is king and always will be.

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    Quote Originally Posted by LadyLover View Post

    Also take into account that in canada all retailers must use a chip machine now. That has cut down in frauds by about 90%. Unfortunately the rest of the world is not yet required to use chip technology yet and this is why the numbers stolen here are not used here and sent abroad.
    Chip/Smart cards are very secure indeed. I used to work in the field. Chips on these cards are tiny computers with cryptographic capabilities. As soon as you insert the card in the ATM, a mutual authentication protocol is initiated between the card and the terminal. Basically, the card ensures that it is not talking to a fake ATM and the ATM ensures it is not talking to a fake card. Banking accound data is securely stored on the chip. Once the mutual authentication process is over, the card sends the banking account data to the terminal via a secure channel. This means that, even if somebody manages to tamper the ATM, all that he/she will get is some gibberish that requires years and years of computing power before it is broken (which makes it worthless for the attacker). Chip cards use strong cryptography, we were using 512 to 1024 bit keys when browsers, at that time, used only 56 and 128 bit keys for https connections.

    The vulnerability comes from the magnetic stripe on the card and as LadyLover has mentioned, this stripe is kept for backward compatibility reasons. About 130 countries have adopted chip cards. We have started using this technology just a few years ago in Canada. Some other countries are still 3 decades behind. Magnetic stripes can easily be cloned. A card cloning device can be very easily purchased on the Internet for a few hundred bucks.

    Unfortunately, all the security provided by the chip is nullified by this stupid magnetic stripe and we still need to cover the ATM's keyboard with our hands when we key in our PIN and pray that the keyboard itself is not a fake one.

    Finally, it bugs me that Canadian banks do not offer us cards without a magnetic stripe. At least, customers should be able to choose whether they wanted a card with both a chip and a magnetic stripe or just a chip. Personally, I would have chosen the latter option.

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    Quote Originally Posted by EagerBeaver View Post
    the only time I had credit card hack issues was with using vending machines, and I don't do it any more.
    Are vending machines that accept credit cards a common thing? I've only seen a few such machines in airports selling Apple products. Are these the type of 'vending' machines you are alluding to?

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