Five arrested in US$45m 'cyber heist'

Bewildered cardholders were left scratching their heads after criminals removed card limits and stole their cash. Image: Stockimages Free Digital Photos

The US Justice Department said those arrested were believed to be members of the New York cell of an international cybercrime organisation, which used sophisticated intrusion methods to hack into the systems of financial institutions, steal prepaid debit card data, and make fraudulent ATM withdrawals on a global scale.

Officials said the cyber-ring managed to steal US$45m in late 2012 and early 2013 by manipulating the limits of prepaid debit cards from Abu Dhabi-based National Bank of Ras Al-Khaimah and Bank Muscat of Oman.

The five arrested face charges unsealed in an indictment. Eight others were charged in May.

This type of heist is known in criminal circle as an "unlimited operation." Two were allegedly carried out: the first one on 22 December last year and the second on 19 and 20 February this year.

In the first heist, more than 4,500 ATM transactions were conducted in 20 countries around the world, resulting in US$5m in losses.

In the second incident in February 2013, cybercells in 24 countries withdrew about US$40m from ATMs.

Limits removed

Breaking into the system, the hackers eliminated withdrawal limits imposed by banks.

Next, the cybergang distributed the debit card numbers to its street associates called "cashers," who loaded more magnetic stripe cards, like gift cards, with the stolen data.

Those arrested on Monday (18 November) were identified as Anthony Diaz, Saul Franjul, Saul Genao, Jaindhi Polanco and Jose Angeley Valerio.

"As alleged, just a few months ago, after exploiting cyber-weaknesses in the financial system to steal millions from ATMs, these defendants were packing bags to the brim with stolen cash, destined for the cybercriminal organisers of these attacks," said US Attorney Loretta Lynch.

"Today, we have sent them packing - but this time, to jail. We will not relent until all those responsible for these financially devastating cybercrimes are brought to justice," Lynch said.

Authorities said newly seized photographic evidence revealed that the defendants sent US$800,000 of cash proceeds in luggage by bus for delivery to a cyberheist organiser.

Source: AFP via I-Net Bridge

A sixth defendant, Franklyn Ferreira, is a fugitive from justice. Of those charged earlier this year, four have pleaded guilty to charges in the case.