36 indicted in global cybercrime ring that stole $530m
Staff Writer |
Thirty-six people were indicted in connection with an international identity theft ring known as a "one-stop shop for cybercriminals" that sold stolen credit card information on the dark web, leading to losses of more than $530 million.
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Following the return of a nine-count superseding indictment by a Las Vegas, Nevada, grand jury alleging racketeering conspiracy and other crimes, federal, state, local, and international law enforcement authorities arrested 13 defendants from the United States and six countries: Australia, the United Kingdom, France, Italy, Kosovo and Serbia.
“Today’s indictment and arrests mark one of the largest cyberfraud enterprise prosecutions ever undertaken by the Department of Justice,†said Acting Assistant Attorney General Cronan.
“As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale. Its members allegedly caused more than $530 million in actual losses to consumers, businesses, and financial institutions alike—and it is alleged that the losses they intended to cause amounted to more than $2.2 billion.
“The Department of Justice refuses to allow these cybercriminals to use the perceived anonymity of the Internet as a shield for their crimes. We are committed to working closely with our international counterparts to identify, investigate, and bring to justice the perpetrators of these crimes, wherever in the world they operate.â€
According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,†aka “Rector,†aka “Helkern,†34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for carding—purchasing retail items with counterfeit or stolen credit card information—on the Internet.
Under the slogan, “In Fraud We Trust,†the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods.
It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.
According to the indictment, Infraud members held defined roles within the organization’s hierarchy.
“Administrators†managed day-to-day operation of and strategic planning for the organization, approved and monitored membership, and meted out punishments and rewards to members.
“Super Moderators†oversaw and administered specific subject-matter areas within their expertise.
“Moderators†moderated one or two specific sub-forums within their areas of subject-matter expertise. “Vendors†sold illicit products and services to Infraud members.
Finally, “VIP Members†and “Members†used the Infraud forum to gather information and to facilitate their criminal activities. As of March 2017, there were 10,901 registered members of the Infraud Organization.
During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $530 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked. ■