Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
ATM fraud ring arrests made stole from Florida CUs
JACKSONVILLE, Fla. (6/19/09)--Police in Jacksonsville, Fla., recently made three arrests in a complex ATM fraud ring involving more than 100 people. The ring defrauded a number of Florida credit unions. Ophel Day, Tony Fudge and Jacob Dunn were arrested for depositing bad checks into ATMs and then making withdrawals or purchases before the checks bounced, according to federal investigators (WJXT Jacksonville June 17). The fraud has cost local credit unions from $300,000 to $500,000, police said. Affected credit unions include Jacksonville-based Vystar CU and Mulberry, Fla.-based Community First CU. More arrests will be made, Paul Elliot of the Secret Service, told the newspaper. The scam begins when account holders sell their ATM cards and personal identification numbers for up to $500 to a “recruiter” in the ring, authorities said. The recruiter then passes the information on to the scam’s ringleader. Individuals giving up their card then report the card as stolen (Jacksonville.com June 17). Recruiters deposit checks that are counterfeit, stolen or from closed accounts into ATMs. The active accounts allow a percentage of the money deposited to be immediately withdrawn, with subsequent withdrawals and purchases from businesses conducted before the check is returned, authorities said. Account holders often report that their cards are stolen or lost after the thefts occur. Many are reimbursed for losses they claim--which results in a double whammy to the financial institutions involved, authorities added. In the end, costs are borne by legitimate customers through fees--or in the case of credit unions through the increased cost of conducting business, police and a credit union official told Jacksonville.com.
Other Resources

RSS





print
News Now LiveWire
Consumer spending is slumping #Market #Economy http://t.co/RI4HS68IuJ
9 hours ago
April is #NationalFinancialLiteracyMonth & @TheNCUA Chair Matz urges #creditunions to help members learn to manage/protect their finances.
11 hours ago
Fed. FI regulators' statmnts on compromised credentials/destructive malware #cybersecurity http://t.co/f4uTBDm1PU http://t.co/zP5Iw6VxZc
12 hours ago
Home prices rising faster than wages: @RealtyTrac #NewsNow #Market http://t.co/wa74mnw3Cu
14 hours ago
.@Nussle dropped by the @ACUMuseum recently. Read about his visit http://t.co/bYe8RRgYLP
15 hours ago