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Industry News

Five Quebecers arrested for $1 million debit and credit card skimming fraud

By Joseph Trigliari

19/01/2010 - Not all payment processing security breaches are related to sophisticated network breaches and encryption hacking, as several Winnipeg businesses discovered in recent months.

At least 11 Winnipeg businesses - and potentially more in other provinces - were victims of a debit card fraud scam, for which one man and four youth were just arrested by Winnipeg police.

The man, Thomas Wayne Hope, and the four 17-year-olds - all from Quebec - had been stealing debit card PIN pads, inserting skimming devices, and then returning the devices. They are said to have made away with more than $1 million in stolen debit and credit card information, which had been sold to criminals or used to access the cardholders' bank accounts, the Winnipeg Free Press reported.

The men have been charged with possessing an instrument to forge credit cards, property obtained by crime, theft under $5,000 and conspiracy to commit fraud.

"Don't let their ages fool you. These individuals know what they're doing. They're very skilled," Winnipeg Police Service Constable Jason Michalyshen told the newspaper.

Payment processing security experts urge businesses with merchant accounts to inspect their POS terminals, PIN pads and other payment processing infrastructure frequently, to detect if there have been any changes made to the hardware of the systems. ADNFCR-2514-ID-19565681-ADNFCR

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