European Operation Nabs Credit Card Fraudsters

Published: 29 March 2013

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A multinational operation arrested 44 members of an organized crime syndicate responsible forcredit card fraud which affected approximately 36,000 individuals across 16 European countries,according to a Europol press release.

The crime group stole credit card information using manipulated point of sale (POS) terminals-- the machines where credit cards are swiped in. Card reading software was implanted intothe POS terminals, and members of the crime group then created counterfeit credit cards withthe stolen information. The thieves then targeted major European shopping malls, according toEuropol.

Police conducted 82 house searches in Romania and the UK, and closed down two illegalworkshops where POS manipulation devices were produced. Counterfeit cards, stolenelectronic data, and cash were also seized during the course of the operation.

OperationPandora-Storm as the action was dubbed involved 20 law enforcement agenciesfrom Europe, North America, and Australia. The investigation was headed by the RomanianCybercrime Unit and a specialized Organized Crime Division of the Prosecutor’s Office.Europol’s European Cybercrime Center contributed analysis and coordination assistance to theinvestigation. The final arrests involved over 400 police officers, a Romanian command center inBucharest, and support from Europol headquarters in The Hague.

In its Serious Organized Crime Assessment (SOCTA) published in March 2013, the EUhighlighted the threat posed by organized crime diversification. Among the threats mentionedin the report was a rise in organized electronic crime, including credit card fraud. The reportestimated that organized crime groups earn $1.9 billion from credit card fraud alone. the low-riskhigh-reward nature of cybercrime contributes to its popularity, the report concluded. The reportalso warned that as mobile payments and the use of near field communication expand, theyprovide “new opportunities for data theft and fraud.”

Troels Oerting, Head of European Cybercrime Center echoed the report’s statements. He praised the success of Operation Pandora-Storm, saying it was an “example of excellent policework and flawless cooperation,” but added that the in the future “cybercrime will become a greatchallenge for the [law enforcement] community.”