US announces arrests in $530 million cyber identity fraud scheme

US announces arrests in $530 million cyber identity fraud scheme

US announces arrests in $530 million cyber identity fraud scheme

"Operating under the slogan 'In Fraud We Trust, ' members of the Infraud Organization used the online forum to purchase and sell stolen credit card numbers, financial information, social security numbers, passwords and other personally identifying information", said David Rybicki, deputy assistant attorney general, in a speech discussing the arrests in Washington, DC on Wednesday.

The indictment alleges that the "Infraud Organization" was created in October 2010 by Svyatoslav Bondarenko of Ukraine.

Law enforcement has only arrested 13 of the members so far, five of which are from the U.S. and only one of which (Sergei Medvedev) is considered top brass.

Like many major cybercriminal organizations, it was against the rules to buy or sell stolen access devices and other contraband belonging to victims within Russian Federation.

The Americans involved with Infraud have already appeared in court, and they could face more than 30 years in prison if they're found guilty.

Administrators managed day-to-day operation of and strategic planning for the organisation, approved and monitored membership, and meted out punishments and rewards to members. Vendors sold illicit goods or services to either VIP or regular members.

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In addition to facilitating the sale of stolen information, the department also alleged the network provided an escrow (temporary third-party) account so people could launder their proceeds using digital currencies including Bitcoin, Liberty Reserve, Perfect Money and WebMoney.

Super Moderators oversaw and administered specific subject-matter areas within their expertise.

"As alleged in the indictment, Infraud operated like a business to facilitate cyberfraud on a global scale".

Members used the forum to co-ordinate and commit online crimes including identity theft, bank fraud, wire fraud and computer crimes, he said. Significantly, those arrested include alleged kingpin Medvedev.

The Justice Department on Wednesday announced the racketeering conspiracy along with the arrest of 13 people, eight of whom the government will seek to extradite from Australia, the U.K., France, Italy, Kosovo and Serbia. Below is an organizational chart of those charged.

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