Stealing Millions 25 Cents At A Time

US Federal Trade Commission Goes After Credit Card Scammer Gang

1 min read
Stealing Millions 25 Cents At A Time

There was a fascinating story in yesterday's ComputerWorld about the US Federal Trade Commission (FTC) filing a civil lawsuit against a scammer gang that had "set up fake U.S.companies that then ran more than a million phony credit card transactions through legitimate credit card processing companies."

According to the story, the scammers charged anywhere from $0.25 to $9.00 to legitimate credit card numbers that they likely purchased from black market websites trafficking in stolen cards.

The scammers set up some 100 bogus companies that fraudulently charged the credit cards over 1.35 million times for a total of $9.5 million over the course of four years. Only 78,724 of the charges were disputed, the FTC said. 

The ComputerWorld story says that scammers know that most credit card fraud detection systems don't bother with fraudulent card charges under $10, and that most people don't seem to question small charges with legitimate sounding company names like Adele Services or Bartelca LLC attached to them.

Unfortunately, criminal charges against the scammers are unlikely, since the FTC believes they operate outside of the US. So the best the FTC can do is play "whack a mole" and try to shut scamming operations down when they do pop up.

The Conversation (0)

Why Functional Programming Should Be the Future of Software Development

It’s hard to learn, but your code will produce fewer nasty surprises

11 min read
Vertical
A plate of spaghetti made from code
Shira Inbar
DarkBlue1

You’d expectthe longest and most costly phase in the lifecycle of a software product to be the initial development of the system, when all those great features are first imagined and then created. In fact, the hardest part comes later, during the maintenance phase. That’s when programmers pay the price for the shortcuts they took during development.

So why did they take shortcuts? Maybe they didn’t realize that they were cutting any corners. Only when their code was deployed and exercised by a lot of users did its hidden flaws come to light. And maybe the developers were rushed. Time-to-market pressures would almost guarantee that their software will contain more bugs than it would otherwise.

Keep Reading ↓Show less
{"imageShortcodeIds":["31996907"]}