An irreverent Wall Street Blog
by Bill Singer
 
Join BrokeAndBroker blog on Facebook  Follow the BrokeAndBroker blog on Twitter  Connect with BrokeAndBroker on LinkedIn  Join Bill Singer on Google+  Subscribe to RSS Feed

Feds Arrest ATM Skimming Ring Installer Who Targeted HSBC Branches
Written: January 6, 2012

You know the routine. You go to Citibank, Chase, HSBC, Wells Fargo, Bank of America and make your way to the automated teller machine (“ATM”), where you swipe your bank card in the slot and enter your Personal Identification Number (“PIN”).  It’s how millions of American daily get in touch with their cash. It’s quick. It’s efficient. Ahhh, but is it safe?

Did you know that since May 2011, the U.S. Secret Service and U.S. Attorney’s Office for the Southern District of New York have been investigating an ATM skimming fraud ring that targeted HSBC branches in the New York City Metropolitan area?

According to a federal criminal Complaint filed on January 5, 2012, in Manhattan federal court, a fraud ring stole in excess of $1.5 million from HSBC customer bank account s by installing high-tech “skimming” devices on more than 40 ATMs in Manhattan, Long Island, and Westchester.

Skimming : The installation of an electronic device, usually undetectable by ATM users, that surreptitiously records the user’s bank account information and corresponding PIN.

The ring used skimming technology that included:

(i) devices surreptitiously placed over the ATM card readers, which recorded the encoded information from the electronic strip on the back of the bank cards as they were swiped; and

(ii) small pin-hole cameras installed on the ATMs that made a video recording of the customers’ PINs as the numbers were entered into the ATM machines.

When the coast was clear, members of the ring retrieved the skimming devices and downloaded the stolen card information.  The data on the skimmers was then matched to the corresponding account numbers as captured by the pin-hole cameras.  In one fell swipe, the unsuspecting customer exposed his card’s account number and uploaded the confidential account information from the card’s strip.

The ring then encoded the stolen bank account information onto plastic cards.  Those fabricated cards were then matched with the stolen PINS and the victimized accounts were hit with unauthorized withdrawals.

On January 5, 2012, Laurentiu Iulian Bulat was arrested and  detained after being observed on HSBC bank video surveillance installing skimming devices on two ATMs located at a Manhattan branch.  After branch personnel notified the Secret Service, agents visited the sites and confirmed that skimming devices had been placed on the two ATMs – including card readers and pin-hole cameras.  Thereafter, the agents placed the ATMs under surveillance and observed Bulat returning to the ATMs, apparently to manipulate the skimming devices.   When Bulat was arrested, he was in possession of a flathead screwdriver, which is purportedly used to place and remove the skimming devices.

Bulat, a citizen of Romania , is illegally in the United States on an overstayed visa. He was charged with one count of conspiracy to commit bank fraud and one count of bank fraud. If convicted, he faces a maximum sentence of 60 years in prison.

NOTE: The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.


Topics: Bill Singer  BrokeAndBroker  ATM  HSBC  Skimmer  
 
[^top^]

Previous Entries
October 31, 2014
On June 3, 2013, the Securities and Exchange Commission ("SEC") announced the second-largest trading suspension in its history as part of its "Operati... Read On
October 31, 2014
For one reason or another, stockbrokers may not want to maintain their personal accounts at their employer's brokerage firm. Some of the reasons often... Read On
October 30, 2014
As with virtually every job, the practice of law often becomes mind-numbingly boring. Every so often, however, the profession presents you with a fasc... Read On
October 29, 2014
When it comes to in-house compliance and industry regulatory matters, a loan is a loan and a gift is a gift -- and the two have very different meaning... Read On
October 28, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsEmployment Page BrokeAndBroker.com Jobs#wallstreetjobs @brokeandbrokerNOTICE TO EMPLOYERS... Read On
October 27, 2014
They got a name for it: padding the old expense account. The way I see it, whenever some misconduct has an acronym or generally accepted term, it mean... Read On
October 25, 2014
Merrill Lynch, Edward Jones, Large Hotel Man, And Double Charges For A Few Glasses Of WineOctober 24, 2014Voices were raised, a waitress was upset, an... Read On
BrokeAndBroker.com Job Search
Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Chepucavage Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Brokeandbroker.com Morgan Keegan Arbitration Counterclaim BrokeAndBroker.com Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC RRBDLAW.com Ponzi Affinity Fraud Wachovia Raymond James BrokeandBroker.com Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX BrokerAndBroker.com FBI Banc of America Pro Se Supreme Court Morgan Stanley Smith Barney E*Trade Margin email Galleon Penson U5 Defamation Protocol Wells Fargo Punitive Damages Citigroup Merrill Lynch ARS Employee Forgivable Loan Street Legal Morgan Stanley AWC Fidelity Bankruptcy Broke And Broker HFT David Sobel Day Trading Ameriprise Commissions Spouse Schwab Commission CRD Kenneth Starr IRS CNBC Complaint ATM Skimming Hacking Phishing Malware Naskovets Poteroba Koval Lincoln Financial Selling Away Outside Business Activities Rakoff 2nd Circuit Second Circuit IRA 401k Forgery Tax RRBDlaw.com Email Netschi Moore Whistleblower Street Sweeper Tran Bharara Facebook Online Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers SIPC IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Department of Justice Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer Thain Walter Bid Rigging Real Estate Discrimination Wall Street Statutory Disqualification Form U4 Form U5 Indictment Boyland DOJ Corruption bill singer FTC Do Not Call FINRA Arbitration Costa Rica Settlement LIBOR Varney Plea Rule 8210 Eligibility RRBDlaw Appeal Fowler LPL Johnson US Airways Reg D MSSB Vault Loan SunTrust Discovery Employment Rosenthal Recruiting Lawyer Trading Platform JP Morgan Employment Tuesday Wrongful Termination Bank Guarantee WaMu Solicitation REIT Martin Credit Cards Rule 3050 Away Account Credit Repair PN Advisor Placement Group Forex Mortgage Private Placement Moon Merrill Anderson Exam Lee Borrowing Tax Lien Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity Expense Reimbursement FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker RIA Prison Disclosure NASAA Aguilar FCPA Subway Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank Hospital God HSBC Private Placements Eric Stein Wire Fraud CCO Joshua Brown Backstage Wall Street Obstruction of Justice Reuters Retaliation Variable Annuity Arbitraiton Outside Account Options Telephone Wine Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA MetLife Continuing Education OIP Tax Liens Willful CE Unregistered Impersonation Annuities BBVA Business Expenses ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Impersonator Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks RMBS AML PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement Money Market employment jobs Great Recession Chase Investment Services Arrest Barclays Liens Failure To Supervise Apple Time And Price T&P Willfully Husband Letter of Authorization LOA Sexism Debit Card Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Charge Sexist NML Argentina Embezzlement Silver Investor Alert Judgment Bank Fraud Deceased TSSB Mary Jo White Trustee Motion To Dismiss Frumento Conspiracy 6th Circuit Proctor Rule 3040 Class Action Beneficiary NYAG Schneiderman Gallagher White Self Regulation Short Sale Compromise Website TRO Supervision Vacatur SDNY BrokeAndBroker Bill Singer Piwowar Stifel Rule 1122 Article V signature Inside Information VA Regulation SP Customer Rule 3270 Rule 3240 OWB 2Cir Stockbrokers
 
Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+