October Marks End to Historic Cyber Crime Investigation

According to the Anti Phishing Working Group’s 2009 report, cyber crime has increased a staggering 600% in 2009. But according to a recent article from Bank Info Security, federal and international law enforcement agencies are successfully fighting back. October marks a major success in the fight against online criminals.

The largest cyber crime investigation in United States history concluded this month with the arrest of over 100 participants both at home and abroad. The two-year investigation, called “Operation Phish Pry,” was a collaborative effort between American law enforcement, including the Federal Bureau of Investigation (FBI), and Egyptian law enforcement. The collaboration was the first of its kind. The phishing operation targeted consumers of American banks and stands as a testament to the complexity and reach of organized cyber fraud.

The indictment includes 51 individual accounts of conspiracy to commit wire and bank fraud, as well as additional charges of computer and bank fraud and identity theft. An addition 47 participants were apprehended in Egypt. The primary means of identity fraud committed by these scammers was the use of online usernames and passwords obtained through deceptive means to conduct fraudulent transactions with banks such as Wells Fargo and Bank of America.

Establishing a Red Flags Rule compliant security program, including id authentication and id verification services from a reliable data provider like Electronic Verification Systems (EVS), will be an important step in bank and business fraud protection when the rule goes into effect on November 1, 2009.

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