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Gangsters from Russia rip off Canadians with debit card scam that sucks up $1.2 million from innocent consumers

The Vancouver Sun (Vancouver, BC)
Friday, December 6, 2002
Section: Front
Byline: Amy O’Brian
Source: with files from Brian Morton and Peter O’Neil

Russian mob linked to ATM fraud

A rash of debit card fraud that started in Vancouver last weekend is now being connected to a Russian organized crime group, Kamloops RCMP said Friday. 

 Dimitri Brezinev -- a Russian immigrant and suspect in the case -- has been arrested in Kamloops and faces more than 100 charges, but police are now looking for five other people thought to be involved in a scam that has sucked more than $1.2 million from bank accounts across Canada. 

 "We're believing it to be part of a Russian crime group. We couldn't say that two days ago, but we can say it now," said Kamloops RCMP spokesman Sergeant Randy Brown.

 Police also had new information Friday about the ATM machines that were used to collect account data from users. Originally, police thought there were only three such machines. Now, they say there were as many as 12 stand-alone, independently owned machines that were used to collect private account information from users. 

 Brown said he does not know where the automated teller machines [ATMs] were located, but said all of them were in Vancouver. 

 All of the machines were likely removed last week by the suspects, taken somewhere and disassembled for the account information, Brown said.

 "These machines are supposed to be secure and encrypted. These people look like they've amended the machine between the card and the encryption area. That's where it looks like they've gathered their data," Brown said.

"What was supposed to be a secure machine now looks like it's been compromised."

After the data is illegally collected from the machines, phony bank cards can be made and used at any ATM in the world to withdraw cash.

 Brown doesn't know how far the cards have traveled, but said they could be circulating anywhere.

 "All we know is these cards have been produced and are out there," said Brown. 

"Who knows where they've gone." 

Now that police suspect 12 machines were used to collect the data instead of three, the number of people affected by the scam and the amount of money stolen is likely much higher than the original $1.2-million estimate. 

 Brown also said there's a possibility there might be more machines still operating and skimming information from customers. 

 The banks do not want to release the locations of the suspect ATMs because it would cause an overwhelming flood of calls from concerned customers, Brown said. 

 "Instead of everyone saying 'Oh my God' and then flooding them with phone calls they won't be able to handle," the banks will go through transaction records and customer lists and contact those people believed to have used the illegal machines, Brown said. 

 "To do it the other way would kill them," he said.  

Police believe the account information was gathered over the past several months, meaning hundreds, if not thousands of people have been affected by the scam. 

 Independently owned and operated ATMs can be bought from several different companies in Canada for $8,500 to $12,000. 

Police aren't sure what sort of standards have to be met before someone can set up an ATM in a convenience store or bar, but Brown said this latest scam might cause a review of the standards. 

"I don't think it's all that difficult to buy them," he said. "People think the system's secure enough, but the proof's in the pudding." 

Vancouver police Constable Sarah Bloor said Friday she didn't have any new information on the matter and said there are few if any police checks of the machines. 

"I don't even know that we keep track of the machines out there," she said.

"That's not our responsibility because it's a private business." 

Police are asking people to examine their bank account records carefully and contact their bank if they suspect they've been the victim of debit card fraud. 

The banks then work closely with police to track any suspects. 

 Police are asking for help identifying the five people pictured in the surveillance camera footage and are also looking for a 2003 grey Dodge Grand Caravan.

 
© Copyright 2002 Vancouver Sun

Edition: Final
Story Type: Crime
Length: 670 words

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