Consumers Beware--41 Million Credit Card Records Stolen!
Eleven individuals were indicted on August 5th on charges relating to the operation of a sophisticated identity theft ring targeting U.S. retailers. It is believed that the thieves stole 41 million credit and debit card records.
According to U.S. Attorney General Michael Mukasey: "So far as we know, this is the single largest and most complex identity theft case ever charged in this country"
Federal prosecutors brought charges of conspiracy, computer intrusion, fraud and identity theft against the eleven. According to the Department of Justice, the ring began operating in 2003, hacking into wireless networks and using stolen data to steal tens of thousands from ATMs.
The criminal ring had ties to Eastern Europe and East Asia. Indictments were brought against individuals from Estonia, the Ukraine, China and Belarus, as well as the U.S.
According to officials, is not clear how much of the stolen data has been used; consumers could see new instances of fraud relating to the theft of these 41 million records for some time to come.
The theft ring targeted nine U.S. retailers including:
• TJX
• BJ's Wholesale Club
• OfficeMax
• Barnes & Noble
• Sports Authority
• Dave & Buster's
• Forever 21
• DSW
• Boston Market
Retailer TJX, parent company of Marshall's and T.J. Maxx, lost 45 million records over the course of several years.
In the case of the restaurant chain Dave & Busters a "packet sniffer" at one location captured data for 5,000 credit and debit cards causing losses of $600,000.
The lesson here: no matter how careful you may be with your personal information, you are still at risk of becoming an identity theft victim if your records are lost in a data breach.
If you suspect that you may be affected, consider identity theft protection. As Mukasey says: "Millions of Americans have their identities compromised each year. The annual costs to American citizens and businesses are in the billions."
