Aussie named in $678M cyber fraud ring investigation

Marcus Newton
February 8, 2018

USA investigators estimate the site's members meant to cause $2.2 billion worth of damage, but actual losses amounted to over $530 million.

The group allegedly conducted large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband, according to a Justice Department announcement.

The department also alleged that the network provided an 'escrow, ' or third party account, to allow people to launder their money using digital currencies including Bitcoin, Liberty Reserve, Perfect Money and WebMoney.

Most of the members of Infraud never met in person and only knew one another through their online usernames, he said.

Under the slogan "In Fraud We Trust", according to the indictment, the crime ring grew to almost 11,000 members and became a premier destination for carding - or the buying of online goods with counterfeit or stolen credit card information.

Bondarenko remains at large, but the number two figure in the organisation, Russian co-founder Sergey Medvedev has been arrested, according to USA officials.

Moderators moderated one or two specific sub-forums within their areas of subject-matter expertise.

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The senior administrators continuously screened the products and services of vendors "to ensure quality products", said the indictment.

Infraud members used an online discussion forum to "discuss, meet, and conduct criminal activities", and to advertise them, the indictment said.

USA investigators called Infraud one of the largest cyberfraud enterprises they'd ever prosecuted.

"This case reflects the alarming and increasing threat posed by cybercrime", Mr Rybicki said.

Cronan, of the the Justice Department's Criminal Division, was joined in announcing the indictment by U.S. Attorney Dayle Elieson of the District of Nevada, and Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI).

Thirteen people were taken into custody across the globe, including in California, New York and Alabama.

A total of 13 arrests have been made so far from the US, Australia, France, Italy, Kosovo, Serbia and the UK, US prosecutors said.

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