| ATM and debit card fraud is a rapidly escalating crime throughout the GTA and now it’s here on campus. Students are encouraged to be mindful of their bank records after a fraudulent pin pad device was found on campus which was used to steal personal information to access bank accounts. A compromised pin pad was found in one of the school cafeterias March 28. Campus Safety and Durham Regional Police are investigating the incident and are asking all those affected to file a report with campus security and the police. About 30 people have come forward victimized by this scam, said Gary Pitcher, director of Campus Safety. Many students have had their bank accounts seized as a precaution leaving them unable to access their money until they contact their bank. In a separate investigation by the Durham Police Fraud Unit, a similar operation on a much larger scale was discovered. Police executed several search warrants in Vaughan, Newmarket and Barrie March 18. Police arrested six suspected members in the hierarchy of an ATM organized fraud ring and laid 80 charges in the case. “Make no mistake these people are organized crime, they are very organized, and they are good a what they do,” said Don Perron, an inspector for the OPP organized crime branch. “These folks are very, very intelligent savvy IT people.” The investigation, called Project Kaiser, focused on the suspects who were manufacturing and distributing ATM overlay or skimming technologies. Thousands of people in the GTA had their bank accounts compromised, but ultimately the banks suffer the financial loss after reimbursing their customers. More than 100 pinhole cameras and overlay devices were found that are used to record personal data while a customer uses an ATM. These technologies can cause an estimated $1 million in financial losses, each machine representing about a $100,000 loss. “The information is captured through the ATM . . . your identity is basically stolen,” said Brian Osborne, an inspector for the Durham Police major crime branch. “It is then downloaded into a computer, captured and put on a card.” Three vehicles were seized valued at $160,000 along with disguises used during the crimes. About $100,000 in offence-related items were recovered including bulk quantities of power tools, electronics, gift cards, liquor, Xbox and PS3 gaming systems. These items were purchased online using the duplicated debit cards and then re-sold on classified advertisement websites. “The people who are involved in this type of activity are siphoning money from the legitimate economy and turning it around and investing to conduct more criminal activity,” Perron said. There are no international connections linked to this investigation, however these crimes are occurring more frequently across borders. “It’s a worldwide problem, it’s across the GTA and it’s across the world,” said Osborne. “We know that from policing and intelligence (that) it’s everywhere.” The ongoing investigation of the six accused focused on ATM fraud and is unrelated to the pin pad tampering that happened on the campus, said Dave Selby, a spokesperson for Durham Police. The ATM machines on campus were not corrupted or changed in any way only. One point-of-sale pin pad terminal was in question in the investigation, Selby said. However, with this type of crime increasing in the region people are being advised to take extra caution whenever they use any type of card payment. “We encourage people to . . . use the same bank and be (aware) of what the bank equipment and ATM looks like, so that if you go to the actual machine and it looks different call the bank and police with your suspicions,” said Osborne. |
Natalie Finnemore
PRESS CONFERENCE: Don Perron of the OPP organized crime branch (left) and Durham Police inspector Brian Osborne (right) exhibited evidence found in a recent organized fraud bust in Courtice.
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