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'Unusually Sophisticated' Credit Card Fraud Linked to Gangs

California investigators have accused some 30 people with stealing over $1 million
By Newser Editors and Wire Services
Posted Sep 10, 2018 6:30 PM CDT
California Attorney General, Xavier Becerra, at podium, and other officials announce indictments of 32 members of purported street gangs.   (AP Photo/Don Thompson)

(Newser) – More than 30 purported street gang members have been charged with stealing more than $1 million in what authorities said Monday was an unusually sophisticated credit card fraud scheme. Members and associates of the BullyBoys and the CoCo Boys street gangs based in the suburbs east of San Francisco defrauded hundreds of victims by breaking into dozens of medical and dental offices to steal credit card terminals and patient records, said state Attorney General Xavier Becerra and police chiefs from three cities. The 32 alleged gang members used the stolen terminals to process credit card returns, downloading them to debit cards, according to the 240-count indictment. "It is easier today and it is more rewarding today to engage in identity theft and financial fraud than it is to go out there on the street and commit physical, violent crime," Becerra said.

Per the AP, The investigation began in early 2016 when investigators noticed similarities between burglaries scattered across Northern California. The indictment handed down last month by a special Sacramento County-based statewide grand jury includes counts of conspiracy to commit grand theft; hacking, computer access and fraud; grand theft; burglary; and identity theft. Nearly 130 law enforcement officers fanned out last week and over the weekend to make 25 arrests. Seven remain fugitives. Investigators recovered about 40 stolen credit card terminals, dozens of fraudulent receipts, laptop computers and files including Social Security numbers or bank information. Street gangs have become more mobile, picking targets over large regions and taking advantage of opportunities like unsecured or unencrypted files or financial equipment, said Sacramento Police Chief Daniel Hahn. (Read more gangs stories.)

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