Individuals Plead Guilty to Embezzling Over $3.5M in Purchases with Stolen Accounts
ARLINGTON, Va. – Nov. 5, 2019 – Airlines Reporting Corp. (ARC) is pleased to announce that it assisted the U.S. Secret Service in breaking up and bringing to justice a sophisticated group of credit card fraudsters involved in a multimillion-dollar conspiracy. As reported recently by the U.S. Department of Justice, six persons pleaded guilty in federal court in Newark, New Jersey, to obtaining over 4,000 stolen credit card accounts from the “dark web” and making fraudulent retail purchases totaling over $3.5 million.
Using the company’s advanced security technology, ARC’s fraud investigation team detected a pattern of suspicious airline ticket purchases using compromised credit cards. ARC alerted the National Cyber-Forensics and Training Alliance (NCFTA), which, in turn, notified the Secret Service and triggered the investigation. ARC supported the Secret Service during the investigation by continuing to monitor air ticket purchase patterns linked to the suspected fraudsters.
According to the DOJ, from 2015 through 2018, individuals based in the New Jersey/New York area made trips around the U.S. to purchase gift cards, flights, hotels, rental cars, and luxury goods. The group’s leader would then sell the gift cards and luxury goods for cash and distribute each group member a percentage of the take.
“ARC is very aggressive in pursuing and disrupting fraudsters,” said Doug Nass, ARC’s director of fraud investigation. “These criminals are marauders who leave a wave of financial distruction in their path that threaten the well-being of travel agencies. In addition to detecting fraud with our technology, agenies provide us tips that allow us to help the entire community remain a safe place to conduct business.”
Travel agencies are encouraged to contact ARC about possible fraud incidents by emailing toll free. Please visit ARC’s website to view the latest fraud mitigation webinars for travel agencies.
An industry leader in air travel distribution and intelligence, ARC provides channel-agnostic tools and insights to help the global travel community connect, grow and thrive. ARC enables the diverse retailing strategies of its customers by providing flexible settlement solutions, innovative technology and access to the world’s most comprehensive air transaction dataset. In 2018, ARC settled $94.8 billion in transactions between airlines and travel agencies, representing more than 295 million passenger trips. For more information, please visit arccorp.com.