WASHINGTON-Efforts to crack down on identity theft were successful when federal prosecutors announced the arrest of a man thought to be the ring-leader in a scheme that illegally obtained the personal credit information of more than 30,000 Americans from all 50 states.
The information was then used to steal at least $2.7 million, according to federal authorities.
“The defendants took advantage of an insider’s access to sensitive information in much the same way that a gang of thieves might get the combination to the bank vault from an insider. But the potential windfall was probably far greater than the contents of a bank vault, and using 21st century technology, they didn’t even need a getaway car. Using the same technology, we determined what was done and who did it, proving that technology is a double-edged sword,” Kevin Donovan, assistant director in charge of the FBI’s New York field office told CNET News. com.
Philip Cummings, 33, of Cartersville, Ga., was released on $500,000 bond. Cummings could face up to 30 years in prison for wire fraud and millions in fines.
Cummings was a help-desk worker at Teledata Communications Inc. TDI supplies credit reports to banks and other lending institutions. It is based in Bay Shore, N.Y.
Allegedly the scheme worked like this: Cummings and an accomplice Linus Baptiste would use the passwords of the lending institutions to steal the personally identifiable information of the victims. This information was then sold for $60, which was split between Cummings and Baptiste.
Baptiste was charged in October with wire fraud. A third man, Hakeem Mohammed, pled guilty in October to mail fraud and conspiracy.
The Department of Justice and the FBI urged anyone who suspects they may have been a victim of identity theft to contact the Federal Trade Commission at 1-877-ID-THEFT (1-877-428-4338).
