eBay/Yahoo fraud story...
From NYTimesOnTheNet
(with their permission)
$3 Million U.S. Computer Theft, Hatched It Seems in Pakistan
By DAVID ROHDE
ARACHI, Pakistan, Jan. 15 ? First, a San Francisco postal inspector tried to unravel it. Then a North Dakota customs agent tried. For three years, no one could solve it.
A mass of names and places hinted to the investigators that someone, somewhere, was stealing millions of dollars of computer equipment from American companies without ever setting foot in the United States.
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There were sham auctions on E-bay and Yahoo! Stolen credit cards from across the world. Shipments to more than 100 branches of the company Mail Boxes Etc. in places like North Dakota, New York and Texas. There were also hundreds of Federal Express deliveries to a company in Singapore.
"The primary suspect was creating a very confusing trail for all of us," an American investigator said. "This is one of the most sophisticated ones I've seen."
Last month, Pakistani and American investigators arrested Khurram Iftikhar, a 25-year-old Pakistani college dropout. The case, investigators say, demonstrates the increasing sophistication of Internet surveillance technology by investigators and the global reach of online fraud.
From the comfort of his home and office in Karachi, investigators say, Mr. Iftikhar stole more than $3 million worth of computer equipment. He did it using keystrokes, mouse clicks, phone calls and faxes, as well as occasional two-hour flights to nearby Dubai. There, he rented an apartment, bought a BMW and occasionally paid Federal Express, one of many American companies he is accused of duping.
At home, he appeared to be a successful but low-key young entrepreneur with a computer sales business. He lived at home with his father, a retired civil servant, and his mother, a homemaker. He drove his father's Honda Civic. His company, Fast Track, rented a downtown office and employed 8 to 10 people. "It's not the first one in Pakistan," a Pakistani investigator said, referring to online schemes. "But it's the biggest."
Mr. Iftikhar's lawyer, Muhammad Ilyas Khan, said his client was innocent and accused investigators of planting evidence in his office. He also pointed out a loophole in Pakistani law that could allow Mr. Iftikhar, who is in jail, to be set free. Pakistan has few laws that deal with cybercrimes.
Pakistani investigators said Mr. Iftikhar could be prosecuted under fraud laws.
The investigators said Mr. Iftikhar used the same technique over and over. First, he offered a piece of computer equipment for auction on E-Bay or Yahoo. Bids poured in, and a winner was declared. Mr. Iftikhar collected the successful bidder's credit card information and address but never sent the equipment.
Armed with valid credit card numbers, the investigators say, he logged on to the Web sites of Dell, Compaq, Gateway, Hewlett-Packard and Office Depot, among others, and bought computers, monitors and other equipment. He had the companies ship the goods to Mail Boxes Etc. in the United States and Canada, where he had rented mailboxes online under false names.
After delivery, he would ask Federal Express to ship the equipment to Singapore, where a shipping company forwarded it to Dubai. From there, it was shipped on to Karachi and sold by Mr. Iftikhar's company as legitimate merchandise.
Over the course of three years, the investigators concluded, Mr. Iftikhar rented more than 100 mailboxes in New York, Arizona, California, South Dakota, Texas and elsewhere, making up innocuous sounding American names like Brian King.
In 2000, as computer companies tried to collect payment from the owners of the credit cards and as their reports of an apparent fraud mounted, a San Francisco postal inspector began tracking the cases. A United States Customs agent from North Dakota, where some stolen credit cards were issued, soon joined him. Customs investigators managed to trace the Federal Express shipments to Singapore, and then to Dubai. But the trail went cold there.
Investigators were unable to identify who was receiving the goods because Mr. Iftikhar obscured the money trail. He paid Federal Express in cash, for example, using a Western Union office in Dubai that anyone could walk into off the street.
In the end, the technology that made the scheme so easy ensnared Mr. Iftikhar, the investigators said. Aided by the computer companies, they traced the orders to an Internet service provider in South Asia, then narrowed it down to Pakistan.
United States Customs agents and consular officials in Karachi approached Pakistan's Federal Investigation Agency, and what was apparently Mr. Iftikhar's one mistake quickly emerged. The orders had been placed on his home computer, and he made follow-up calls on his own telephone, investigators said.
On Dec. 19, Pakistani officials raided Mr. Iftikhar's office and home. With a conviction, he could face 7 to 10 years in prison.
:eek: 
<img src="graemlins/hmmm.gif" border="0" alt="[Hmmm]" /> <img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
(with their permission)
$3 Million U.S. Computer Theft, Hatched It Seems in Pakistan
By DAVID ROHDE
ARACHI, Pakistan, Jan. 15 ? First, a San Francisco postal inspector tried to unravel it. Then a North Dakota customs agent tried. For three years, no one could solve it.
A mass of names and places hinted to the investigators that someone, somewhere, was stealing millions of dollars of computer equipment from American companies without ever setting foot in the United States.
Advertisement
There were sham auctions on E-bay and Yahoo! Stolen credit cards from across the world. Shipments to more than 100 branches of the company Mail Boxes Etc. in places like North Dakota, New York and Texas. There were also hundreds of Federal Express deliveries to a company in Singapore.
"The primary suspect was creating a very confusing trail for all of us," an American investigator said. "This is one of the most sophisticated ones I've seen."
Last month, Pakistani and American investigators arrested Khurram Iftikhar, a 25-year-old Pakistani college dropout. The case, investigators say, demonstrates the increasing sophistication of Internet surveillance technology by investigators and the global reach of online fraud.
From the comfort of his home and office in Karachi, investigators say, Mr. Iftikhar stole more than $3 million worth of computer equipment. He did it using keystrokes, mouse clicks, phone calls and faxes, as well as occasional two-hour flights to nearby Dubai. There, he rented an apartment, bought a BMW and occasionally paid Federal Express, one of many American companies he is accused of duping.
At home, he appeared to be a successful but low-key young entrepreneur with a computer sales business. He lived at home with his father, a retired civil servant, and his mother, a homemaker. He drove his father's Honda Civic. His company, Fast Track, rented a downtown office and employed 8 to 10 people. "It's not the first one in Pakistan," a Pakistani investigator said, referring to online schemes. "But it's the biggest."
Mr. Iftikhar's lawyer, Muhammad Ilyas Khan, said his client was innocent and accused investigators of planting evidence in his office. He also pointed out a loophole in Pakistani law that could allow Mr. Iftikhar, who is in jail, to be set free. Pakistan has few laws that deal with cybercrimes.
Pakistani investigators said Mr. Iftikhar could be prosecuted under fraud laws.
The investigators said Mr. Iftikhar used the same technique over and over. First, he offered a piece of computer equipment for auction on E-Bay or Yahoo. Bids poured in, and a winner was declared. Mr. Iftikhar collected the successful bidder's credit card information and address but never sent the equipment.
Armed with valid credit card numbers, the investigators say, he logged on to the Web sites of Dell, Compaq, Gateway, Hewlett-Packard and Office Depot, among others, and bought computers, monitors and other equipment. He had the companies ship the goods to Mail Boxes Etc. in the United States and Canada, where he had rented mailboxes online under false names.
After delivery, he would ask Federal Express to ship the equipment to Singapore, where a shipping company forwarded it to Dubai. From there, it was shipped on to Karachi and sold by Mr. Iftikhar's company as legitimate merchandise.
Over the course of three years, the investigators concluded, Mr. Iftikhar rented more than 100 mailboxes in New York, Arizona, California, South Dakota, Texas and elsewhere, making up innocuous sounding American names like Brian King.
In 2000, as computer companies tried to collect payment from the owners of the credit cards and as their reports of an apparent fraud mounted, a San Francisco postal inspector began tracking the cases. A United States Customs agent from North Dakota, where some stolen credit cards were issued, soon joined him. Customs investigators managed to trace the Federal Express shipments to Singapore, and then to Dubai. But the trail went cold there.
Investigators were unable to identify who was receiving the goods because Mr. Iftikhar obscured the money trail. He paid Federal Express in cash, for example, using a Western Union office in Dubai that anyone could walk into off the street.
In the end, the technology that made the scheme so easy ensnared Mr. Iftikhar, the investigators said. Aided by the computer companies, they traced the orders to an Internet service provider in South Asia, then narrowed it down to Pakistan.
United States Customs agents and consular officials in Karachi approached Pakistan's Federal Investigation Agency, and what was apparently Mr. Iftikhar's one mistake quickly emerged. The orders had been placed on his home computer, and he made follow-up calls on his own telephone, investigators said.
On Dec. 19, Pakistani officials raided Mr. Iftikhar's office and home. With a conviction, he could face 7 to 10 years in prison.
:eek: <img src="graemlins/hmmm.gif" border="0" alt="[Hmmm]" /> <img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
Comments
<strong>I turned this guy in. Bastards won't give me props.</strong><hr></blockquote>
i'll give u credit...
*hip hip hurray* MURBOT! *hip hip hurray*
I couldn't remember if you were the eBay's underappreciated fraud agent but was sure that THE person would speak up when I posted.
murbot: have a cookie: