International Cyberfraud Ring that Caused $530M in Losses Indicted

British man arrested in UK over largest US cyber fraud prosecution.
Credit
AFP

British man arrested in UK over largest US cyber fraud prosecution. Credit AFP

The members of the group were directed to "vending" websites serving as conduits to traffic in stolen identities and banking information along with malware and other stolen illicit goods, prosecutors said.

Acting Assistant Attorney General John Cronan described the case as "one of the largest cyber fraud enterprise prosecutions ever undertaken" by the Justice Department.

As of March 2017, there were nearly 11,000 members buying from the site's vendors.

As of March 2017, there were 10,901 registered members of the site, whose slogan was "In Fraud We Trust", the US Department of Justice said.

Infraud members were allegedly responsible for losses exceeding US$530 to consumers and businesses.

Who in the world is the Infraud Organization?

Administrators also meted out punishments to members who broke rules and to members of rival criminal groups.

Super Moderators oversaw and administered specific subject-matter areas within their expertise. Of the six members identified as being in the top two tiers of the organization's leadership, Medvedev was the only one apprehended.

The group, known as the Infraud Organization, were charged with nine counts, including conspiracy to racketeer, wire fraud, and computer crimes.

Rybicki said over a seven-year period the organization cost U.S financial institutions upwards of $530 million.

According to the indictment, the Infraud Organization aimed to be "the premier destination for carding", which refers to purchasing items with counterfeit or stolen credit card data.

The department also alleged that the network provided an 'escrow, ' or third party account, to allow people to launder their money using digital currencies including Bitcoin, Liberty Reserve, Perfect Money and WebMoney. Vendors sold various illegal services to the members, while the moderators acted to help make sure everything worked and that vendors were selling quality products and services. The remaining suspects are still at large and will need to be extradited to the US. Russian Federation generally doesn't have treaties in place with the United States and U.S. allies to extradite criminal suspects inside its borders. He stopped posting on the site in 2015, but was indicted for his alleged role.

Eight other suspects have been arrested in Australia, France, Italy, Kosovo, Serbia and the United Kingdom; all face extradition to the United States. Medvedev is among those arrested, according to the justice department. Most of the others arrested were vendors or VIP members of the group. Below is an organizational chart of those charged.

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