Image Courtesy of freedigitalphotos.net/ratch0013
Students watch out, this scheme is targeted at you. This past Wednesday, federal and state authorities charged 29 individuals with “cracking cards” – a modern day bank fraud scheme.
Cracking cards occurs when leaders recruit younger individuals to open bank accounts, and then those younger individuals provide the leaders with the personal identification numbers associated with those accounts in exchange for fast cash. After the card crackers get the PINs, they deposit fake checks into the bank account, the bank credits the funds, and then the cash is withdrawn.
Prosecutors believe the cracking card scheme, which ran from August 2011 through September 2013, is rooted in the south side of Chicago and has gained popularity through rap music, social media, and college campus recruitment. Students at Northern Illinois University in DeKalb have been targeted as potential participants in the scheme. The defendants posted private recruiting messages on Facebook such as the following:
“Yo u don’t know me but we can make some cash together my brother works at citi bank and he puts money on my account so I could do u a favor and have him put money on your account. If u wanna make 1900 all u would have to do is open up a citi bank account n they will give u a temp card we would be able to do it the next day from the time u get the card it’s 100 to open the account but if u don’t got the money I will loan it too u if this something u wanna do hit me back I will give more details!!! u can do this every week No BS! Hit me back asap!.. this is not SPAM HE CAN ALSO PUT MONEY ON ANY BANK ACCOUNT!”
United States Attorney Zachary Fardon warned all individuals to beware of promises for fast cash. The federal defendants caused more than $1.7 million in bank losses. Victims of the cracking cards scheme include CitiBank, U.S. Bancorp, JP Morgan Chase & Co, Bank of America Corp.
The defendants refer to themselves as “Rack Boyz” and have produced YouTube music videos promoting their criminal enterprise. The 16 federal defendants face sentences of between 5 and 30 years, and the 7 state defendants face charges including continuing a crime financial enterprise, which carries a maximum 15 year sentence.
So students, beware! Think twice before agreeing to participate in a fast cash scheme. If you have any questions regarding the cracking card scheme, contact Laura Law. We are here to answer your questions!
