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Skimming Devices in Gas Pumps Ais Breach

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Submitted By lfmarkey
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Skimming Devices in Gas Pumps
Lori Markey
Acct 571
15 March 2014

ABSTRACT
This paper explores fraudulent activity committed by using gas pumps to steal financial information from victims. Furthermore, the paper attempts to answer a variety of questions as presented on Page 143 of our text book. Such as the control issues that were breached and how the fraudsters meet the profile of the average perpetrator. Additionally, I will explore elements of the fraud triangle, red flags for fraud, and problems with prosecuting criminals.

Skimming Devices in Gas Pumps In March 2013, four men Garegin Spartalyan, Aram Martirosian, Hayk Dzhandzhapanyn, and Davit Kudugulyan were charged with 426 counts of money laundering, criminal possession of stolen property, grand larceny, criminal possession of a forgery device, and criminal possession of forged instruments (Vance, 2014). The men are from Las Vegas, Nevada except Hayk who hails from California (Vance, 2014). The four along with nine other accomplices were accused of stealing victims banking information and PINS by using skimming machines at gas stations in Texas, Georgia, and Tennessee. The skimming device is put inside the pump with a universal to open the front and only takes between 5 – 10 minutes to install/remove (biggs, 2014). The skimmers that were used connect into the line between the card reader and pump computer to read the PIN input and the magnetic strip and store the information locally (biggs, 2014). The fraudsters can then drive by and pull the data off wirelessly using Bluetooth-equipped phones. Using the stolen data, the quad created bogus banks card to steal $2.1M from unknowing victims utilizing ATMs and then depositing stolen money in bank accounts in New York (Vance, 2014). The other members of the scheme would then withdraw the funds from banks in California and Nevada (Vance,

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