SA link to global internet scams

Cape Town - The South Africa-based members of a global internet crime syndicate are suspected to have defrauded hundreds of US internet users out of millions of dollars by ensnaring them in a complex web of scams, even carrying out long-term fictitious online romantic relationships with their unsuspecting victims.

The syndicate reportedly created scores of fake profiles on dating sites and set up hundreds of fake e-mail accounts to convince people they met online to ship electronic goods or wire money to their bank accounts in Pretoria.

The goods would then be resold, and the money withdrawn from bank accounts.

In total, the syndicate may have tricked hundreds of US victims into becoming their unwitting accomplices, according to a 33-page indictment filed in a US federal court, which alleges that nine Nigerians and one South African arrested by the Hawks were part of a “transnational organised crime enterprise” spanning South Africa, Nigeria, the US and Canada.

They were arrested last year, and this week, the US Department of Justice announced that six of the suspects had been extradited from South Africa to the US, where they face decades in jail if convicted. Another two suspects were extradited earlier this year.

In total, the 20 accused from Nigeria, South Africa and the US face nine counts of fraud, including mail fraud, wire fraud, bank fraud, identity theft, theft of US government funds and money laundering.

The group’s dealings were brought to the attention of US authorities in October 2011.

That month agents from Homeland Security Investigations in Mississippi started investigating a case of fraud, after a woman reported falling victim to a so-called “sweetheart scam”.

The woman became suspicious after she received a package in the mail from someone she met online with the request that she reship it to Pretoria.

After investigating, US agents discovered the package had been bought using stolen personal identity information and fraudulent credit card information of US citizens.

The more they investigated, the more they uncovered.

Their investigation came to be known as “Operation Scams-R-Us”.

It grew to involve a number federal agencies in the US, Canadian authorities and Interpol, and, on the South African side, the Hawks, SAPS, the National Prosecuting Authority and the Department of Justice and Constitutional Development.

The alleged South African leg of the syndicate was raided by the Hawks in May last year, as part of a larger crack down on the group that included arrests in Canada and three US states.

Officials raided premises in Pretoria’s suburbs of Sunnyside, Waverly and Rietfontein, arresting nine Nigerians and one South African and confiscating electronics and documents that they handed over to their US colleagues.

The latest version of the indictment, which has been updated as more defendants come to light, lists 12 individuals from South Africa as defendants: one South African and 11 Nigerians living in South Africa.

To create the scam, the syndicate is alleged to have first bought personal identifying information, stolen credit card numbers and banking information from hackers operating on “underground forums”.

Internet sites where hackers sell data to the highest bidder, exist mostly on the darkweb, a “walled off” section of the internet only accessible with special software that hides a user’s identity.

The syndicate’s next step involved using the stolen data to open new credit card accounts, buy pre-paid debit cards and open false cellphone accounts in the US.

This allowed it to buy goods (mainly electronics such as smartphones, tablets, computers) and withdraw cash from ATMs.

At this stage the syndicate allegedly moved on to the most personal part of their scam; convincing unsuspecting people they met on dating sites in the US to ship the goods or wire the cash to South Africa.

While dating sites warn users against falling prey to scams, specifically warning against sending people money by wire transfer (“the sender has no protections against loss” states one site) the syndicate was apparently successful in “hundreds” of cases.

While some victims were ensnared on online dating sites, others replied to bogus ads for “work at home”. schemes.

Weekend Argus