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How to use the Internet to commit profitable credit card fraud

By Ben Harar
Version 1.0, Rome, 29. July 2010

 

I know what I'm talking about. I'm a victim. This is what got me started. One of my own e-gold accounts has been hacked into, and all the money has been stolen. I tried with e-gold.com to bring some clarity into what happened, but e-gold is doing a great job protecting hackers and thieves.

 

I'm not only a victim but also a researcher and writer. So, I did my homework (after the money was gone), and discovered a multitude of ways by which hackers and the mafia can use e-gold.com to get away with Internet crime, or large-scale crime in general.

 

E-gold.com is essential in practically all the schemes I report about, as it is the great anonymizer of financial transactions.

 

It's so suited for criminal activities that I wonder why the mafia and other kidnap gangs don't use it to clear ransom money.

 

Yes, I want my money back, from channels that are very well protected by e-gold.com. And if they don't rectify what is wrong, then I want them out of business so that my children and the rest of mankind will not be fleeced the same way as I was.

 

And I have a strategy for this: to publish the tricks that work with e-gold.com, so that those Mafia elements that are not yet aware of these tricks will also start using them.

 

When enough people have been defrauded through the use of e-gold.com, I assume that some authorities based in the US (the world's sheriff) will step in and bring the matter to a solution (as they did in Noriega's Panama), and their Bermuda hideout won't protect them.

 

So, what are the steps of using e-gold.com to commit Internet credit card fraud? (Please note: there is a parallel article that gives recommendations on how to protect yourself at each step.)

1. Set up some sites that pretends to sell something. Health supplements at rock-bottom prices are an option. Or a penis enlargement program for 10 dollars. After people have entered their complete credit card data, return a screen that their card could not been verified, and that therefore, it will not be charged. You anway only want to capture complete credit card data.

 

2. Set up an e-gold.com account in precisely the name of the card holder, even with his address details (which you know as all data was willfully remitted when the card owner registered for a purchase with your site).

 

3. Using the victims credit card, you transfer funds into the newly set up e-gold account in the victim's name. This works through a so-called e-currency market maker.

 

4. Set up several more e-gold accounts, each pretending to be in a different country. E-gold.com doesn't check any data when accounts are opened. They will, however, only reveal the alleged account holder upon a court subpoena. It takes just an hour to move any amount through, let's say 100 e-gold.com accounts, each allegedly in a different country. How long will it take me to get a court order in each of these countries, so that e-gold.com will reveal the alleged identity of the thief.

 

5. Use a fake identity card to set up a bank account in India, or Nigeria, or find a poor local to do so for you. (Just say that you want to smuggle money, and offer 100 dollars if he is of help. Then transfer the money from one of the many e-gold.com accounts you have set up.

The system will work primarily because e-gold,com protects the transactions that are done through its system. The whole process takes just 3 or 4 days. Most victims won't even notice that their funds have been looted before they get their next credit card statement.

 

Nothing the credit card companies can revert here, and they likely won't refund the holder, requesting that the transfer of the money into an e-gold.com account of the same name hasn't been effected by the card holder himself.