News

Apple Store Identity Theft Ring Busted

Mathew J. Schwartz

The Secret Service and Manhattan DA have indicted members of “S3,” a group accused of purchasing stolen credit card data on underground forums, creating counterfeit credit cards, and selling stolen Apple gear.

Top 10 Apple Stories Of 2010
(click image for larger view)
Slideshow: Top 10 Apple Stories Of 2010

On Wednesday, authorities announced that they'd broken up a credit card forgery and identity theft ring, known as "S3," that bought products from Apple stores around the country using credit card data stolen from identity theft victims. During arrest raids conducted on Tuesday, authorities said they recovered $300,000 in cash, three firearms, ammunition, and credit-card-forging equipment.


More Security Insights

Webcasts

More >>

White Papers

More >>

Reports

More >>

Manhattan district attorney Cyrus R. Vance Jr. said 27 people have been indicted so far in the joint operation -- which is ongoing -- by his office's cybercrime and identity theft bureau and the Secret Service. Charges include grand larceny, conspiracy to commit crimes, forgery, and possessing forged items.

According to court documents, beginning in June 2008, the Brooklyn-based gang allegedly used underground forums to purchase personally identifying information, stolen by others via identity theft attacks. Purchased information included stolen credit card data, which the defendants used to create counterfeit credit cards.

Authorities have accused Shaheed Bilal (aka "Sha"), 28, of being the S3 ringleader, running operations -- even while incarcerated -- together with his girlfriend, Ophela Alleyne (aka "Philly"), 29. Authorities also allege that Bilal, after his release from jail in December 2010, began using a new email account, rightbackonit@yahoo.com, "to purchase, receive, and share stolen credit card data."

According to court documents, the S3 gang -- comprising, among others, four of Bilal's brothers, who acted as managers, or underbosses -- recruited people known as "shoppers" to buy goods using the counterfeit credit cards. According to authorities, "these shoppers purchased fraudulently obtained electronic goods from Apple Stores in Manhattan and around the country, including iPods, MacBooks, iPads, and gift cards." These were sold to multiple people in Brooklyn who "fenced" the stolen goods.

Authorities have also accused Anthony Harper, aka "Ant" and "Dolla," of being a former shopper for Bilal who broke off and set up his own gang, beginning in September 2010, to run similar operations.

Authorities said that Apple was cooperating with the investigation.

Cutting-edge attacks like Stuxnet and Zeus will be the everyday exploits of the future. Here's what you need to know. That and more--including five best practices to improve the budgeting process for security spending--in the debut all-digital issue of Dark Reading. Download the issue now (free registration required).

Related Reading


Informationweek Discussions

Start the Discussion


InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
Subscribe to RSS

Resource Links