Two arrested for international credit card fraud in Delhi

June 20th, 2008 - 11:09 pm ICT by IANS  

New Delhi, June 20 (IANS) Two youths, who would procure Indian credit cards and re-write the magnetic information on them with that of American banks, were arrested here for fraud, the police said here Friday. According to police, the two - Manoj Gupta (24) and Saurabh Dwiedi (25) - have worked in leading multi-national banks in the past where they hit upon the idea of loading local credit cards with magnetic memory of international credit cards.

Malaysia-based Mohammad Hassan provided the magnetic information of international credit cards to them on e-mail, the police added.

“The owner of the swipe machine is taken into confidence and he swipes the card for whatever amount the credit card allows, depending on the credit limit of the card. As soon as he swipes the card, the money is electronically transferred into the account of the swipe machine owner from the account of the actual owner of the card,” a police officer said.

The swipe machine owner then takes a cut of about 5-6 percent of the transaction and pays the duo cash of the remaining amount.

“The genuine owner in the US receives an outstanding credit bill by the next billing cycle. He contests the inflated bill, as he had never left the US. The loss is either borne by the bank or by the insurance company, and since the fraud occurs in India no one is likely to pursue the matter from the US,” the officer said.

The duo told the police that since April 2008 they had swindled nearly Rs.1 million.

“The duo was arrested Thursday from their office in Paschimpuri area in west Delhi. On investigation, it was found that these credit cards contained magnetic data of international banks like Citibank International US, Chase Bank US and Capital One Bank US,” the officer added.

“About 18 credit cards of various banks, five forged PAN cards, a data reader machine, Rs.10,000 cash and a swipe machine were seized from them.”

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