ATM Fraud Scheme Comes Crashing Down

Only in New York. And New Jersey. And Pennsylvania. A foursome of so-called "financial whizzes" apparently worked together on a multi-year ATM scheme which, according to reports by the New York Post, bilked banks in these states of up to $1 million.They were all college buds who had stayed in touch since their days at New York University.

Believing that "simple is better," the crooks didn't employ ATM skimming devices. Nor did they produce counterfeit ATM cards. Rather, they would set up bank accounts, then disguise themselves on their trips to the ATMs to withdraw money, later claiming they were victims of ATM theft. They would then call the banks and make a stink about wanting their money back. One of the perps (a lawyer) was particularly brazen in his hounding of the victimized banks, according to the article.

Authorities believe approximately 50 banks were targeted in the scam. According to the Post, law enforcement caught on after a former Brooklyn homicide detective working as a bank investigator called another bank for video footage of the ATMs and they compared notes.

Just goes to show that low-tech fraud is alive and well.