Prosecution Of Cross-Border Credit Card Cloning Crimes
Case 1: Armenian Organized Card-Cloning Syndicate
Facts:
A criminal group in Armenia stole bank card data and created fake cards, targeting ATMs in Russia, Mexico, and the USA. The mastermind, M. Tumasyan, obtained embossing machines, hologram equipment, and blank cards to produce counterfeit bank cards. They withdrew over USD 436,500 from ATMs abroad.
Legal Issues:
Organized group activity.
Forgery and counterfeiting of financial instruments.
Theft of foreign bank funds.
Prosecution & Outcome:
Tumasyan was charged under Armenia’s criminal code for forgery, robbery in an organized group, and money laundering. He was sentenced to 8 years imprisonment. The prosecution successfully applied Armenian law extraterritorially because the key actors were located in Armenia, despite crimes occurring in multiple countries.
Lesson: Domestic courts can prosecute masterminds even if the actual withdrawals occur abroad, emphasizing the organized nature and use of counterfeit card-making equipment.
Case 2: International Ring in Armenia Involving Romanians and Latvians
Facts:
An international gang, including three Romanians and a Latvian, used 160 counterfeit cards to steal roughly USD 263,000 in Armenian banks. Blank cards were sourced abroad, and the gang used foreign bank accounts to process transactions.
Legal Issues:
Cross-border card creation and usage.
Use of foreign bank accounts to conceal stolen funds.
Organized crime with international membership.
Prosecution & Outcome:
The perpetrators were arrested in Armenia. Charges included forgery, fraud, and money laundering. Authorities traced the movement of funds and seized counterfeit cards and equipment.
Lesson: Even when perpetrators are foreign nationals, local prosecution is possible if criminal acts are committed in the host country. International coordination is vital to track bank accounts and assets.
Case 3: Mumbai Gang Targeting Foreign Nationals (India, 2018)
Facts:
Five individuals cloned debit and credit cards of tourists in Mumbai and other Indian cities. Card data was obtained from open sources, and fake cards were used at colluding POS machines to withdraw cash and purchase goods.
Legal Issues:
Targeting foreign nationals for fraud.
Collusion with merchants for illegal card use.
Use of cloned cards for both cash withdrawal and shopping.
Prosecution & Outcome:
The Mumbai Police arrested the gang and charged them with cheating, fraud, and criminal conspiracy. Evidence included POS machines, cloned cards, and transaction logs.
Lesson: Prosecution must focus on both the creation of cloned cards and the local infrastructure (merchant collusion) that enables the fraud. Foreign victims require coordination with their home banks.
Case 4: Delhi Credit Card Cloning Case (India, 2016)
Facts:
Two men were arrested for creating 87 cloned debit/credit cards of foreign nationals. They used an embossing machine imported from France to manufacture cards. The fake cards were used to buy high-value goods such as laptops and gold, which were then sold in the grey market.
Legal Issues:
Import of equipment for counterfeit card production.
Fraud against foreign cardholders.
Sale of goods purchased with cloned cards as a form of money laundering.
Prosecution & Outcome:
Police seized the embosser machine, fake cards, and evidence of goods purchased. Charges included forgery, fraud, and money laundering. Convictions were obtained based on physical evidence and transaction tracing.
Lesson: Prosecution can leverage seizure of equipment and goods purchased to prove the chain of criminal activity. International aspects include targeting foreign cardholders and importing card-making machines.
Case 5: Sri Lankan Nationals Cloning Cards in Bangalore (India, 2013)
Facts:
Two Sri Lankan nationals were arrested for using card data obtained from France to produce counterfeit cards in India. Blank cards were sourced from Malaysia, and the fake cards were used to buy goods in Chennai and Bangalore.
Legal Issues:
Cross-border supply chain for card data and blank cards.
Fraud and forgery.
International collaboration and trafficking of card information.
Prosecution & Outcome:
Authorities charged the suspects with fraud, forgery, and conspiracy. Evidence included emails, blank cards, embossing machines, and transaction records. The arrests demonstrated coordination between cyber forensics and local investigation.
Lesson: Card-cloning operations often involve multiple countries for sourcing data and equipment. Prosecution must trace the entire supply chain to build a solid case.
Case 6: Ireland/UK Romanian Gang Skimming Case (2021)
Facts:
Two Romanian gang members installed “deep insert skimmers” at bank ATMs in the UK, stole card data, and created fake cards. They used the cloned cards in Dublin to purchase goods, including cigarettes, which were resold.
Legal Issues:
Skimming devices used across borders.
Card fraud in one country using data stolen in another.
Organized international criminal activity.
Prosecution & Outcome:
The Dublin Circuit Criminal Court sentenced the gang members for organized fraud and forgery. Authorities used ATM surveillance footage, seizure of skimming devices, and transaction logs to secure convictions.
Lesson: Skimming operations illustrate how a crime can span multiple jurisdictions. Courts focus on organized activity, use of devices to clone cards, and conversion of goods for profit.
Key Patterns Across Cases:
Card-cloning operations are almost always organized and transnational.
Criminals use a mix of technology and collusion (POS machines, ATMs, foreign bank accounts, imported embossers).
Victims are often foreign nationals, making prosecution coordination important.
Prosecution relies on physical evidence, forensic logs, and tracing the chain of funds and goods.
Sentences tend to be significant, especially when the operation is large-scale or involves international networks.
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