Financial Crime World

Title: “Operation Lino: Romanian Gang Arrested for $31M Australian Credit Card Heist”

Arrest of Seven Individuals in Romania

  • Seven individuals, including a Greco-Roman heavyweight wrestling champion, were arrested in Romania for their role in an Australian record-breaking credit card data theft
  • The arrested group was part of a criminal syndicate that had infiltrated half a million Australian credit cards
  • The theft was valued at AUD30 million ($31 million)

International Operation “Operation Lino”

  • The year-long investigation involved 14 countries
  • Resulted in the dismantling of the criminal syndicate that had infiltrated Australian credit cards
  • The group used stolen credit card data to execute Card Not Present (CNP) transactions or create counterfeit cards for use in Asia, Europe, and the U.S.

Australian Police and Media Update

  • Australian police were first alerted to the fraud case when they received reports of unusual charges on credit cards, all leading back to Romania
  • The victims were predominantly small businesses, service stations, petrol stations, and corner stores
  • No cardholder suffered any financial losses due to the data theft incidents

Australia’s Banking Industry and Fraud Statistics

  • Of the one million cases of bank card fraud reported in Australia in 2011, 65% originated overseas
  • The latest industry figures reveal a concerning trend, with CNP fraud in Australia surging to account for 71% of all fraud value on Australian-issued bank cards

Continuing International Cooperation and Cybersecurity Threats in Australia

  • The same criminal organization has targeted businesses in other countries, and the joint international investigation continues
  • Attorney-General of Australia, Nicola Rox, acknowledged emerging threats of identity theft and cybercrimes
  • A comprehensive inquiry by the Parliamentary Joint Committee on Intelligence and Security in Australia was announced to examine potential legislative reforms against cybercrime threats.

##Best Practices, Policies, and Resources##

  • The committee’s hearings will provide an opportunity to discuss best practices, policies, and resources required to protect Australian businesses and financial institutions from cyber threats.