JACKSONVILLE, Fla. – Authorities believe they have cracked a ring that has been depositing stolen, counterfeit or dormant checks into ATMs with legitimate accounts, then withdrawing or using the funds to make fraudulent purchases.
The ATM cards at VyStar CU, Community First CU and other credit unions were provided by members in exchange for a percentage of the funds withdrawn.
The members, who were paid as much as $500 for their cards, often report that their cards are stolen or lost after the thefts. Many are reimbursed for losses they claim. As many as 100 accounts have been involved.
The scheme is similar to one in San Diego where a local gang was recruiting legitimate members of Navy FCU to give them their debit or ATM cards numbers, then draining funds from the accounts before the cards were reported stolen.
At least five individuals have been arrested in the Jacksonville caase so far with more expected, according to police.
Among those arrested were Tony Fudge, 31, an accused organizer; Ophel Day, 28, an accused recruiter, and Jacob Dunn, 21, an account holder. Fudge allegedly deposited at least $8,300 in worthless checks over a five-day period into a VyStar account.
He is accused of withdrawing $2,240 in cash and buying goods at Wal-Mart for another $3,980. Surveillance video of deposits and cash withdrawals is part of the evidence, according to the police report.
Day is charged with providing Fudge with account information, some of which was bought from a woman shopping at the Regency Square mall.
Dunn is charged with reporting that his VyStar ATM card and PIN were stolen, though police later learned the information was sold to a co-worker.
Vystar lost more than $1,000 on Dunn's account, which actually contained $40, an arrest report said.
