Wednesday, July 13, 2005

WSJ covers the Prep Felon

From today's Wall Street Journal (to read entire story online, subscription required)

July 13, 2005; Page A1

At 19 years old, Douglas Cade Havard was honing counterfeiting skills he learned in online chat rooms, making fake IDs in Texas for underage college students who wanted to drink alcohol.

By the age of 21, Mr. Havard had moved to England and parlayed those skills to a lucrative position at, one of the biggest multinational online networks trafficking in stolen personal data. Having reached a senior rank in the largely Russian and Eastern European organization, he was driving a $57,000 Mercedes and spending hundreds of dollars on champagne at clubs and casinos.

Now 22, Mr. Havard is in a Leeds prison cell, having pleaded guilty to charges of fraud and money laundering. The Carderplanet network has been shut down.

As other similar groups thrive and proliferate, Mr. Havard's case provides a rare insight into the underground marketplace for stolen information, a surging white-collar crime of the 21st century. It affects as many as 10 million Americans at a price tag of $55 billion to American business and individuals, according to industry and government studies.

While banks typically compensate customers for fraudulent losses, victims can spend hundreds of hours repairing the havoc wreaked on their personal records and finances and often end up paying legal fees to do so. Sometimes, ID-theft victims are forced to pay off the debt racked up in their name by fraudsters. In the most insidious cases, they are arrested for crimes committed by the person who stole their identity.

Most identity theft still occurs offline, through stolen cards or rings of rogue waiters and shop clerks in cahoots with credit-card forgers. But as Carderplanet shows, the Web offers criminals more efficient tools to harvest personal data and to communicate easily with large groups on multiple continents. The big change behind the expansion of identity theft, law-enforcement agencies say, is the growth of online scams.

Police are finding well-run, hierarchical groups that are structured like businesses. With names such as Carderplanet, Darkprofits and Shadowcrew, these sites act as online bazaars for stolen personal information. The sites are often password-protected and ask new members to prove their criminal credentials by offering samples of stolen data.

Shadowcrew members stole more than $4 million between August 2002 and October 2004, according to an indictment of 19 of the site's members returned last October by a federal grand jury in Newark, N.J. The organization comprised some 4,000 members who traded at least 1.5 million stolen credit-card numbers, the indictment says.

(More at WSJ online, but subscription is required.)


Blogger Candice B. said...

Hey - Cool blog, nice layout! Checkout my people finding blog if you can.

10:27 PM  
Anonymous Anonymous said...

make money online google adsense I have found a proven method anyone can implement to very easily earn an extra $500, $1,000 or even $5,000+ every single week, with only 15 minutes of your time, and create a significant ongoing monthly income. This method is a no-nonsense, set it and forget it system, which will virtually run on 100% autopilot. People just like you are earning enough money to quit their jobs within the first month. Stop worrying about the bills, cancel your daily commute, never leave your family for a job that is making someone else rich, and start living your life the way YOU choose! Affiliate Cash Vault! New fail-safe system virtually runs 100% on autopilot. Just set it and forget it! Otherwise you will need good debt consolidation

1:02 PM  
Anonymous Anonymous said...

The Tax Return Crack-Up<2>
I was not shocked because this was old news -- practically ancient, in fact. In R. Microsoft Office Emmett Tyrrell, Office 2010 Jr.'s most recent book The Clinton Microsoft Office 2010 Crack-
Up, page fiv Office 2007 e, paragraph two, we learn that in Bill Clinton's "first four years out of the White H Microsoft Office 2007 ouse, he ea Office 2010 key rned over Office 2010 download $43 million Office 2010 Professional after
expenses... Microsoft outlook "
The next Outlook 2010 page directs Windows 7 us to Appendix Microsoft outlook 2010 I, a list of the conniving couple's fees for speeches and book royalties and other income. The first

1:48 AM  

Post a Comment

Links to this post:

Create a Link

<< Home