Fraud Alert: Update on Skimming Investigation

Earlier this year, we alerted you about fraudulent activity involving a skimming device that was retrieved from an automated fuel dispenser in Portland, Maine. The device utilized a SIM card to transmit payment data in real-time—including PIN information—which helped fraudsters generate counterfeit cards.

Upon further investigation, it was determined that the Portland scam was part of a larger card skimming effort targeting cardholders in Connecticut, Maine, Massachusetts, and New Hampshire, jeopardizing nearly 5,700 credit and debit card account numbers.

On Monday, federal authorities announced an arrest was made in the case. Luis Angel Naranjo Rodriguez, 29, of Hialeah, Florida, was arrested in Massachusetts and charged with one count of possessing 15 or more counterfeit access devices (debit and credit card account numbers) and one count of possession of device-making equipment (skimming devices).

According to the Justice Department, the charging statute for using a counterfeit access device provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possessing device-making equipment provides for a sentence of up to 15 years in prison, three years of supervised release, and a fine of $250,000.

The League and Synergent aided the Justice Department’s investigation into this matter by providing transactional data analytics as well as subject-matter expertise to agents working on the case.

We will continue to keep you informed about new fraud trends and activity. Protecting your credit union and your members against fraud is our highest priority!