New Fraud Spree Investigated

Retailers, Restaurants Struck by String of Crimes Targeting Cards

By Linda McGlasson, Managing Editor

The arrests of two men in Florida on multiple identity theft charges represent "just the tip of the iceberg" in payment card crimes against merchants and consumers across the U.S., according to law enforcement officials.

While these two suspects aren't believed to be the masterminds behind the string of fraud incidents that have hit retail chains such as Hancock Fabrics, the spike in the number of these crimes is undeniable, investigators and fraud analysts says.

A recent example: On June 3, Buffalo Wild Wings Restaurant near Oklahoma City was one of several regional restaurant chains to report being hit with credit and debit card fraud. Law enforcement has not yet said what the source of the credit card fraud was, but Elaine Dodd, head of the Oklahoma Bankers Association's fraud division, says it may have been a skimmer or point-of-sale compromise. "[Fraudsters] are using multiple routes to get card data because they know it can be done," Dodd says.

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