Identity theft scam used area casinos

NIAGARA FALLS, N.Y. (WIVB) - Authorities say they've cut off a major identity theft operation.

The suspects are from New York City, but a significant portion of the alleged crimes were committed here in western New York and involve massive cash advance withdrawals at Seneca Casinos. Authorities say this case could involve hundreds of out-of-state victims and big money losses.

Tracy Gast, Special Agent in Charge of the Buffalo Secret Service Office, said, "I think the overall scope of the case has not been determined yet. Right now, we're at about $250,000 in loss."

Eight people from New York City and Florida are charged in a suspected counterfeit credit card ring. They're accused of draining accounts, possibly by skimming information from credit cards. Gast says skimming generally involves electronically scanning information from the card's magnetic strip.

"And then use that information to either produce a magnetic strip that duplicates yours on what we call white plastic or anything with a magnetic strip," said Gast.

According to a federal criminal complaint, investigators recovered a significant amount of counterfeit credit card making equipment, including embossing machines, a card reader and blank white plastic cards.

Gast said, "We've got an awful lot of credit card numbers and information we're still sifting through."

What's more, the government alleges that the suspects withdrew hundreds of thousands of dollars in cash advances from ATMs at Seneca Casinos in Niagara Falls and Salamanca. The complaint states that between October and December 2009, over 110 cash withdrawals were made in $2,000 amounts, totaling about $200,000.

"The victims we have right now had not been patrons of the casino. So what we're looking at is where they might have obtained that information," said Gast.

The Secret Service recognized three members of the State Police for their work on the case.

Capt. Craig Hanesworth of the NYS Police said, "The one thing, as law enforcement, that we realize is if we're going to get crime solved, we have to work together."

The suspects were arrested in December and remain in custody. The U.S. Attorney's office tells News 4 there have been similar arrests at casinos in West Virginia and Florida with ties to the group facing charges here in western New York.