http://www.bankinfosecurity.com/michaels-breach-fraudsters-sentenced-a-4991 By Tracy Kitten BankInfo Security July 30, 2012 Two men were sentenced this week in connection with fraudulent transactions they made with compromised debit cards tied to the Michaels point-of-sale breach. In 2011, banking institutions reported tens of thousands of fraudulent transactions linked to consumers who had visited Michaels craft stores that were affected by the breach. POS and PIN-entry devices at 84 locations in 20 states were later found to have been swapped out with devices manipulated to collect card numbers and PINs. Investigators say 94,000 debit and credit cards were affected by the breach. On June 25, a judge in the U.S. District Court for the Northern District of California sentenced Eduard Arakelyan, 21, and Arman Vardanyan, 23, to 36 months in prison on charges of conspiracy to commit bank fraud. Each also was sentenced to an additional 24 months for aggravated identity theft and five years of supervised release. The court has ordered both to pay $42,000 in restitution. The two men, who were charged March 5, pleaded guilty on March 20, according to a statement issued this week by the Department of Justice. Arakelyan and Vardanyan admitted that in the summer of 2011, they used card numbers stolen from Michaels to create nearly 1,000 counterfeit cards they later used at ATMs in Northern California to withdraw funds from bank accounts. Authorities say 952 debit accounts were affected by Arakelyan and Vardanyan. [...] -- Learn how to be a Pen Tester, CISSP, ISSMP, or ISSAP with Expanding Security online. Come to a free class and see how good and fun the program really is. http://www.expandingsecurity.com/PainPillReceived on Tue Jul 31 2012 - 01:43:15 PDT
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