UK gang makes £3.5m from cloned credit cards

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LONDON - Prosecution lawyers at Southwark Crown Court in London have alleged that a gang of five fraudsters turned their London flat into a credit card cloning factory - stealing £3.5 million in 11 days.

The prosecution alleges that between September 28 and October 8, 2008, the men went on a shopping spree that included £645,000 worth of goods in the UK alone. Police raided the flat and found fake cards, counterfeiting equipment and software for manufacturing clone payment cards.

The alleged fraud factory targeted Barclaycard as cardholders migrated from the Goldfish credit card business it acquired from Discover Financial Services earlier in 2008.

Four of the defendants, Khi-San Voong, Qiu Yeu, Qiang Xue and Dauy Chung, deny charges of conspiracy to defraud. The fifth defendant, Cai Caixa, has already pleaded guilty.

Card fraud cost the UK £610 million last year, according to industry payments association Apacs. Increased scrutiny and heightening fiscal pressures mean incidences of fraud are expected to rise with the recession.

The trial continues.

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• Topics
• Credit cards
• Financial crime
• Fraud
• Regulation