18 charged in massive credit card fraud ring

NEWARK, N. J. — Eighteen people were charged in what may be one of the nation’s largest credit card fraud rings, a sprawling international scam that duped credit- rating agencies and used fake identities to steal at least $ 200 million, federal authorities said Tuesday.

Paul Fishman, the U. S. attorney in Newark, described an intricate Jersey City- based con that began in 2007, operated in at least 28 states and wired money to Pakistan, India, the United Arab Emirates, Canada, Romania, China and Japan.

The group used at least 7,000 fake identities to obtain more than 25,000 credit cards, Fishman said.

Participants set up more than 1,800 mailing addresses, creating fake utility bills and other documents to provide credit card companies with what appeared to be legitimate addresses. Once participants obtained the cards, they started making small charges and paying off the cards to raise their credit limits.

They then sent fake reports to credit- rating agencies, making it appear that cardholders had paid off debts, setting the stage for sterling credit ratings .

Fishman said once the credit limits were raised, members would take out a loan and not repay the debts.

The group also created sham businesses that accepted credit card payments, Fishman said. The group would run the credit cards through the machines, keeping the money.