In what could be one of the biggest high-tech frauds involving credit cards unearthed in recent times, the Chandra Layout police have busted a racket and arrested three persons, recovering electronic goods worth Rs 7 lakh -- including 114 original credit cards and 16 fake ones -- from them.
   The arrested are Nagaraj (34), a BSc dropout residing in Banashankari 2nd Stage, Srikanthapal (37), a BE from Tiruchi in Tamil Nadu, and Saiprasad (27), a BCom from Chennai.
   Commissioner of Police N Achutha Rao told reporters on Friday that the accused had cheated several electronic appliances dealers and petrol bunk owners. Most of the retrieved cards belonged to NRIs. The police suspect that several gangs operating in India and abroad could be involved in the racket. “It is just the tip of an iceberg and the police would soon detect more such frauds,” Mr Rao hoped.
   Joint Commissioner of Police (Crime) Gopal Hosur said the cards were of  22 banks in India and abroad. “Implications of this fraud could be far-reaching. The police are seriously considering taking the help of banking experts to unearth more details. It’s neither the customers nor the banks, but insurance companies that incur losses due to the fraud,” Mr Hosur stated and hinted at the police approaching Central agencies to dig up more details.
   DCP (West Division) K V Sharat Chandra said a few account-holders staying abroad are under the police scanner. The possibility of these account-holders and the accused having entered into a nexus for monetary benefits by cheating insurance companies cannot be ruled out, he said. The accused have admitted that some account-holders gave them details of their cards and directed them to withdraw money using fake cards bearing the same number.
   “Within minutes, after withdrawing the money in India, the account-holder would approach the bank and lodge a complaint that his account is blocked and some of his money is missing. He would produce passports and other documents to validate that he was not in India when the cash was withdrawn. “The insurance agency would then settle the matter by paying him for the loss. The withdrawn money would be shared between the account-holder and the one who withdrew the money,” Mr Sharat Chandra said.

BREAKTHROUGH
   Chandra Layout police inspector B Jagannath received information on June 9 that one Nagaraj was trying to sell mobile phones without documents. He arrested Nagaraj and recovered three mobile phones, six credit cards and three fake currency notes of Rs 100 each.
   Nagaraj disclosed that he was using a high-end scanner-cum-printer to ‘print’ currency notes. The police raided Nagaraj’s residence on June 11 and recovered a magnetic strip reader/writer used to ‘create’ credit cards, a printer-cum-scanner, more than 100 credit cards of different banks and electronic goods worth Rs 7 lakh. On being grilled, Nagaraj revealed the details.

NRI LINKS
   A few persons, staying abroad, would supply plain plastic cards and stolen credit cards to ‘operatives’ in India. They would transfer the details on the credit cards to the plain cards with the help of a magnetic strip reader/writer.
   After the data is transferred, they would purchase electronic goods and sell the same to others, offering discounts.