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@BEGIN_FILE_ID.DIZ FEDs Crack
HugePhone-Fraud Ring!
@END_FILE_ID.DIZ
THE SALT LAKE TRIBUNE
MONDAY
OCTOBER 3, 1994
FEDS CRACK HUGEPHONE-FRAUD RING!
LOS ANGLES TIMES REPORTING
In what is believed to be the largest fraud of its kind, an MCI employee
has been charged with stealing more than 100,000 telephone calling-card
numbers that were used to make more than $50 million in long-distance calls,
federal authorities said.
MCI employee Ivy James Lay was alleged to be the main supplier of stolen
card numbers to an international ring of thieves operating in Los Angeles
and at least five other U.S. cities, Spain and Germany, said the U.S. Secret
Service, The federal agency that investigates interstate telephone fraud.
The Secret Service investigation ended in Southern California on Thursday
night when agents seized numerous items from a co-conspirator's home, which
included six computers with pirated commercial copyrighted software and
thousands of calling-card numbers stored on computer disks. Tens of thousands
of customers of MCI, AT&T, SPRINT, and several local telephone companies were
victimized by the scam, the Secret Service said. But those consumers - many
still unaware of the scam - will not be billed for fraudulent calls on their
phone-card numbers, said representatives for MCI, AT&T, and SPRINT. Customers
who suspect their calling-card numbers were illegally used should contact the
customer-service department of their long-distance carrier immediately.
Secret Service sources familiar with the case said the ring was
unprecedented for its sophisticated use of computers and other activities
coordinated on a global scale. According to MCI officials, the ring was more
sophisticated and better organized in comparison to other credit-card and
calling-card scams perpetrated in the past by people who obtained small
amounts of cards by computer hacking or physical means, such as getting
carbon copies of purchases or watching customers enter calling-card numbers
at airport terminals.
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