Prevent Identity Theft Ring www.IDTheftSecurity.com

Police in New York City say they've cracked one of the largest and most sophisticated identity theft schemes ever, one that put thousands of restaurant diners at risk. According to authorities, waiters and waitresses used these small devices to swipe and steal credit card information, and then that data was used to make $3 million worth of illegal purchases. So far, 13 people have been indicted. Robert Siciliano is the CEO of IDTheftSecurity.com. Robert, great to see you today.

Thank you.

So you're saying that every time people would go into these certain restaurants and hand over their credit cards to pay for their meals, a certain number of waiters or waitresses were taking it and stealing the information?

They were simply swiping the credit card, storing that data in what's called a wedge-type device. They then turn that wedge-type device over to someone who would then turn that information into an actual credit card. They had presses that would actually create credit cards with the logos and everything, and then they'd go into retail stores throughout New New York, and they actually resold all the different electronic products that they bought to other retailers who then sold them back to the general public.

All right, so we're showing the devices right now. How small are they? I mean, can they easily hide in someone's pocketbook or next to the computer where the waiters or waitresses are swiping your credit card to pay for your meal?

The Wedge device is no bigger than a pack of cigarettes, so it fits right into the palm of your hand or in your coat pocket or right on the counter next to the cash register. And again, the device just simply records the information off the magnetic strip. Unfortunately, credit cards are that easy to compromise, and there's no real security in credit cards. So as long as that's the case, this crime will continue to flourish.

You know, I understand that it was the banks that led law enforcement to this identity theft ring. How many people do they think were affected by this?

Well, they've so far indicted 13, and my guess is that there's a lot more. You have the people at the hierarchy up top who are responsible for delegating all the responsibility. You have the 13 that were actually indicted. More than likely, most of them are waiters and waitresses. Then you have all the different mules that went out to all the different retailers and bought all the different product and then resold it back to other retailers again so you and I would purchase it for a higher price.

And so then I guess it would be up to the banks to go and find any customer that had ever passed through these restaurants and go through and just in case change their credit card accounts.

Well, what they had determined was that there were Asian restaurants throughout the city that all the different breaches had occurred. And so what they had done was they set up a sting and they had gone to all these different restaurants, and ultimately when they found out that their cards had been compromised, they started to arrest waiters and waitresses. And then obviously those patrons who had gone to those different restaurants now have to pay closer attention to their credit card statements.

Yeah, and if your bank is forcing you to change your credit card statement or credit card number, Then you have to go and change everybody who bills you automatically and things like that. What a pain. And do they think they're going to have more problems? Are they going to find more people here?

Well, my guess is that now anybody else is still involved, they're going to be put on notice, obviously. But these credit card thieves, they're very greedy, and as long as they can get away with it and they can fly under the radar, they're going to keep doing it.

Robert Siciliano, thank you so much, Robert. Appreciate your time.

Thank you.