Business

Ring Busted In 'Largest Ever' Identity Theft Case

41 Million Card Numbers Stolen; Hackers Used Sniffer Programs Designed To Retrieve Pin Numbers

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NEW YORK (CBS) ― Eleven people are now facing charges in a massive international credit card scam.

Investigators say the suspects stole more than 41 million debit and credit card numbers.

What's most disturbing about the crime ring is that shoppers became victims without ever losing their purses or wallets. The hackers stand accused of stealing retailer's private information without ever leaving the parking lot.

It seems that every shopper's worst fear has come to life, as consumers have become a victim of technology that they rely on every day.

Becoming a victim of technology we rely on every day.

"It's a scary thing to think about," Colin Montoute, a Manhattan resident, said.

Federal officials say a now busted international hacker ring, armed with laptop computers, operated with amazing efficiency - stealing some 41 million credit and debit card numbers wirelessly.

"It makes me feel very helpless," Laura Quinlan, from Miami Beach, said.

Investigators say the crime ring used a technique called "war-driving" to target open, unsecured wireless networks at several large retailers, including TJ Maxx, BJ's Wholesale Club, Office Max, Boston Market, and Barnes & Noble.

"War-driving is simply driving around in a car, with a laptop computer, looking for accessible wireless computer networks," US Attorney Michael Sullivan said.

The ring then allegedly sent the stolen information to computer servers in Ukraine and Latvia, where it was stored and sold.

Targeting the retailers wasn't that hard at all. Standing almost anywhere in New York City, a handheld device can pick up several unsecured Wi-Fi networks. It's possible that any one of them could provide access to someone's private information

A worldwide network of suspects is accused of running the operation, three of whom are from the United States. The others hail from Estonia, Ukraine, Belarus, and China.

"As far as we know, this is the single largest and most complex identity theft case that's ever been charged in this country," US Attorney General Michael Mukasey said.

"I was questioning who I was doing business with," Montoute said. "[I was wondering] what companies, where I use my card, and thinking about how secure their systems are."

The companies say they've suffered major losses. TJ Maxx alone puts damages at more than $130 million dollars, including legal settlements with shoppers whose bank accounts were raided with stolen debit and pin numbers.

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