Gang charged in $422,000 ATM scamAuthorities in New York have arrested four people accused of stealing $422,000 by exploiting a regulation requiring banks to reimburse the accounts of customers who claim their ATM cards have been used without their permission.
The four defendants - Lam Dang, Eric Manganelli, John Tluczek and Marzena Tluczek - are charged with making false claims totalling more than $700,000, to more than 20 banks, including HSBC, Wachovia and Chase.
In each case, the defendants opened accounts and padded them with large deposits over the course of several months before draining them again, with withdrawals of $500 to $1000 per day, say prosecutors.
Once the accounts were empty, the scammers would contact the bank and say their ATM cards had been stolen or lost and that the withdrawals were unauthorized. After the banks reimbursed the "stolen" money, the defendants would close the accounts, according to the indictment.
The four are accused of exploiting regulation E of the federal Electronic Fund Transfer Act, which requires banks to reimburse victims within 10 days of reporting the fraud.
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