International Cyberfraud Ring that Caused $530M in Losses Indicted


"As alleged in the indictment, Infraud operated like a business to facilitate cyber fraud on a global scale", Cronan says.

According to the indictment, Infraud members held defined roles within the organisation's hierarchy.

As a result of an global investigation into Infraud's activities code-named Operation Shadow Web, five suspects have been arrested in the United States.

The U.S. Department of Justice arrested 13 cybercriminals from 17 countries, including the United States, from the Infraud dark web criminal carding and malware organization, the agency announced Wednesday.

The Infraud Organization allegedly reaped $US530 million ($A742 million) in losses to USA financial institutions, merchants and consumers. As of last March, it had nearly 11,000 registered members.

A nine-count superseding indictment by a federal grand jury in Las Vegas, unsealed on Wednesday, charges 36 individuals with a range of offenses, including racketeering conspiracy.

The indictment alleges that the "Infraud Organization" was created in October 2010 by Svyatoslav Bondarenko of Ukraine. That service was run by Sergey Medvedev, a co-founder of the Infraud site, according to the indictment.

The indictment is one of the largest undertakings in history as Infraud sold the personal information of millions on the black market.

Under the slogan "In Fraud We Trust", according to the indictment, the crime ring grew to almost 11,000 members and became a premier destination for carding - or the buying of online goods with counterfeit or stolen credit card information.

"Members and associates strive to achieve shared anonymity to remain as anonymous as possible in order to evade law enforcement and other real-world or offline consequences for their fraudulent and criminal activities", the indictment stated.

Suspects arrested in France, the United Kingdom, Italy, Australia, Kosovo and Serbia were awaiting extradition.

In addition to facilitating the sale of stolen information, the network also provided an escrow account people could use to launder their proceeds using digital currencies including bitcoin, Liberty Reserve, Perfect Money and WebMoney.

The members of the group were directed to "vending" websites serving as conduits to traffic in stolen identities and banking information along with malware and other stolen illicit goods, prosecutors said.

United States investigators called Infraud one of the largest cyberfraud enterprises they'd ever prosecuted.