Fraud Doesn’t Pay

Fraud seems like an easy way to make a quick buck, but the following fraudsters found out the hard way that crime doesn’t pay…

A recent article in the Pasadena Star News reported that an employee of Pasadena Water & Power pleaded no contest to one count of credit card fraud and other charges that included: petty theft, identity theft, and attempted grand theft. The employee, identified as Rhonesia Bass, was employed as a customer service representative for Pasadena Water & Power and her job was to accept credit card payments for utilities over the phone. She obtained credit card numbers from six customers and then used the credit card numbers to purchase personal items online as well as paying a friend’s utility bill.

As a result, Pasadena Water & Power has had to re-evaluate the way that their customers pay and the security of those transactions. Additional safeguards have been added for the payments made via the telephone. Payments made through the automated systems, direct debit, or the website was not affected.

Rhonesia Bass was sentenced to three years probation, 30 days of community service, restitution, and credit for 18 days served in L.A. County Jail.

Great Falls, Montana recently made the news as a former co-owner of a restaurant there was convicted and sentenced to one year in federal prison for fraudulently using his customers’ credit cards. According to the Associated Press article published June 3, 2008, Kevin O’Connell was also ordered to pay a little over $17,000 in restitution. The restaurant O’Connell opened with two business partners in Great Falls was the Indigo Lounge. In March of 2005, patrons as well as credit card companies found fraudulent charges on their statements. One customer’s credit card had at least nine unauthorized charges totaling $30,000. Apparently, O’Connell turned to theft when he could not repay business loans.

Wild Wings customers and the police in Alpharetta, Georgia are working with the Georgia Bureau of Investigation to find out who has been using their credit card numbers fraudulently as well. According to CBS affiliate Channel 46 News, no arrests have been made, but the investigation continues as more victims come forward. There is a possibility according to some of the evidence, that this fraud may be part of a national and/or international fraud ring.

BankCard Central watches out for our merchants. We implement the highest standards when it comes to Risk Management and Security. If you suspect a fraudulent transaction please contact our Customer Service Department or the Risk Management Department to discuss your concerns.

Information gathered from the following sources:

“Fraud conviction for Pasadena Water & Power service rep” published 06/04/2008. http://www2.pasadenastarnews.com/news/ci_9480480

“A former co-owner of a Great Falls restaurant has been sentenced” published 06/03/2008. http://www.montanasnewsstation.com:80/Global/story.asp?S=8419803

“Wild Wings Customers Become Targets” posted 05/29/2008, updated 06/02/08. http://www.cbs46.com/fultonnews/16422866/detail.html