Alaskan Credit Union Helps Feds Capture Alleged International ATM Fraudster

An Alaskan credit union was instrumental in helping federal investigators capture an international criminal who is suspected of using fraudulent payment cards and ATM skimming devices. The scheme led to financial losses for hundreds and potentially thousands of credit union members and bank customers, according to federal prosecutors.

Last week, U.S. Attorney Bryan Schroder said in a prepared statement that because of the large number of potential victims in this case, a federal judge gave the green light for the federal prosecutor’s office to issue a public notice to reach members and customers who may have been victimized.

The suspect, currently in federal custody, is 39-year-old Marcus Catalin Rosu, who was charged earlier this year with possession of device-making equipment in connection with an alleged ATM skimming fraud scheme that began in Alaska’s Matanuska Valley in the summer of 2019, court records showed. Nearly a year later, employees of the $644 million Matanuska Valley Federal Credit Union spotted Rosu walking around the area of its ATM and they noticed his bicycle, which later became a key piece of evidence that led to his capture and arrest.

In August 2019, Alaska state troopers were investigating reports of ATM fraud at credit unions, including Matanuska Valley FCU in Palmer about 42 miles north of Anchorage, according to a federal agent’s affidavit that details the investigation.

But it wasn’t until last February when federal investigators got a break in the case.

Postal inspectors intercepted a suspicious package that had been mailed by an individual from Santa Ana, Calif., to another individual living at a hotel in Palmer. The package contained 555 gold magnetic strip cards from more than 70 financial institutions in southern California. Each card had a different financial institution written on the front of the cards and four digits assumed to be the PIN numbers associated to approximately 500 accounts.

Federal investigators then learned of the ATM fraud that occurred at credit unions in the Matanuska Valley and that state troopers had photos of a suspect, but they did not have a positive identification.

In March, federal investigators began contacting the credit unions identified on the fake cards to confirm that the accounts were associated to the credit union and that their members may have been victimized.

According to the investigator’s affidavit, credit unions in southern California identified Matanuska Valley FCU as being one of the Alaskan locations where the fraudulent transactions allegedly occurred. Matanuska Valley FCU’s fraud investigation report showed that its total ATM fraud losses totaled more than $103,000 as of March 4. Investigators then compared the credit union’s losses to the phony cards, identifying $17,089 directly associated to accounts matched to the bogus cards.

Later in March, Rosu was identified as a suspect who was living in Costa Mesa, Calif. His name also popped up on CrimeDex, an online community of financial institutions fraud, loss prevention and law enforcement personnel. CrimeDex revealed that Rosu attempted to place an ATM skimmer at a Navy Federal Credit Union branch in Groton Town, Conn., in October 2019. Although Groton Town police detectives had a video of the ATM skimming incident, a copy of Rosu’s Romanian passport and information about his previous ATM skimming in the United Kingdom, court documents did not show whether charges were brought against Rosu.

Interpol, an international criminal police organization, informed federal investigators that Rosu’s criminal history dated back to 2000 in the United Kingdom and used at least 12 different aliases and eight different dates of birth. In 2010, he was arrested by Australian police for conspiracy to defraud related to card skimming devices. He was sentenced to five years in prison in 2011, and after serving several years, he left Australia in 2014.

Last July, Matanuska Valley FCU’s employees spotted a suspicious person walking around the area and then walking to a bicycle near the credit union’s Willow branch ATM where a skimming device had been installed. Invesigators reviewed photos and security video that matched Rosu’s description and mannerisms but did not show his face because he was wearing a mask. The suspect also used an unidentified device to obscure the ATM’s camera lens.

Police issued a notice on the Alaska Public Safety Information Network to alert law enforcement officials that Rosu was wanted for questioning regarding the ATM incidents.

On July 11, Rosu was being held by police at an Alaskan airport where he wanted to exchange his rental car for another one. When the rental car company declined his request, Rosu caused disturbance and police were called.

When they arrived at the scene, federal investigators saw from the outside of Rosu’s rented vehicle the bicycle he was seen with at the Matanuska Valley FCU’s ATM, according to the investigator’s affidavit. What’s more, when they searched his hotel room, investigators found 1,000 blank gold colored magnetic strip cards, a laptop computer and ATM skimming components, including a magnetic strip card reader and encoder.

Federal prosecutors alleged Rosu used a skimmer to steal the data from cards located in California, and then transported them to Alaska to cash out the funds from financial institutions’ ATMs. Additionally, Rosu skimmed credit cards in Alaska, many of which were issued by financial institutions doing business outside the state, including the $9.5 billion Alaska USA Federal Credit Union in Anchorage.

Rosu has pleaded not guilty to the felony charge and is awaiting a trial by jury that is expected to be scheduled next year unless he decides to cut a plea deal with federal prosecutors.