Multi-State Fraud Scheme Steals $1.1 Million From Credit Unions & Banks
From Florida, the criminals run an online scam targeting credit union members and bank customers in 10 states.
A Michigan federal judge sentenced Cedric Smith to 70 months in prison on Aug. 8 for participating in an online scheme with two other men who stole more than $1.1 million from six credit unions and six banks across the nation.
From April 2019 to April 2020, Smith conspired with Daja Smith and Devonte Hoskins by targeting credit union members’ and bank customers’ online accounts by using their compromised personal information, which the men purchased from computer hackers, prosecutors for the U.S. District Attorney’s office in Grand Rapids said.
Pretending to be security personnel from the financial institutions, the Miami fraudsters called members and customers. To obtain their passwords, they induced victims to share the one-time code the financial institutions send members and customers to reset passwords, according to prosecutors.
The fraudsters communicated with one another using email and social media sites, court documents showed.
Prior to Smith’s sentencing hearing on Aug. 8, U.S. District Judge Paul Maloney ordered Daja Smith to a prison term of five years and Devonte Hoskins received a term of six years.
Judge Maloney also ordered the criminals to pay the following financial institutions their respective amounts in restitution:
The $11.7 billion Bethpage Federal Credit Union in Bethpage, N.Y., $406,261; the $3.8 billion United Federal Credit Union in St. Joseph, Mich., $96,355; the $4 billion Valley Strong Federal Credit Union in Bakersfield, Calif., $43,683; the $2.6 billion Chartway Federal Credit Union in Virginia Beach, Va., $36,400; the $1.6 billion Hiway Credit Union in St. Paul, Minn., $33,412; the $2.5 billion Utah Community Credit union in Provo, $6,285; People’s United Bank in Bridgeport, Conn., $204,751; American Savings Bank in Honolulu, Hawaii, $185,956; First National Bank of Griffin in Griffin, Ga., $84,200; Amarillo National Bank in Amarillo, Texas, $46,970; Southside Bank in Tyler, Texas, $18,803; and the Plumas Bank in Quincy, Calif., $8,595.