ATM Scheme Targeting CUs in Six States Nets Fraudsters Nearly $6M

Alabama federal prosecutors said six people targeted credit unions in six states, stealing nearly $6 million in fraudulent ATM withdrawals over 20 months.

Three persons have all pleaded guilty to a bank fraud conspiracy charge and three others pleaded guilty to bank fraud conspiracy and identity theft charges, according to a Dec. 14 statement from U.S. Attorney Prim F. Escalona for the Northern District of Alabama in Huntsville.

From October 2022 to June 2023, the group of six admitted to placing covert video cameras and skimming devices on the targeted credit unions’ ATMs to record members’ PIN numbers. The fraudsters encoded that information on magnetic stripe cards or EMV chip cards, and placed a sticker on the card with the PIN number and card verification number.

After accumulating a substantial amount of card numbers and PINs, typically over several weeks, the conspirators traveled to the credit unions to make the unauthorized withdrawals.

The fraudsters stole a total of $5,854,590, according to court documents.

The credit unions and stolen amounts of members’ funds included: The $1.3 billion Listerhill Credit Union of Muscle Shoals, Ala. ($1,756,991); the $1.3 billion Avadian Credit Union of Hoover, Ala. ($326,210); the $5.7 billion Citadel Federal Credit Union of Exton, Pa. ($938,887); the $1 billion Neighborhood Credit Union in Dallas, Texas ($900,000); the $738 million Team One Credit Union in Saginaw, Mich. ($625,612); the $13.4 billion VyStar Credit Union of Jacksonville, Fla. ($434,420); and the $1.1 billion Sunmark Federal Credit Union of Latham, N.Y. ($384,470).

Court documents also showed that the fraudsters hit First Federal Credit Union in Harrisburg, Pa. ($238,000), and Teachers Credit Union in Dallas, Texas ($250,000). However, there are no such credit unions listed as being active or inactive by the NCUA in Harrisburg or Dallas. The U.S. Attorney’s office for the Northern District of Alabama did not respond to CU Times’ email and phone requests for clarification.

The convicted conspirators, who are awaiting sentencing, included: Maria Matei, 22, and Larisa Iordache, 28, who both pleaded guilty last week to conspiracy to commit bank fraud; Marius Iordache, 29, who pleaded guilty to conspiring to commit bank fraud last month; Ionut Iamandita, 28, Milena Iamandita, 25, and Florin Matei, 27, who each pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft in October, court documents showed.

After the Listerhill ATM theft, FBI agents obtained search warrants in June for prospective location data from cell phones that belonged to Milena and Ionut Iamandita. Investigators tracked the location data that showed the cell phones were located at an Avadian branch in Birmingham. FBI agents also observed four of the fraudsters were driving in a minivan and another suspect was driving in a car. Both vehicles traveled to other Avadian branches. Cell phone data also revealed the suspects were staying at a hotel in Vestavia Hills, Ala.

After they were arrested, investigators recovered nearly $180,000 in cash, according to court documents.