Subject: [NEXTEL-1] U.S. Department of Justice- OPeration E-Con

From: [email-masked]
Date: Mon, 19 May 2003 14:27:10 -0400

U.S. Department of Justice Announces Arrests in Internet Fraud Investigations

The Justice Department announced on Friday the arrests of more than 130
individuals and the seizure of more than $17 million in investigations of Internet
fraud and abuse. Called Operation E-Con, the investigative effort is being
coordinated by 43 United States Attorney’s Offices across the U.S., the
Federal Bureau of Investigation, the Federal Trade Commission, the Postal
Inspection Service, Secret Service, and the Bureau of Immigration and
Customs Enforcement along with a number of other state and local law
enforcement agencies both in the United States and a number of countries
around the globe. Online crimes can include multimillion-dollar swindles, online auction
scams, identity theft, business-opportunity frauds, and piracy of software and other
copyrighted material. Since its recent inception, Operation E-Con has conducted more than
90 investigations involving 89,000 victims and estimated losses of more the $176 million.

=========================================================================
Internet Dragnet Goes After Scam Artists
'Dot Cons' Targeted by Ashcroft

By Jonathan Krim
Washington Post Staff Writer
Saturday, May 17, 2003; Page E01

The government yesterday announced a coordinated, nationwide assault on Internet fraud,
cracking down on scams ranging from fraudulent offers of dates with Russian women to fake
bank Web sites.

Dubbed Operation E-Con, the effort includes the FBI, the Justice Department, the Federal
Trade Commission, postal and immigration authorities and state and local law enforcement,
according to Attorney General John D. Ashcroft.

"Internet fraud and other forms of online economic crime are among the fastest-growing
crimes," Ashcroft said at a news conference. "These cyberswindles and 'dot cons' present
new challenges to law enforcement. The Internet enables criminals to cloak themselves in
anonymity, making it imperative that law enforcement act more quickly to stop new schemes
before the perpetrators can disappear into the World Wide Web."

Timothy J. Muris, chairman of the FTC, said that by the end of the year he expects
Internet-related fraud to constitute the majority of complaints received by the agency.

Ashcroft said the operation began in January. Since that time, more than 90 investigations
involving 89,000 potential victims have been launched, leading to the charging or
conviction of 135 people.

"This week alone, federal agents have arrested 50 people and executed 55
search-and-seizure warrants that have resulted in 12 guilty pleas and allowed United
States attorneys to charge 48 individuals by indictment, information or criminal
complaint," he said.

Combating Internet fraud is made more difficult by the variety of crimes that can be
committed. They range from ordinary hacking and virus attacks to sophisticated financial
fraud and identity theft.

Ashcroft cited one Maryland case in which two men are charged with luring unsuspecting
bank customers to fake bank Web sites. When customers submitted financial data, it was
instead used to produce forged credit and ATM cards.

In Illinois, a defendant pleaded guilty to running a fraudulent at-home business scam,
persuading 50,000 people to pay $30 to $45 registration fees for an envelope-stuffing
business. The scheme raised $2 million.

And in California, an investment scam that promised a 120 percent annual return took in
nearly $60 million from 15,000 victims in 60 countries. Two defendants have pleaded guilty
in the case.

http://www.washingtonpost.com/wp-dyn/articles/A1162-2003May16.html

================================================================================

Gov't Cracks Down on Internet Scammers
By David McGuire
washingtonpost.com Staff Writer
Friday, May 16, 2003; 2:48 PM

Federal authorities today said they have arrested 130 online scammers and seized more than
$17 million in assets as part of a continuing assault on Internet crime.

The sweep is part of "Operation E-Con," an ongoing investigation involving 89,000 victims
and losses of more than $176 million. The crimes included multimillion-dollar swindles,
online auction scams, identity theft, business-opportunity frauds, and intellectual
property theft and piracy, the Justice Department said.

"The Internet enables criminals to cloak themselves in anonymity, making it imperative
that law enforcement act more quickly to stop newly emerging schemes before the
perpetrators can disappear in the World Wide Web," said U.S. Attorney General General John
Ashcroft.

This week alone, federal agents made 50 arrests and executed 55 search and seizure
warrants, the department said, charging 48 people with various kinds of Internet crime and
securing 12 guilty pleas.

Other agencies participating in Operation include the Federal Trade Commission, the U.S.
Postal Inspection Service, the U.S.
Secret Service and the Bureau of Immigration and Customs Enforcement.

"We think that by doing it in batches we get more attention and therefore get more
deterrence value for people who might be watching," said Howard Beales, director of the
FTC's Bureau of Consumer Protection. "There's a lot of fraud we can't go after."

The FTC yesterday announced 45 civil and criminal actions against online scammers who
allegedly offered fake credit card accounts, college loans and get-rich-quick schemes.

Online fraud is one of the biggest problems facing the Internet, according to private
research groups and federal authorities. The Internet Fraud Complaint Center (IFCC) -- a
joint project of the FBI and the National White-Collar Crime Center -- reported more than
48,000 Internet fraud complaints in 2002.

In one recent high-profile case, New York authorities on Wednesday announced the arrest of
Buffalo resident Howard Carmack, 36, charging him with sending 825 million fraudulent spam
messages. Known as the Buffalo Spammer, Carmack was released on $20,000 bail after being
the first person to be charged under New York's identity theft law.
Alan Paller, director of research at the Bethesda, Md.-based SANS Institute, an Internet
security training center, said the federal government plays an essential role in stemming
Internet crime.

"Until someone says 'not only are we putting a few in jail, but we've got a big net to
catch people,' the 'I'm not doing anything wrong, why are you hassling me' crowd wins,"
Paller said. "If they know 500 people who've been hacking and they only know three who've
gone to jail, the odds [of getting caught] are so low it's like speeding."

The FTC also said it would work with international law enforcement agencies to close down
"open relays" -- unsecured e-mail servers that spammers use to conceal their identities, a
deception that often prevents computer users from removing themselves from spammers'
lists.

Mail Abuse Prevention System (MAPS) Director of Operations Margie Arbon said that more
than half of the spam she tracks comes from unsecured computers.
http://www.washingtonpost.com/wp-dyn/articles/A60804-2003May15.html

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