University Of South Dakota Athletes Ran Tax-Fraud Scheme, Made $400,000

SIOUX FALLS, S.D. (AP) — He wore a hoodie and a stocking cap as he made multiple trips to an ATM on a warm day in April 2012, cutting a suspicious enough figure that a concerned citizen tipped off police in the college town. Using surveillance video, they discovered a cornerback for the University of South Dakota’s football team was using a preloaded debit card that had been issued for a tax refund.

The card, however, did not belong to Alphonso “Rico” Valdez. A scheme to defraud the IRS of $1.1 million began to unravel. After a months-long investigation, authorities busted up the fraud ring, which netted about $400,000 over nearly a year.

Continue reading at Huffington Post.

Advertisements

U.S. Credit Cards Tackle Fraud With Embedded Chips, But No PINs

This year, there will be an important change in the way Americans use their credit cards. More banks will be issuing cards with small computer chips, a move they say will protect against credit card fraud.

But banks are stopping short of another step that will make credit card usage even safer. And a lot of retailers aren’t too happy about it.

Americans use their credit cards a lot, and most of the cards they use operate the same way. The credit card is swiped through a machine, and the machine reads the customer’s personal information, which is stored in a magnetic strip on the back.

Continue reading at NPR.