$50,000 Payments Fraud Detected

A Californian man has been charged with committing four counts of computer fraud, wire fraud and mail fraud after posing as cartoon characters to obtain $50,000 from two online brokers.

Michael Largent wrote a computer script which opened 58,000 online brokerage accounts with false names, addresses and social security numbers.  He opened some accounts using names from the cartoon series King of the Hill and others using Johnny Blaze, which fans of Marvel’s Ghost Rider may recognise from the comics and film.

Once the accounts were opened, Largent was able to use the broker's verification systems as a means of deceptively gaining money. When a customer opens a new brokerage account, the broker usually makes a 'micro-payment' to verify the account is live. The amounts are usually no more than 2 dollars, but because Largent has over 58,000 accounts he was able to accumulate $50,000 in total.

Largent was caught because of the USA Patriot Act; similar to the Anti Money Laundering regulations in force in the UK. Once the bogus accounts were identified they were found to be linked to 5 IP Addresses, all which could be traced to Michael Largent’s broadband account.

Largent is currently on bail, due to return to court on 19^th June. To find out more about address verification, document checking or IP verification as part of money laundering compliance regulations please click on the links, or contact us for a demonstration.