The charged individuals had discovered a loophole in Citibank’s transaction security protocols which allowed them to do multiple withdrawals within 60 seconds.
The individuals opened multiple Citibank checking accounts and deposited seed money into the accounts.
The conspirators then went to nearly 12 casinos in California and Nevada and withdrew the exact amount they had deposited several times within 60 seconds.
The multiple transactions would only show up as one transaction to Citibank.
The arrested individuals also had their hotel rooms paid for at several casinos due to the large amount of money they were spending gambling.
The defendants had kept their deposits and withdrawals under $10,000 in order to avoid federal transaction reporting requirements.
"While advancements in technology have created a world of accessibility to users and a convenience for consumers, they have also left room for criminals to exploit even the smallest of loopholes," said FBI special agent, Daphne Hearn. "For over 100 years the FBI has kept pace with technological and communication changes in the business world where these types of electronic transactions are the standard and we will continue to do so in order to help protect commercial enterprise and our nation’s economy."
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United States Attorney Duffy also assured that her office would be vigilant in preventing cyber criminal attempts to steal funds from individual and companies.
All of the individuals are charged with conspiracy to commit bank fraud and illegally structure financial transactions to avoid reporting requirements.
