Student arrested for Internet bank fraud

Apriadi Gunawan, The Jakarta Post, Medan

North Sumatra Police said on Wednesday they had arrested a student in Medan for hacking into bank websites and bank accounts belonging to foreigners and stealing their money through the Internet.

Deputy Police chief of detectives Adj. Sr. Comr. Iwan Hari Sugiharto said the private university student, identified only by his initials as KS, was nabbed on Tuesday night at his home on Jl. Jamin Ginting.

The police confiscated a violin worth US$500 and a Nokia 6600 cellular phone allegedly purchased with the stolen money, as well as tax receipts with the addresses of victims.

Iwan said the arrest was made following a report by an Australian victim filed with Interpol, which was later forwarded to the National Police Headquarters in Jakarta.

The National Police then ordered North Sumatra officers to arrest KS, Iwan added.

He said the suspect bought the violin after gaining access to the Australian's bank account, adding that the violin was dispatched from Australia to Medan through UPS courier service.

"Luckily, he hadn't picked up the item because the Rp 1.25 million tax imposed on it was too high. But, the buyer's name and address were on the receipt. After tracing the address, we then arrested KS," Iwan told The Jakarta Post.

He said the suspect was now being held at the North Sumatra Police Headquarters for further investigations to determine if he was working with a bank account fraud syndicate.

The suspect admitted to having broken into bank accounts of foreigners five times. From data he obtained, he was able to purchase luxury items overseas by using other people's credit cards. The items would then be sent through courier services, and later sold at lower prices.

Among the goods KS bought overseas were a Nokia 6600 cellular phone, a digital camera and a laptop computer. All were valued at more than Rp 70 million (US$7,777).

KS confessed to having started accessing and withdrawing money from the bank accounts since January and said he often used the services of Internet cafes and kiosks near his house in Medan.

The use of Internet shop services in bank account fraud cases pose difficulties for police in tracking down the perpetrators.

He said that one of the shops identified as a frequent site for credit card fraud through the Internet was located in the area of Jl. Jamin Ginting, near the North Sumatra University campus intersection.

An Internet service shop proprietor, Hamsal, confirmed that kiosks around Jl. Jamin Ginting were often used by hackers or credit card data thieves to gain access to other people's account numbers.

He said that two years ago, he fired one of his employees, who was a student, for trying to commit a similar crime.

"Most of those who do this here are students. They usually do it at night, at around 10 p.m. or later," said Hamsal.

There are four such kiosks in the area that have often been used for similar crimes, he added.