Student arrested for Internet bank fraud

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.