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EOW cracks Rs2 crore cyber fraud, one held

Saturday, 16 August 2014 - 6:40am IST | Agency: dna

Gang fleeces advertising company through illegal purchase of electronic goods

The Economic Offences Wing (EOW) of city police on Thursday arrested a man for allegedly duping an advertising company of Rs2 crore. The arrested person, Faisal Fazlur Rehman Chaudhary, 31, works as an Internet Merchandise Executive in the company. Chaudhary was part of a gang that had illegally purchased electronic products from the website of the company through credit card data of 239 customers.

What does the company do?
According to the police, the complainant is the legal manager of a leading advertisement television channel with its office at Grant Road. The company, through its website, sells goods and advertises for the same on their channel. On the said website, other sellers too advertise their products for sale.

How does a transaction take place?
When buyers purchase products online, they make payments through either credit card or debit card or net-banking and the money is deposited in a nodal bank account of the company. Onus of delivering the sold product to the buyer is on the seller. The seller either delivers the product to the buyer through a courier or in person and takes signature of the customer on a Proof of Delivery (POD) receipt. The seller then uploads the said receipt on the company's website.

Once the copy of receipt is found on the website, the complainant's company transfers the money from their bank account to the seller's account.

What is chargeback?
For the online transaction of the complainant's company, another company is a payment gateway. On April 10 and 24 and May 13 and 21, the complainant's company received emails through a payment gateway company, informing them about chargeback, Chargeback means that if a credit card holder complains regarding any purchase, then at that time the purchase made through his card is termed illegal and the money transferred from his account is refunded.

The payment gateway company in their emails had informed that purchases of products through the complainant's company's website have been made by illegally using customer data of international credit cards of a foreign company.

How was the fraud committed?
The complainant's company then hired a consultancy company to compile and furnish them details regarding the fraud. The consultancy firm then informed the complainant's company that between December 2013 and April 2014, 40 customers' customer IDs from Kolkata have been registered on the website of the complainant's company on different names.

Customer IDs registered on the website were used to purchase mobile phones, laptops and household appliances from the website through the illegal data sought from international credit cards of a foreign company.

Illegally purchased products were then delivered at different addresses in Kolkata and a police complaint was registered on July 19 in this regard once the crime surfaced. The case was then handed over to the EOW for further probe.

Credit card data of 239 bank customers used

"Investigation revealed that customer IDs were used by two Kolkata based persons who are now wanted in our case. The have been identified as Saurav Shah and Mohammad Ayan. It was also learnt that Chaudhary was in touch with them. We are questioning Chaudhary to ascertain how the data of customers were procured by the wanted accused," said an EOW officer, requesting anonymity.

The officer added that for online shopping, stolen credit card data of 239 customers of the bank and 178 different IP addresses were used.

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