New Tool For Terrorists - Prepaid Gift Cards
October 5, 2007
Terrorists are always looking for new ways to move money around and
finance their attacks and apparently they've found one. Organizations
and individuals involved in terror cells are now buying prepaid
merchandise cards and using cell phones and the Internet to buy items
and transfer money. Prepaid cards are the type of instrument you can
obtain anonymously and as a result, a hot commodity for terrorists.
Law enforcement officials say these newer cards, many of which can be
reloaded online or at checkout counters, are an ideal tool for
credit-card thieves, drug rings, and even terrorist cells. "It is a
great concern to DEA and the FBI because of the terrorist financing
angle," says Don Semesky, chief of the office of financial operations at
the Drug Enforcement Administration.
Law enforcement officials have not yet prosecuted many cases involving
prepaid cards, but they see the impact already.
Interesting comments from the articles
In one case this year, a Mexican criminal caught at the border
used stolen credit cards to transfer funds onto prepaid cards.
Prepaid cards have grown rapidly into a $63.4 billion business!
That bank/nonbank link is the key to the problem, since the
cards have ATM privileges but are not linked to personal bank
accounts, which are closely monitored. "It's a very easy way to
launder money," says Larry D. Johnson, head of the Secret Service's
criminal investigative unit.
An internal U.S. Treasury report notes that the Sept. 11
hijackers were later identified by their bank accounts, card
signatures, and wire transfers. "Had the terrorists used prepaid
cards to cover their expenses, none of these financial footprints
would have been available," the report said. A chilling thought.
(Link to the National Terror Alert Below)
http://www.nationalterroralert.com/updates/2007/10/05/new-tool-for-terro
rists-prepaid-gift-cards/
(MSN.com story below)
