Merchant Account Underwriting Tools

Monthly Archives: March 2016


Last week Yair Shoshani pleaded guilty to one count of conspiracy to commit bank fraud after more than ten years of operating a merchant and credit card scheme.jail cell He faces up to five years in federal prison after stealing millions.

Terminology: Synthetic Identity (SI); Pollinator; fraudster.

The true owner (pollinator) of a Social Security Number (SSN) adds “authorized user(s)” to an active credit account. Soon the credit bureaus adopt the credit status of the TO as that of the added user (SI). The added user now has a synthetic identity (SI) and can open credit card and merchant accounts on his own.

Credit Cards are obtained in SI names and phony addresses but tied to the Pollinator’s SSN. “Purchases” cc fraudare made with these cards at fraudulent merchant business that are set up, incorporated and websites registered with SI names. No product or service is involved and money from fraud merchant accounts is transferred into fraud DDA s.

Checks are written or cashier checks bought to deplete these accounts immediately, payable  to ring members or their phony companies and to pay operating expenses such as drop box locations, telephones, pollinators, and websites.Being Anonymous

The card issuer is defrauded since no payment will be made on the card account and the merchant processor is defrauded when money from the fraudulent transactions is quickly moved out of the DDA.

In some cases the money is moved offshore.

Shoshani will forfeit five pricey properties, $4.5 million in cash, and $3.2 million in a Swiss bank account.Frustrated man

Typical ISO and Merchant Criminal Enterprise

The Criminal Enterprise                                      BASE 1 Key Principal(s) Formulate plan. Select accomplices to manage other Bases. Set policies. Create scripts for products being pitched. Establish relationship with collusive ISO. BASE 2 SALES Manage boiler room including separate “upsell” group. Use false d/b/a accounts to process sale and spread volume to hide chargeback percentages. BASE 3Read More