Merchant Account Underwriting Tools

Monthly Archives: October 2017



We’re missing out on some big paydays! It’s as easy as One, Two, Three.





BASE 1       two guys - briefcase

  1. Key Principal(s): Allegedly Jimmie the Beak says, if not in so many words, to Richie da Witch, Jimmy Two Tone, Petey Oboe, and Big Tony: “Let’s willfully and knowingly devise a scheme and artifice to defraud, and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises.”                           

Jimmy the Beak

Jimmie the beakrichie da witch





Richie da Witch   


jimmy two tone








Jimmy Two Tone  





Petey OboePetey Oboe     

big tony



 Big Tony



  1. Formulate Plan:     “And here’s the plan.the plan

We create and operate websites that we can use to place millions of dollars of unauthorized and recurring charges on credit card accounts belonging to at least tens of thousands of victims. We don’t even have to ship the stupid consumers any product and can continue billing their accounts once we’ve got the card numbers.”

  1. Select Accomplices to Manage Other Bases. “And to do this I’ll need Richie da Witch, Jimmy Two Tone, Petey Oboe and Big Tony to help out with the management.”
  2. Set Policies: “We can knowingly transfer, possess, and use, without lawful authority, a means of identification of another person. i.e. names and credit card numbers which we can buy in bulk on the black market and also by capturing the credit card numbers of individuals who seek to make legitimate purchases through our websites.” Jimmy Two Tone tells Jimmie the Beak and Big Tony that he’s got 3500 card accounts that are “ready to go.” “I can get another 1000 records for a dollar each and they should average $500 per card for us.” ”Nice” replies Jimmy Two Tone.
  3. Create Scripts for Products Being Pitched: “We can use scripts on the various websites that market similar products and/or services, oftentimes dietary supplements and ‘nutraceuticals’ (products that purport to contain health-giving additives or medicinal benefit) or web hosting services. Likewise, we can use identical stock photos on our various websites, and the same coding.”
  4. Establish Relationship with a Collusive ISO: “I’ve got just the guy who can run these fraudulent transactions through the system” says Jimmie the Beak. “He’s done this for years, just changing his names and addresses.” The dumb acquirers never spot him.”

BASE 2    lead salesman
LEAD GENERATORS: “We can internally sell leads to Base 1 and 3 (ourselves) developed from previous victims or purchased from lead vendors.   These leads are worth every bit of the paper they’re smeared on!” We’ll obtain credit card numbers in bulk by buying them on the black market and by capturing the credit card numbers of individuals who sought to make legitimate purchases through the Websites.”

BASE 3 boiler room salesman     

Sales: Jimmie the Beak says, “We can manage boiler rooms, including separate ‘upsell’ groups. We’ll use false d/b/a accounts set up by Base 7 to process sales and spread volume to hide chargeback  percentages so that the Processor’s risk people don’t spot us for a while. “We’ll get rich targeting those elderly, vulnerable consumers! “ 

BASE 4  vendor
Vendors: “They’ll provide (or not even provide) worthless ‘products or services that are pitched to unwitting consumers via Base 3. “There are limitless vendors selling crap products and we can bump the prices up as high as we can get em.”  Big Tony: “Are we shipping these guys actual nutra products?”  Jimmie the Beak: “Nope. I think it’s best if we ship items to each person even if its just a blank letter so we have tracking,” and to make the transactions appear legitimate in the event of any inquiries from the payment processor .

BASE 5  money bags man
Controller: “We can route proceeds via wire transfers to bank accounts managed and controlled by Jimmie the Beak and Richie da Witch. We can also track transactions of Base 3 and disburse funds to other Bases as directed by Base 1, which is, of course, us.”

BASE 6   sleazy guy with briefcase

Incorporator: “We’ll need to Incorporate numerous shell companies to process transactions, maybe a couple hundred” and coordinate with Base 1, 2 and 5.  All we need is some phony names and mail box addresses. It’s a cinch”

BASE 7  account opener
Merchant Accounts Openers: “We’ll use straw men as principals and to oversee the accounts.  I know plenty of shady characters we can recruit. Some are even family. They’ll coordinate with Bases 1, 3, 5 and 6. They will present doctored bank statements that dramatically overstate the account balance in the bank account of the fraud merchant in an effort to make the company appear more creditworthy and persuade the acquirer to process payments


BASE 8     processor
Here’s the guy I’ve been telling you about “says Jimmie the Beak. “He’ll open all the accounts we can fabricate. Not only that, but he will help select straw men as principals and will balance account volume to spread chargebacks. He’ll work closely with Bases 1, 3, and 5.


Base 9  acquirer

ACQUIRER: “Our ISO guy has several banks he can use that board sketchy merchants. The underwriters won’t like it but the bean counters will love it.”



seniors defrauded“And as for those consumers!  They’ll be scratching their heads trying to figure out what happened to their part of the $28 million while we’re kickin back in the islands.”


 Or, as it may be, in prison.jail cell

*The foregoing are allegations and all persons are presumed innocent unless convicted in a court of law. Conversations are reported in substance and in part, and came from the federal complaint.  They may vary in attribution as to the speakers and precise wording.