Many news outlets are reporting the following story. At first I ignored it as just another small time crime but it actually reflects a much larger fraud issue –credit card fraudsters are beginning to either buy out or just become a merchant.

The owner of a small computer shop in Mangga Dua shopping mall, Central Jakarta, was able to get through the electronic defense system of one of the city's major banks, police said Monday.

The man, identified only as TL, entered fictitious credit card transactions into the system of the city's second largest bank in terms of assets, Bank Central Asia (BCA).

The suspect did not use any sophisticated technology.

He just used seven cards to authorize 12 transactions totaling Rp 425 million (US$47,222).

Now, $50k may seem like small potatoes to multimillion dollar fraud seen these days, but it's a wide spread way to fly under the radar of law enforcement. Frauders will either find a merchant who has been in business a while (or create their own merchant store) in order to put through one time transactions totaling a large amount. These weekend transactions may range from $50k – $400k, but they can evade the banking fraud systems if their transaction volume is in line with other purchases made.

Here the attackers are blending into and buying off the very systems assumed to be part of the system.

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