T.A.S. Auto Parts Helps FBI Catch Cyber Crook

Tip From Honda Accord Specialists Leads to Indictment of Credit Card `Phisher'

STAFFORD SPRINGS, Conn., Dec. 14 -- T.A.S. Auto Parts, an Internet retailer specializing in parts and accessories for 94-02 Honda Accords, recently provided the lead needed by federal authorities to apprehend and indict a Texas man who stole 473 credit card numbers and $47,000.00 from victims nationwide. The arrest of Zachary Keith Hill in Houston, Texas, made national news in the October 4th issue of Forbes Magazine, whose "CyberCon" cover story describes a growing Internet crime called "phishing."

"Phishing" occurs when someone sends a bogus email to customers of large companies, such as Citibank or PayPal. The email is designed to trick recipients into clicking a link to a phony website that appears legitimate. Once people arrive at the website, they are prompted to enter their credit card or bank account number. The information is then sent via email to the "phisher," who uses the data to place fraudulent Internet orders.

T.A.S. Auto Parts received a series of fraudulent orders from Zachary Keith Hill through http://www.tasauto.com/ in 2002. Rosanne Sycz, a T.A.S. sales associate, recognized a shipping address matching the same Houston address of three other accounts that were frozen due to stolen credit card use. "When Rosanne brought these orders to our attention, we knew we were dealing with someone much smarter than the average thief," said Matthew Hartzog, VP of T.A.S., who has investigated fraudulent orders for more than ten years. "Most credit card thieves give up after their first attempt, but this person's persistence was unusually brazen."

Mr. Hartzog filed a complaint with the Federal Trade Commission in 2003. Shortly thereafter, he was contacted by Eric Wenger, former FTC attorney. Wenger's call was quickly followed by a call from John Ohashi, a special agent for the FBI who had been investigating Zachary Keith Hill and other "phishers" for over a year. Luckily, the FTC received Hartzog's complaint just as Hill was about to place another fraudulent order.

A plan was devised to trick Hill into thinking that his order was being processed so federal authorities could catch him in the act of committing fraud. T.A.S. shipped Hill a box of carpet scraps instead of the Accord trunk mat he ordered. When Hill emailed T.A.S. to check on the status of his order, T.A.S. replied with the UPS tracking number and delivery date. FBI agents watched UPS deliver the package to Hill then approached him for questioning. Agents later returned with a search warrant and confiscated Hill's computer for evidence. He later pleaded guilty to federal fraud charges and is now serving a 46-month sentence.

Since credit card fraud costs merchants and cardholders billions of dollars, Hartzog hopes that this incident will demonstrate the need for reforms by credit card issuers to help diminish the damages caused by "phishing."