Two Alabama credit unions' ATMs were emptied of almost $2 million in a bank fraud conspiracy from February to June of this year.
Surveillance camera footage captured weeks before the unauthorized withdrawals showed a group of fraudsters installing card skimming devices and covert cameras that capture depositors' banking information on drive-through ATMs of two credit unions, Muscle Shoals-based Listerhill and Birmingham-based Avadian, according to FBI agent Ryan J. Widham in an affidavit. Members of the group were later caught on camera withdrawing money from those ATMs.
The group was indicted on charges of bank fraud conspiracy and aggravated identity theft last Wednesday.
In press releases following the incident, the credit unions said they would not comment on "ongoing investigations," but offered several tips to prevent falling victim to fraud.
"Fraud and scams of many types are on the rise, and we encourage everyone to take every possible measure to protect their identity and their financial information," said the release from Avadian.
According to FICO data, the number of cards in the U.S. compromised by skimming increased more than fivefold from 2021 to 2022. And this trend is just getting started with FICO projecting a tenfold jump from 2022 to 2023 based on the data collected this January.
"One reason we are seeing an increase [in skimming] is related to the adage about criminals opting for a path of least resistance," Debbie Cobb, senior director of product management for FICO, told
On June 18, the ATM thieves — Ionut Iamandita, Milena Iamandita, Elana Matei, Florin Matei and Larisa Iordache — drove up to several Avadian Credit Union ATMs and made unauthorized withdrawals. Surveillance cameras showed the masked group through their car window withdrawing cash.
After withdrawals in Birmingham, agents observed Ionut and Milena Iamandita heading south to other Avadian branches in Hoover and then Pelham. Elana Matei, Florin Matei and Larisa Iordache followed behind.
The groups were stopped and arrested by the police. Upon arrest, police found a pouch of bank cards and "significant amounts" of U.S. currency on Milena Iamandita's person, according to the affidavit. Over $93,000 was recovered from Larisa Iordache.
The group's indictment included another instance earlier this year.
On March 25, Listerhill Credit Union alerted the FBI that hundreds of customers had unauthorized drive-through ATM withdrawals totaling $1.7 million. The fraudsters were identified as Ionut and Milena Iamandita.
Listerhill surveillance showed that the fraudsters had outfitted their ATMs with illicit data-capture devices months before, in February, March and May.
In their statements, the credit unions pointed out ways that customers can remain vigilant against fraud, such as inspecting card readers, verifying the identity of a teller and refraining from sharing any personal information.
Capital One has noted that a card skimmer
Following the fraud case, Listerhill updated its website to warn against scams and require the use of physical debit cards at smart ATMs. A pop up on the website said: "Chip cards are encrypted and are constantly being updated, making it much harder for criminals to copy the card or hack member information."
