The leader of a gang of credit card fraudsters who used sophisticated equipment to capture personal information has been jailed for 13 years.
Law enforcement officials say it was the first case of its kind in the capital.
The gang, led by a 28-year-old migrant worker surnamed Bai, forged credit cards and used them to withdraw money via point of sale (POS) machines in the capital.
Bai, who had only a junior school education, was sentenced at the city's No 2 Intermediate Court. The four other members of the gang have not yet been sentenced.
Gao Zhihai, the court's press officer, told METRO on Monday the gang swindled 900,000 yuan from 30 victims using 40 fake credit cards between November 2007 and April 2008.
Gao said Bai got to know the other four members of the gang on the Internet. His accomplices included three people who worked as hotel cashiers in Dongguan, Guangdong province, and another man, surnamed Zhang, who was a company agent who allowed Bai to use workplace resources, including POS machines.
Gao said Bai bought magnetic card data collection devices, smart card devices and blank cards in Guangdong and Beijing between June and July 2007.
He and the three other members of the gang used the equipment to record credit card information when people checked out of the hotels where the three accomplices worked.
The gang usually targeted credit cards without passwords, Gao said.
"As for credit cards with passwords, they would first need to decipher the code before they could get the card information and that was very difficult for them," Gao said.
He explained that the gang then copied the stolen card information onto blank cards using the smart card devices.
Bai worked with Zhang, who provided POS machines so the gang could withdraw money using the fake credit cards.
Gao said the genuine credit card holders complained to their banks about the withdrawals and "up until they clarified what was happening, the customers had many disputes with their banks".
He said the banks investigated and realized the money was being withdrawn on forged credit cards at a limited number of locations. The banks reported the incidents to police. While the gang was the first to be convicted in Beijing of such a sophisticated fraud, experts said the sale of magnetic card data collection devices and smart card devices are becoming more common on the Internet.
According to information posted online, the devices are stand-alone units. When "the credit card is swiped through the device read-tank, the information can be captured and can then be downloaded onto a computer. Each device can store 2,048 pieces of magnetic strip data."
Zi Xiangdong, press officer from the public security bureau, said "these devices are mainly for commercial organizations and they are strictly limited in the market".
"If someone uses the devices to engage in illegal and criminal activities, the judicial departments will take action."
