Feds say largest identity-theft ring in U.S. history busted

NEW YORK -- Federal authorities broke up what they called the biggest identity theft case in U.S. history and charged three men Monday with stealing credit information from more than 30,000 people, draining victims' bank accounts and ruining their credit.

U.S. Attorney James Comey said the losses were calculated so far at $2.7 million but would balloon to many more millions and affect consumers in every state. He called the case "every American's worst financial nightmare multiplied tens of thousands of times."

"With a few keystrokes, these men essentially picked the pockets of tens of thousands of Americans and, in the process, took their identities, stole their money and swiped their security," the prosecutor said.

Authorities said the scheme began about three years ago when Philip Cummings, a help-desk worker at Teledata Communications, a Long Island software company, sold an unidentified person passwords and codes for downloading consumer credit reports.

Cummings was allegedly paid roughly $30 for each report, and the information was then passed on to at least 20 other people, who then set out to make money from the stolen information, prosecutors said.

"The potential windfall was probably far greater than the content of a bank vault, and they didn't even need a getaway car. All they needed was a phone and a computer, or so they thought," said FBI Assistant Director Kevin P. Donovan.

Victims have reported losing money from their bank accounts, seeing their credit cards hit with unauthorized charges, and having their identities assumed by strangers.

Comey said there was no reason to suspect a terrorism connection, with simple greed the apparent motive. He said prosecutors were sending letters to the more than 30,000 victims, offering help.