Police Break Computer Fraud Ring

San Diego police say they have cracked a nationwide electronic network of young computer hackers who were able to make fraudulent credit card purchases and break into confidential credit rating files.

“These kids can get any information they want on you--period,” San Diego police Detective Dennis Sadler said. “We didn’t believe it until it was demonstrated to us.”

The investigation has led to two arrests in Ohio and seizures of computers and related material in New York City, the Philadelphia area and Seattle, Sadler said. But those cases are just an offshoot of the main investigation, he said.

He refused to discuss details, saying an investigation is continuing and that scores of arrests are pending nationwide.

Members of the informal underground network know how to break computer security codes, make charges on other people’s cards and create credit card accounts, Sadler said.

As many as 1,000 hackers nationwide have shared such information for at least four years. Sadler estimated that illegal credit card charges could total millions of dollars.

Fraudulent credit card charges typically are made by computer criminals who illegally gather detailed information from computerized accounts on file at credit reporting agencies, banks and other businesses.

The hackers also have learned how to break personal security codes for automatic teller machines, Sadler said, and can obtain telephone access codes to make long-distance calls without paying.