An ID theft ring was arrested by the FBI for using stolen credit cards to purchase their own music recordings they uploaded to iTunes and Amazon. And? Quite a few Hollywood stars do this as well, sans the stolen credit cards, to inflate their sales. However, it does constitute fraud and chart rigging.
The ID theft ring collected $300,000 in this manner, in royalty checks from duped iTunes, who collaborated with the Feds on this case.
Criminal gang bought own music on iTunes and Amazon using stolen cards
The gang are alleged to have created several songs that they provided to an online American company, which uploaded them to be sold on the two internet sites.
It is believed that over four months from September last year the gang used 1,500 stolen or cloned British and American credit cards to buy songs worth $750,000 (£469,000).
Amazon and iTunes, which were unaware of the fraud, paid $300,000 in royalties. Six men and three women were arrested yesterday by 60 officers at addresses in London, Birmingham, Wolverhampton and Kent. A man in his forties, was arrested later.
They are all being held in custody on suspicion of conspiracy to commit fraud and money laundering.
A police source said: “We will not know why they did what they did until we have conducted all the interviews.” It is believed that one of the gang is a DJ and that he created the songs that were then bought...
Apple refused to comment on the story but it is believed that there is no standard fee for royalties and each deal is negotiated separately. The gang is said to have made 40 per cent from the royalties.
