“Operation Cash Flow” Nets NJ Suspects

The reason an estimated several hundred New Jersey restaurant-goers got a little more than they bargained for on their credit card statements has come to light, The Star-Ledger reports. Apparently, consumers got wrapped up in a scam that involved financially struggling restaurants in Essex, Morris and Passaic counties. 

Facing tough economic times, the restaurants approached a number of individuals for the sake of securing high-interest, unsecured loans, according to an Essex County prosecutor quoted by newjerseynewsroom.com. (Seven of these individuals have been named in charges thus far, while other arrests are still expected, the site reports.) Unable to pay back their debt, restaurants were allegedly offered a alternative means of recompense—one that involved the restaurants handing over customer credit card numbers.

U.S. Secret Service and authorities in Essex and Bergen counties have been investigating the situation for four months, according to media accounts of what law enforcement has dubbed “Operation Cash Flow.” Flow the cash did—victims were swindled out of $1 million annually, according to media accounts.

Sounds familiar…

It’s not the first we’ve heard of restaurant customers’ credit card numbers being put to illicit use. In September, the ringleader of a group that stole more than $700,000 from D.C.-area restaurant-goers was sentenced to seven years in prison. That man, 38-year-old Erick V. Burton, “conspired to recruit and pay servers at Clyde's, M&S Grill, and 701 Restaurant to ‘skim’ the credit card numbers of paying customers,” according to the Washington Examiner. A skimmer is a machine that swipes and stores electronic credit card information. The paper reports that the servers were paid $20 for every number they collected.

A little advice

What can you do to prevent your own card from being “skimmed?” Obviously, when you hand your credit card to someone else, you’re automatically imparting some level of trust. Try to keep your eye on it once it leaves your hand—whether you’re out at restaurants or anywhere else. And always monitor your credit card statements closely. If something is amiss, report it to your financial institution immediately.