Credit-card-fraud scheme broken up on Seattle's Capitol Hill

Late last week, Seattle police passed along information to federal agents that pointed to a high-tech credit-card-fraud scheme on Capitol Hill.

Members of the Secret Service's Seattle Electronic Crimes Task Force, who have advanced training in computer forensics, were sent to the neighborhood and "were immediately able to put a stop to the fraud," Bob Kierstead, assistant special agent in charge of the service's Seattle field office, said Friday.

Concerned about compromising the ongoing investigation, Kierstead declined to say how many people were affected or how much money was stolen through the fraudulent use of credit- and debit-card information.

Task-force members, however, have figured out how the fraud was committed and have a good idea who may be responsible, Kierstead said.

Credit- and debit-card thieves stay on top of their game, he said.

"Even the most up-to-date, high-tech IT security system will at least be probed, if not attacked," Kierstead said. "There's always a way for a criminal to find a way in."

In the Capitol Hill case, investigators think someone outside Washington — and possibly outside the country — used some kind of software or external device to capture credit- and debit-card information when customers used plastic currency to pay for services at least two businesses, Kierstead said.

The theft of information lasted for months, possibly longer, and investigators are working on the theory the information was fenced to other people who began making more fraudulent purchases, he said.

"It's kind of an insidious thing — they got the information but did not necessarily immediately use it," Kierstead said.

Although investigators haven't identified suspects, they're optimistic they will, he said.

Kierstead encouraged consumers who have frequented Capitol Hill businesses and restaurants to remain hypervigilant in reviewing their bank and credit-card statements.

Anyone who discovers a fraudulent charge should call the Seattle Police Department's nonemergency line at 206-684-5011 and file a police report, he said.

As long as a report is made in a timely fashion, Kierstead said the bank or credit-card company that issued the compromised card will absorb the loss.

Sara Jean Green: 206-515-5654 or sgreen@seattletimes.com