In 2006, two customers at a State College bar used their credit cards -- only later learning they had become the victims of an identity theft scheme.
A federal indictment filed June 26 names two State College men and one Philadelphia man in a credit card fraud scheme that took place at the Cell Block, 420 E. College Ave., and in a Philadelphia restaurant beginning in November 2006.
Court documents allege Michael P. Alexander and Marshall Scott Bratton, both of State College, used electronic handheld card readers, or "skimming" devices, to record information from the magnetic stripe on the credit cards of two Cell Block patrons. The documents state Shayne S. Boseman, of Philadelphia, used the same method to steal credit information from six customers at LaCroix Restaurant in Philadelphia.
The three men are charged with conspiracy bank fraud and access device fraud.
The indictment alleges the two State College men made duplicate credit cards with "identical electromagnetic information" to the victims' cards, then used the fraudulent cards to make a number of purchases. The three defendants used the credit information to buy television sets, game systems, building materials, appliances, furniture, fixtures, jewelry and gasoline, according to court documents.
Some of the purchases, the indictment states, were made at two State College stores -- Wal-Mart and Best Buy.
The indictment also alleges the men recruited and enlisted employees at "certain businesses" to allow them to make counterfeit purchases in exchange for illicit drugs or money.
The two Cell Block fraud victims, named in court documents as Christie D. Scott and Amos King, were unable to be reached. Neither is listed as Penn State students in the Penn State Directory.
Cell Block General Manager Doug Nixon said he only recently became aware of the alleged fraud. Though he said he didn't know the details of the incident, he confirmed Bratton worked for a subcontracting cleaning company hired by Cell Block to clean the premises.
Upon discovering Bratton's involvement in the fraud, Nixon said Cell Block terminated its contract with the company.
Cell Block has systems in place to prevent fraud, such as printing incomplete credit card numbers on receipts and making sure all employees are uniformed, Nixon said. Cell Block employees are also subject to background checks, although the bar does not have the same standards for subcontracted employees such as Bratton, he said.
"We're definitely going to keep an eye on it," he said. "It's just unfortunate our bar was part of it."
Spokesman for the Pennsylvania Attorney General's office Eric Shirk said he was unaware how common this type of fraud is but was not surprised it was happening.
In May, two Penn State students faced various charges after police said they found another student's wallet in a locker in the Intramural Building and attempted to use his credit card to purchase an Xbox 360 at Wal-Mart, 1665 N. Atherton St.
According to the most recent data from the Federal Trade Commission published in 2006, credit card fraud makes up 31 percent of all identity theft in Pennsylvania and 25 percent nationwide.
"This is just another way that people are getting a hold of other people's information," Shirk said. "With technology, different means are coming out all the time. You always have to be on your toes."
