Man arrested for possession of ATM skimming devices indicted

A federal grand jury has indicted Xiaolin Yang, a man who was arrested by Federal Bureau of Investigation special agents for allegedly concealing in his luggage ATM skimming devices.

The indictment charged Yang in federal court with one count of conspiracy to traffic or possess device-making equipment.

The indictment said the ATM skimming device includes a device fastened over the top of the factory installed card reader on an ATM machine, which together with a small hidden camera, is used to illegally capture account information contained on the magnetic stripe on the back of an ATM or debit card as well as a customer’s inputted personal identification number (PIN).

The captured account information is later transferred onto a counterfeit or fictitious ATM or debit card, and the captured PIN is used to make unauthorized withdrawals from the legitimate customer’s account.

The indictment, which was filed Thursday in the U.S. District Court for the NMI, also contains notice of forfeiture.

If Yang is convicted, the notice said, the U.S. government will seek forfeiture of the property used or intended to be used by the defendant to commit the offense.

The property, which was seized from Yang, include two card readers, four pinhole cameras and attached hardware, one iPhone 6, one Lenovo laptop computer, one Toshiba external hard drive, four 3.7 volt battery packs, $1,000 cash, and 1,209 Chinese RMB.

According to the indictment, beginning on April 21, 2016 and continuing through April 28, 2016, Yang intentionally conspired and agreed with persons to possess device-making equipment—two ATM skimming devices and four pinhole cameras.

Yang allegedly engaged in conduct in furtherance of the conspiracy in transporting such device-making equipment from the People’s Republic of China to the island of Saipan on April 28, 2016.

FBI special agents arrested Yang last April 29 shortly after U.S. District Court for the NMI Magistrate Judge Heather L. Kennedy issued an arrest warrant upon the U.S. government’s filing of a complaint charging him with illegal possession of device-making equipment.

According to FBI special agent Haejun Park’s affidavit, Yang arrived on Saipan onboard Asiana Airlines Flight No. 625 from Hong Kong via Incheon Korea last April 28.

Park said during immigration processing by U.S. Customs and Border Protection, Yang acted suspiciously so he was required to undergo additional screening.

Park said during this additional screening, ATM skimming devices were found inside Yang’s luggage.

Park leads the FBI’s investigation into the skimming devices that were discovered earlier last April on two ATM machines at First Hawaiian Bank in Oleai.