Massive credit card fraud via various illegal MP3 download sites - update

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28 Mar, 2006

It seems that going for the cheapest illegal way is not always the smartest thing to do. Over the past few weeks Side-Line has been inundated by e-mails from readers from all over the world including the USA, UK, Belgium, France, Holland etc telling they have been the victim of fraudulous use of their credit cards after having entered their credit card to buy illegal download albums for just one dollar, the so-called 'MP3-1dollardeals', from illegal MP3 websites. These sites, mostly based in Russia, are acting online as being from the UK, USA, Germany etc under over 40 domainnames (including the popular MP3sugar, Audio Store, Allofmp3, ...). It appears that they have now started picking victims amongst their clients (believed to be several millions) at random to use their cards for other means. As the Russian authorities are not active in fighting piracy it is to be believed that these sites will continue exercising their business. Several label owners have in the meantime confirmed to Side-Line that those sites are 100% illegal and stealing music from the smallest indie band to the biggest major act. Through MP3 websites such as MP3sugar and Audio Store the Albanian and Russian mob have found another quick mean to get rich apart from selling drugs and prosituting youngsters. Rumour has it that a blacklist is circulating among the CC companies holding domainnames from illegal sites where customers will not be covered in case of fraud. The sums taken from the cards go from just a 'lousy' 1000 US$ to over 3000 US$. So far the 'MP3-1dollardeals'. If you have been purchasing illegal downloads, be sure blocking your card right now, your credit card company will most probably NOT cover the costs after fraud as the news about the abuse is spreading quickly now. Meanwhile, a Russian site has been offering stolen eBay and PayPal customer account information for between $5 and $25 per item so P2Pnet informs. The full story can be read at http://p2pnet.net/story/8343 .

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Posted by: yluko on Apr 04, 06 | 12:38 am

So should we just steal from the R and B artists cause they make allot of money at it. Like set a standard if you sell a million albums after that its okay to steal your stuff. Artists are suffering greatly look around at most of the artist on here to see that. You read about mabye 10 big and rich artists look at the thousands and thousands of others trying to afford rent.

I don't even know why I am bothering to respond....

Some of you are just too clueless and will say anything to justify stealing...

Posted by: mp3sugar on Mar 31, 06 | 3:25 pm

Dear Sirs,

This is to inform you that your article of March 28, 2006,
entitled "Massive credit card fraud via various illegal MP3
download sites ‐ update" (http://www.side‐
line.com/news_comments.php?id=13066_0_2_0_C), has been given
proper consideration.

Being an on‐line merchant yourself, you cannot be unaware of
the fact, that credit card processing is a service
completely separate from on‐line distribution of goods, and
is usually provided by a third party company, Chronopay BV
in our case.

No information about customers� credit card accounts is ever
made available to a merchant�s employees thus making the
events, described in the article impossible.

This article, according to confession of its author, is
based on rumors and disseminates apparently false
information without giving any proofs thereof, thus
compromising our site and organizations like Visa
(https://usa.visa.com/personal/security/vbv/index.html),
MasterCard (http://www.mastercard.com), SRC Security
Research & Consulting GmbH (http://www.src‐
gmbh.de/en/index.htm), Electronic Transactions Association
(http://www.electran.org) and many others involved in
certification and regulation of credit card processing
companies worldwide.

We believe publication of inaccurate and misleading
information to be a major professional misconduct and
suggest you to remove the article from your site.

Sincerely yours,

‐‐
Mp3Sugar.Com Team

Posted by: Side-Line on Mar 31, 06 | 10:08 am

we legally can't, so that's why we don't. we could give alist of names here as well, but we cannot legally. if other sites are too scared running this story so be it, at least we have done our duty. the future will tell we are 100% right.

Posted by: peetree on Mar 30, 06 | 9:30 pm

'Legalities' and 'illegalities' aside, the focus of this article is fraud (if you don't believe me look at the picture!) and not on whether or not these sites are legal. As the laws on the purchase of digital music are still in the early stages, (and by laws I mean governmental laws, not music industry 'laws' or russian website 'laws'), it is inexcusable to slander websites a) in a time of such relative uncertainty and b) when laws are not the same in every country. That particular subject deserves an article in itself, and rightly so.
Back to the matter of fraud, if these sites are (as Side Line reports) responsible for fraud, I ask Side Line, out of courtesy, to produce a blacklist of these particular sites. Are you out to warn consumers or create panic? The tone of your article suggests you do not like these 'illegal' websites; I then beesech you to not hesitate in revealing their identities. Fraud is a terrible abuse of trust, please help prevent others from falling victim to fraud and denounce. However if you cannot do this for legal reasons, I apologise and understand.
PT

Posted by: Issuehandler on Mar 30, 06 | 5:38 pm

@ken: In fact no customer of these services is able to proof the legality or illegality of the mentioned services. I understand you. But the problem of the basic news is, that the subject is "fraud of credit-card numbers". Not only these services are potentionally able to misuse their customers information also like e-mail-adresses for spamming purposes. The bigger problem is illegal file-sharing, sure. Who earns enough money to pay for someone like Robbie Willimas millions and millions of money? The music-industry. I think i fact of this music will be subject of illegal online-purposes like file-sharing. Customers may say: "If a CD will have cost of 10 dollars or so I would buy it at a store". But this is a long story...
@side-line: A mail is only a mail. Who says sure, that the card-numbers of the mailwriters were stolen from the mentioned sites?
If the message is really true, we will see it at music-related sites in the next days or weeks...

Posted by: Ken on Mar 30, 06 | 3:56 pm

My band's new album was released on March 21st. Within six days, via someone in the USA, it and the Australian only release single was available on maxalbums.com and since then has spread to several other Russian sites. Some files were hosted on USA servers, they have now been removed as this qualifies as Contributory and/or Vicarious Copyright Infringement under US Federal Law, Title 17, United States Code, Sections 501 and 506. It's *illegal*. The band does *not* even have copies of the album *themselves* yet, but scumsucking sites in Russia have enabled now over 200 downloads of the full album of which we or our label does not see a cent. We the copyright holders did NOT give permission for this use, it is piracy fair and square and all you damned anti-establishment types who think downloading this stuff is ok can go to hell. Our three years of hard work and careful planning put into this album has been stolen. How does that help pay for the expensive audio equipment, instruments, CD mastering, artwork proofs etc etc etc. Flame me if you want, but either way it's bloody stealing and you know it, no matter how you try and justify it.
Ken Evans/ Tycho Brahe http://www.tycho.com.au

Posted by: Side-Line on Mar 30, 06 | 11:09 am

we have the mails and complaints, that is proof enough + the fact that now over 30 labels have announced us they do not get a single dime from that mobfirm is even more a fact prooving these are gangsters. you want to work with gangsters? do so but then see what consequences you might expect including credit cards being frauded as seems to be the case now.

btw the fact that no other press reports about it is their problem, nobody announced the mp3 leaking of the new depece mode single, promodvd etc either except side-line and we were right all the way as shown weeks later.

Posted by: Issuehandler on Mar 30, 06 | 10:11 am

Hi there,
this message seems to be propaganda only. In fact most of the above mentioned services uses external companies for their payments.
E.g. mp3search.ru: All payments are carried out for company: ChronoPay (http://www.chronopay.com/).
All client's information (name, surname, credit card number(!)) go through secured connection (https) on these sites. MP3Search.Ru as a shop knows the result(!) of a payment only (whether it successful or not).
ChronoPay.Com company have international certificates from VISA and MasterCard which confirm their reliability.

To be careful and stay tuned into the news, sure, is important. But if U try to search for more news about this topic with google or altavista: There is absolut no further information! Only side-line gives this "news".

As mentioned above I think it would be important for side-line to confirm the news by proof, isn't it?

Posted by: todg6 on Mar 30, 06 | 2:03 am

So can any of these readers please confirm they have had frauduent credit card transactions from these sites???
If it's true, and Side-Line has been inundated by e-mails, wouldn't people be speaking out here... about actual cases of fraud, rather than the morals of illegitimate downloads?

Posted by: Caustic... on Mar 29, 06 | 3:14 pm

Sound Tech, when you put out an actual CD instead of justifying your thievery and finally understand how much downloading is hurting an industry then shut your ignorant hole and let the big kids talk.

It's cute that you think hard-working musicians should be able to "[make] a living off [their] art," but if the music is so horrid why are people like you stealing it to begin with. Plus, who are you to say that some dipshit r&b singer CAN'T get rich off of their craft? Is it not a legitimate way to do so?

This is besides the point that MOST musicians out there getting ripped off by these sites are NOT making a living off of the music, but instead are lucky enough to be on a label trying to break EVEN on the CD. Make no mistake-- some artists do very well, but you're completely misguided if you think you can justify stealing something that is commercially available by saying a couple useless singers have a house or two because of their work.

And if this IS true and someone got burned for it, I feel for them...but only a little.

Posted by: Delameko Stone on Mar 29, 06 | 10:05 am

Sound Tech, you are a fool. Just because the Russian authorities haven't been able to close Allofmp3.com down doesn't mean they aren't selling music illegally... If you buy from them you are both a fool and naive. Why even bother buying them from Allofmp3.com? You might as well just download them for free, the people you are ripping off will see the same amount of money either way...

Posted by: fluffybob on Mar 29, 06 | 4:58 am

This article brought to you by the "Make everyone afraid of using overseas MP3 sites" committee.

Editor's note : do what you want, don't complain afterwards

Posted by: Sound Tech on Mar 29, 06 | 3:31 am

You should probably be aware that you have ignited something of a flame war on Digg. Most people simply do not believe your story and, quite frankly, who could blame them? You should post where you get your information, instead of "several recieved e-mails"
And another tidbit of information - Allofmp3.com is in fact legal to use in the UK as well as the US. It does not break the laws of its point of origin (Russia), and current import laws do not require any type of taxation on data files entering the country. Therefore, until Russia overturns its ruling on AllofMp3, it is perfectly legal to use.

Remember - file downloading is not to blame for poor record sales: That honor belongs to the record companies who market music that everyone knows is horrid. And furthermore, if artists are suffering so greatly, why do I keep seeing articles about r&b stars' new houses on the Pacific Beach in the US? I will feel bad about depriving them of money when they learn that music is not a way to make money - it is a means of expression. There is nothing wrong with a musician making a living off of his art, but they do not merit top-level status in the world.

Posted by: genDAV on Mar 29, 06 | 12:58 am

the forums have, right now mind you even, artists AND labels requesting royalties that they have not received. artists and label catalogs that did not asked to be included with this service. how is that not an act of piracy..

Posted by: brokekid on Mar 29, 06 | 12:23 am

I agree with martfin...do these companies stand to make more money from ripping off a few users thousands of dollars and ruining their business model/reputation or to continue to sell cheap music? Is this an RIAA ruse? I want to see the proof!

Posted by: martfin on Mar 29, 06 | 12:05 am

Thats kind of weird because the payment prcessing system that allofmp3 uses is Chronopay which is a legitimate comapny based in Holland and is certified by Visa. Could it be the record comapnies are doing this to stop people using it?

Posted by: on Mar 28, 06 | 9:38 pm

one word - Karma

Posted by: Caustic... on Mar 28, 06 | 4:32 pm

Not that I don't sympathize, but are they SURPRISED?!

Posted by: MKX111 on Mar 28, 06 | 12:25 pm

Do people still pay to download songs?????.. Rare these days!!

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