FBI agent: HushPuppi caught in $400k fraud deal while in US jail

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Uba Group

An agent of the Federal Bureau of Investigation of the United States government has said that Instagram celebrity, Hushpuppi, has received fresh charges as US prosecutors submit court documents showing that he committed fraud and laundered over $400,000 while in prison.

The documents before the United States District Court of California, on Wednesday, showed fresh evidence indicting HushPuppi of committing fraud and money laundering in the US Federal correctional facility.

The court documents stated that Hushpuppi, while in US Federal correctional facility, participated in the purchase and laundering of Economic Impact Payment debit cards fraudulently obtained from stolen data of US citizens and residents.

Economic Impact Payments are financial support offered by the US government to US residents according to the CARES Act.

One of the ways eligible US residents receive their Economic Impact Payments is by debit cards.

It was found that hackers use data of US residents to file and obtain Economic Impact Payments debit cards and then sell off the EIP cards in underground marketplaces to other cyber criminals.

The United States authorities said that prisoners had limited access to telephone, video, internet and computer use because of their right to privacy in a court filing.

Like the rest of the detainees, Hushpuppi was granted access to the computer network as well.

However, between January 28 and March 4, security at a federal prison in the United States noticed that Hushpuppi was using the internet more often.

His activities were said to have been tracked when a dedicated system was set up for him and recorded for 7 days.

It was found that Hushpuppi was actively buying EIP debit cards from an underground cyber criminal marketplace called StimulusCard (“https://stimuluscard.com/”).

Within the period, Hushpuppi reportedly bought a total of 58 EIP debit cards with a total value of $429,800 on the site and laundered the money through one AJ.