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Virginia Beach couple accused in credit card fraud scheme using Bitcoin

Court paperwork said Kelsei Williams and Rickie Bailey Jr. used cryptocurrency to use fraudulent credit cards and use them at numerous hotels.

VIRGINIA BEACH, Va (WVEC) — A husband and wife are behind bars after being arrested for a laundry list of credit card fraud charges.

According to court paperwork, says Kelsei Williams and Rickie Bailey Jr. used cryptocurrency to use fraudulent credit cards. The first offense was last summer when they used a card to check into the Ocean Beach Club Resort at the Oceanfront.

Police said they tracked the couple for months and found out the two did the same thing at numerous other hotels.

The paperwork said Williams eventually admitted that her husband stole credit card numbers using Bitcoin.

"Bitcoin can be used for a lot of good things, but it can also be used for a lot of illicit things,” said Terry Reece, a cybersecurity expert at Sera-Brynn. “The Bitcoin piece is not that difficult because you can buy a wallet. It’s pretty straightforward because there are exchanges online."

Documents said Bailey maintained a Bitcoin account on his phone. He purchased the credit card numbers online and then stamped blank cards with those numbers and a fake name.

"Those credit care breaches were probably done through some type of e-commerce store that had been compromised,” Reece said. “There have been certain years where online shopping carts have been infected with malware, and the malware will actually pull the credit card number."

Reece said it’s important for people to check bank statements as technology evolves.

"Check the bank statements, check the statements monthly,” Reece said. “I think with the advent of paperless statements, people might check them less."

The couple faces 33 fraud charges in Virginia Beach including credit card forgery, defrauding hotels and motels, conspiracy and identity theft.

Williams also faces fraud charges in Chesapeake. The couple is expected back in Virginia Beach court in December.

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