Calif. scam ring busted for fake Target credit cards

STOCKTON, Calif. - Target stores around this northern California city have been hit with a credit card security breach, according to information contained in a search warrant affidavit filed by U.S. postal inspectors.

Postal inspectors served two search warrants in Stockton on Thursday, seizing everything from computers inside the homes to the contents of vehicles outside.

The search warrant affidavit details a sophisticated scheme to obtain Target Red Card holder's credit card numbers.

Suspect Boone B. Khoonsrivong allegedly told investigators he had a degree in computer science and had figured out Target's credit card sequencing system, which allowed him to make counterfeit cards. The cards were used to buy at least $200,000 in merchandise and may have compromised hundreds of customer's accounts.

Reached for comment, Target sent a statement: "It's important to note that there is absolutely no indication that this situation is in any way related to a breach of Target's networks or point-of-sale systems.

"Information protection is a top priority at Target and our investigations team has partnered with local California law enforcement and the local office of the U.S. Postal Inspection Service to bring charges against this individual that we believe has engaged in physical credit card fraud."

The scheme was first detected back in January at about the same time Target suffered a massive breach of credit card security potentially affecting millions of cards. Postal inspector Jeff Fitch said it's "too soon to tell" if the two cases are connected.

Target customers who were already affected by the breach last year were stunned to hear of another that might affect them.

"I had two cards reissued cards because I guess they were a part of the compromise, potentially, so that's very concerning and makes me wonder what's going on with Target's security for that," said Laura Jones of Sacramento, who was shopping at a Target Store.

Khoonsrivong, the alleged mastermind, is said to have enlisted others as part of a "crew" to use the counterfeit cards to make purchases at several stores in Stockton, Lodi and other parts of California's central valley.

The search warrant affidavit makes it clear that investigators believe hundreds of Target customers may have had their identities stolen.

Target sent News10 this statement on Friday: