Sale of fake passes cost MBTA millions

An employee of Cubic Transportation Systems was arrested for creating and selling fake Massachusetts Bay Transportation Authority passes. According to Massachusetts attorney general Martha Coakley, the man allegedly made 20,000 “ghost passes” since 2007 and sold them for a discount in person or on Craigslist. Because the passes were made on the same equipment as legitimate fare media, they were authentic but unauthorized. “The T does not sell discounted passes online,” Coakley said. “So, caveat emptor.” She estimates that the scam cost the MBTA as much as $5 million in lost revenue. A commuter rail conductor uncovered the scheme in March; he noticed that the stripe on a customer’s pass seemed discolored and turned it over to officials for investigation. The MBTA is terminating its contract with Cubic and plans to seek reimbursement for the lost revenue. “We looked at our contract with Cubic on the civil side,” said general manager Richard Davey. “We believe we have a very strong opportunity to recapture those funds.” Link to full story in The Boston Globe.

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