2 Investigators

Cheating The CTA: Illegal Sale Of Fare Cards

CHICAGO (CBS) ― In an undercover investigation CBS 2 Investigator Pam Zekman uncovered a scam involving the sale of CTA fare cards.

The investigation started with a call from a viewer who reported that for years hustlers have been selling bus and train fare cards at reduced rates all over the city. CBS 2 went out and caught them in the act, cheating the CTA.

So far this year the CTA sold more than $200 million worth of fare cards to commuters. But the CTA has no idea how much it has lost to ticket scams.

In just a few days, CBS 2 met hustlers brazenly intercepting commuters at ticket machines, taking business away from the CTA and putting money in their own pockets.

None was more brazen a man at the 95th Street Red Line station. With at least five Chicago police officers in the area, he sold cards to three CBS 2 staff members, including an investigative producer.

"He said to me 'that same ticket you're about to spend $2 dollars on I can give you for a dollar,'" Phil Hayes said.

Minutes later he sold transit cards to two men, then just 15 seconds after speaking with a CTA employee, he sold a card to two more commuters.

On the same day, another guy sold another CBS 2 researcher a half-priced card, and later another one to a CBS 2 cameraman. A month later he sold us five more.

"I asked him how often are you out here," Nate Rodgers said. "He said 'I get them every week.'"

Another tip led the 2 Investigators to a West Side bus stop where another man sold the CBS 2 researcher an envelope full of $2 and 25 cent cards – 22 for $20, less than half the CTA price.

On the same corner on a different day, a woman sold us a 7-day pass.

"She said, 'you know this costs $20 at the currency exchange.' I said, 'well how much can I get it for?' She said $14," Rodgers said.

The biggest score came on the same corner another week later. For $30 a woman sold the CBS 2 researcher a four-year reduced fair permit. It allows seniors, the disabled and children to purchase rides for half price.

The permits have a picture so supposedly no one else can use them, because, after all, in the wrong hands a single permit could be used to cheat the CTA out of thousands of dollars.

"She said you can use it anywhere," Rodgers said.

Anyone can apparently use it even if they look nothing like the person on the card. That's because no one is at the turnstiles checking to make sure the person using it is the person to whom it's issued.

When asked where all these tickets are coming from, CTA President Ron Huberman said, "We sell millions of dollars worth of passes to not-for-profit entities who are using those passes providing their clients with a means to get around. Unfortunately those clients are selling their passes for other purposes."

So what about the wheeling and dealing of transit cards the 2 Investigators witnessed with police and CTA security nearby?

"If that occurred ... and it was in view of either police or our own security individuals that is unacceptable to the CTA," Huberman said.

Based on information CBS 2 provided, the CTA has launched an investigation to plug up security lapses and implement additional safeguards. Huberman says 15 arrests have been made in the last two months for theft of services at the 95th Street station, and more arrests are expected.

The same day CBS 2 interviewed Huberman, he said he'd witnessed someone on the North Side illegally selling a reduced fare card and had that person arrested.

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