A fraud racket with the potential to steal the credit card details of hundreds of Sydney taxi users has been dismantled following police raids.

Several members of the group were arrested last week in a card-cloning den set up in a motel room in Chullora.

Some 800 blank credit cards, as well as laptops, a skimming device and a card encoder were found at the scene.

Police will allege the men were part of a sophisticated fraud syndicate with the potential to net hundreds of thousands of dollars through skimming key details off the magnetic strip on credit cards as they were used in taxis and other locations.