#stayhome Maintain the distance, wash your hands, and follow instructions from the health authorities.
RSS   Newsletter   Contact   Advertise with us

NASDAQ, Dow Jones, others targets in largest data breach conspiracy

Share on Twitter Share on LinkedIn
Staff writer ▼ | July 26, 2013
A federal indictment charges five men with conspiring in a worldwide hacking and data breach scheme that targeted major corporate networks, and stole more than 160 million credit card numbers.
Paul J. Fishman
Paul J. FishmanA federal indictment charges five men with conspiring in a worldwide hacking and data breach scheme that targeted major corporate networks, and stole more than 160 million credit card numbers.


The attack resulted in hundreds of millions of dollars in losses and is the largest such scheme ever prosecuted in the United States.

New Jersey U.S. Attorney Paul J. Fishman announced the charges along with Special Agent in Charge James Mottola of the U.S. Secret Service (USSS), Criminal Investigations, Newark Division and Acting Assistant Attorney General for the Department of Justice's Criminal Division Mythili Raman. The USSS led the investigation of the indicted conspiracy.

The defendants allegedly sought corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information they could exploit for profit.

The defendants are charged with attacks on NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard. It is not alleged that the NASDAQ hack affected its trading platform.

"This type of crime is the cutting edge. Those who have the expertise and the inclination to break into our computer networks threaten our economic well-being, our privacy, and our national security. And this case shows there is a real practical cost because these types of frauds increase the costs of doing business for every American consumer, every day," U.S. Attorney Fishman said.

The five men each served particular roles in the scheme. Vladimir Drinkman of Syktyykar and Moscow, Russia, and Alexandr Kalinin of St. Petersburg, Russia, each specialized in penetrating network security and gaining access to the corporate victims' systems.

Roman Kotov of Moscow, also a hacker, specialized in mining the networks Drinkman and Kalinin compromised to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov f Odessa, Ukraine.

Dmitriy Smilianets of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.

Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited September 7, 2012, and remains in federal custody Drinkman is in custody in the Netherlands pending an extradition hearing. Kalinin, Kotov and Rytikov remain at large.


 

MORE INSIDE POST