Skip to comments.160 million credit cards later, 'cutting edge' hacking ring cracked
Posted on 07/25/2013 1:59:48 PM PDT by Jim Robinson
For nearly a decade, a band of cybercriminals rampaged through the servers of a global business who's who: Among the victims were 7-Eleven, Dow Jones, Nasdaq, JetBlue and JC Penney. Prosecutors say the hackers stole "conservatively" 160 million credit card numbers, and the dollar value of the crimes they helped facilitate is enormous just four of the victims are out $300 million. The suffering caused to identity theft victims was "immeasurable," say prosecutors.
On Thursday, five of the gang's members were indicted. One is in custody in the U.S., a second is awaiting extradition in the Netherlands, and three more are still at large in what U.S. Attorney Paul Fishman said is the largest data heist case ever prosecuted.
Dmitriy Smilianets, 29, of Moscow, is in custody, while Vladimir Drinkman, 32, of Syktyykar, is awaiting an extradition hearing. The other three Aleksandr Kalinin, 26, Roman Kotov, 32, and Ukrainian Mikhail Rytikov, 26, remain at large.
Originally part of a crime ring led by Albert Gonzalez, who was arrested back in 2008, the five continued their data conquests even after Gonzalez was sentenced to 20 years in prison.
The group kept security professionals and journalists busy for years, causing embarrassing data leaks at grocery-store chain Hannaford Brothers Co. (4.2 million cards), Discover (2 million cards), and Dow Jones (10,000 corporate logins).
Often, one of the criminals would shop at the retailers to observe checkout registers and deduce which systems were used, assessing their vulnerability. Then, they'd gain access to credit card payment systems and siphon off millions of victims' account numbers as they were involved in transactions.
(Excerpt) Read more at nbcnews.com ...
Gee whiz, you’d think they worked for the government.
The NSA must have gotten jealous.
Government hacking is “legal:” NSA. And so is highway robbery: IRS.
Just watch, this may be the last you hear of this, they will be working FOR the NSA very very soon.
That’s why you should never steal. The Feds don’t like the competition.
They should get a year in jail for each card that they stole.
Whatever prison they go to should do an investigation and match the hackers up with other prisoners that had their identity stolen at some point for a cellmate.
I would give them a small cut for each card they stole....they might last for a good thousand cuts or so....
3/30/13 NY Post, By Mitchell Madux ---Latino bank-fraud ; pizza guy really knew how to make some dough A latino Dominos Pizza employee was a key player in a bank-fraud scheme that netted a NY crime ring millions of dollars, the feds said yesterday. Elvis Rodriguez, 24, of Yonkers, was slapped with federal bank-fraud charges after he and his accomplices allegedly used phony debit cards to withdraw millions in cash from ATMs in Manhattan and Brooklyn.
Secret Service agents say the ring paid Russian and Romanian mobsters for confidential financial info hacked from the computers of banks in the United Arab Emirates and Oman. Rodriguez and his pals then used the stolen data to make counterfeit cards.
The feds say they have bank surveillance photos of Rodriguez wearing a black Dominos Pizza cap withdrawing cash with the stolen cards. He also listed the restaurant as his employer on a passport application. The suspect and two cohorts flew from JFK to Romania in January to deliver $300,000 to the gang that provided the hacked bank data, prosecutors said at his Brooklyn federal court Thursday appearance. Defense lawyer Michael Anthony Marinaccio said Rodriguez maintains his innocence. A judge ordered Rodriguez detained pending trial. Dominos rep did not immediately return a call for comment.
The wife, mother and a cousin of the mastermind behind the massive NY CityTime payroll-system scam pleaded guilty today to helping Mark Mazer launder $25 million in kickbacks. Mazers wife, Svetlana, his mother Larisa Medzon, and cousin Anna Makovetskaya also agreed to forfeit more than $27 million in cash and various properties worth more than $4 million as part of their agreements ironed out before a federal judge in Manhattan. The trio last month had said they needed a separate trial from Mark Mazer because of the overwhelming amount of evidence federal prosecutors have against him and the other defendants in the case, which is set for trial Sept. 30. Prime contractor Science Applications International Corp. last year paid the city $500 million to avoid prosecution for profiting from the scandal, in which the cost of a new, high-tech municipal payroll system ballooned from $63 million to more than $600 million.
Along with the citys recovery last year of $500 million from the vendor, this case continues to move forward yielding results for the taxpayers, said city Department of Investigation Commissioner Rose Gill Hearn following the hearing. Having turned the tables on this criminal network years ago when DOI found their shell companies and the millions salted away in the hidden accounts, DOIs work on this case will continue through its conclusion, including a commitment of extensive resources.
Svetlana Mazer, 47, pleaded guilty to one count of obstruction of justice, admitting that in June 2010 she filed fraudulent documents with the citys VENDEX system while disclosing companies she owned. She has agreed to serve 10 to 16 months behind bars and shell out $3,000 to $30,000 in fines as part of a signed plea deal. Medzon, 68, through her Russian interpreter pleaded guilty to structuring transactions to evade currency reporting requirements. She admitted withdrawing $200,000 from multiple banks citywide between June 2006 and June 210 but in increments of $5,000 or less to avoid scrutiny.
She agreed to spent 24 to 30 months in jail and pay $5,000 to $50,000 in fines through her plea agreement. Makovetskaya, 42, pleaded guilty to conspiracy to make false statements to a bank. Shes agreed to spent 18 to 24 months in jail and pay $4,000 to $40,000 in fines. All remained stone-faced and mum while leaving Manhattan federal court yesterday. Mark Mazer also remains out on bail. His three relatives have asked that their sentencing be held after Mazers case is decided.
They got to mean the corporate victims... it's not like anyone had a $75 million credit line on his or her credit card?!?
That sounds fair to me. Sure, 160 million years is a lot but they'll be up for parole in only 80 million.
Amazing dollar amounts here. Must be a better way to protect
Where do you think Obama's Organizing for America is getting it's money, hmmmm?????
There’s some cunning criminals out there-—no matter the built-in safeguards.
I heard that the higher up the chain you report credit card fraud the less and less they care —they simply want you to GO AWAY and quit making work for them.
VERY rarely you can get local cops close to where the fraud might have originated to take an interest, but it’s rare.
The feds’ view is that this is all a very natural part of the business —a BUILT IN cost.
They don’t care how much agony you’re in —not their job.
Unless THEY are the perps, of course...
If some ‘ordinary’ Russian people can devise a system of such extensive research and data I would bet that Putin and the Russian government can have and probably even has the complete electronic files on Obama. This is why Putin can look so disdainful in the presence of Obama. I remember in WWII when Truman went to Potsdam to announce the USA had the ‘terrible’ bomb old Joe Stalin had the same look as Putin has. The Russian government knew even if Truman was or was not aware of such.
Isn’t it about time that 0bama awards them all with U.S. Citizenship? ;-)
If they were illegal immigrants identify theft is no big deal...