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160 million credit cards later, 'cutting edge' hacking ring cracked
NBC News ^ | By Bob Sullivan

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 ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; News/Current Events; Russia
KEYWORDS: 7eleven; albertgonzalez; aleksandrkalinin; creditcardfraud; discover; dmitriysmilianets; dowjones; hackers; hannafordbrothers; identitytheft; jcpenney; jetblue; mexico; mikhailrytikov; moscow; nasdaq; netherlands; paulfishman; romankotov; russia; syktyykar; ukraine; vladimirdrinkman; wikileaks

1 posted on 07/25/2013 1:59:48 PM PDT by Jim Robinson
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To: Jim Robinson

Gee whiz, you’d think they worked for the government.


2 posted on 07/25/2013 2:03:33 PM PDT by fieldmarshaldj (Resist We Much)
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To: Jim Robinson
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 NSA must have gotten jealous.

3 posted on 07/25/2013 2:04:59 PM PDT by Alex Murphy
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To: fieldmarshaldj

Government hacking is “legal:” NSA. And so is highway robbery: IRS.


4 posted on 07/25/2013 2:07:21 PM PDT by Jim Robinson (Resistance to tyrants is obedience to God!!)
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To: Alex Murphy

Just watch, this may be the last you hear of this, they will be working FOR the NSA very very soon.


5 posted on 07/25/2013 2:07:41 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: Alex Murphy

That’s why you should never steal. The Feds don’t like the competition.


6 posted on 07/25/2013 2:09:20 PM PDT by fieldmarshaldj (Resist We Much)
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To: Jim Robinson

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.


7 posted on 07/25/2013 2:22:39 PM PDT by PATRIOT1876 (The only crimes that are 100% preventable are crimes committed by illegal aliens)
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To: PATRIOT1876
They should get a year in jail for each card that they stole.

I would give them a small cut for each card they stole....they might last for a good thousand cuts or so....

8 posted on 07/25/2013 2:24:42 PM PDT by dfwgator
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To: All
Here's another variation of Russian crime:

3/30/13 NY Post, By Mitchell Madux ---Latino bank-fraud ; pizza guy really knew how to make some dough A latino Domino’s 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 Domino’s 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.

SOURCE http://www.nypost.com/p/news/local/domino_rakes_in_bank_fraud_dough_acg4r5AIIJcj6JSCuOatgP

9 posted on 07/25/2013 2:33:01 PM PDT by Liz
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To: All
ALL IN THE FAMILY Wife, mom and cousin plead guilty to helping NY CityTime scammer

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. Mazer’s 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 city’s 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, DOI’s 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 city’s 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. She’s 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 Mazer’s case is decided.

SOURCE http://www.nypost.com/p/news/local/wife_mom_and_cousin_plead_guilty_zpjQlgvkLq03uVj1RWm3pK

10 posted on 07/25/2013 2:36:21 PM PDT by Liz
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To: FRiends

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11 posted on 07/25/2013 2:37:43 PM PDT by deoetdoctrinae (Gun-free zones are playgrounds for felons.)
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To: Jim Robinson
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.

They got to mean the corporate victims... it's not like anyone had a $75 million credit line on his or her credit card?!?

12 posted on 07/25/2013 2:52:10 PM PDT by HiTech RedNeck (Whatever promise that God has made, in Jesus it is yes. See my page.)
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To: PATRIOT1876
They should get a year in jail for each card that they stole.

That sounds fair to me. Sure, 160 million years is a lot but they'll be up for parole in only 80 million.

13 posted on 07/25/2013 2:53:29 PM PDT by Billthedrill
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To: Liz

Amazing dollar amounts here. Must be a better way to protect

this info.


14 posted on 07/25/2013 2:55:36 PM PDT by stephenjohnbanker (K I L L T H E B I L L !!)
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To: fieldmarshaldj
Gee whiz, you’d think they worked for the government.

Where do you think Obama's Organizing for America is getting it's money, hmmmm?????

15 posted on 07/25/2013 2:59:53 PM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: stephenjohnbanker

There’s some cunning criminals out there-—no matter the built-in safeguards.


16 posted on 07/25/2013 3:02:25 PM PDT by Liz
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To: Jim Robinson

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...


17 posted on 07/25/2013 3:07:22 PM PDT by gaijin
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To: Jim Robinson

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.


18 posted on 07/25/2013 3:36:40 PM PDT by noinfringers2
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To: Jim Robinson

Isn’t it about time that 0bama awards them all with U.S. Citizenship? ;-)


19 posted on 07/25/2013 4:35:30 PM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
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To: Jim Robinson

If they were illegal immigrants identify theft is no big deal...


20 posted on 07/25/2013 6:39:18 PM PDT by JoanneSD
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks JimRob.


21 posted on 07/25/2013 8:28:22 PM PDT by SunkenCiv (It's no coincidence that some "conservatives" echo the hard left.)
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To: Jim Robinson

I’d hire them to hack into the IRS.


22 posted on 07/25/2013 8:48:11 PM PDT by unixfox
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To: gaijin

“VERY rarely you can get local cops close to where the fraud might have originated to take an interest, but it’s rare.”

Of course. The police exist for the defense and security of the state. They have no legal responsibility to provide services to you.


23 posted on 07/26/2013 4:20:21 AM PDT by RKBA Democrat (GOTS: Food, water, guns, ammo, useful skills, cash, and precious metals.)
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To: Jim Robinson; All
Only Jim Robinson is allowed to post stories from NBC... 99.9999% of NBC stories stink so bad is why...

I honestly don't know if this is sarcasm or not... Too much truth that NBC puts out propaganda garbage...

24 posted on 07/26/2013 7:24:37 AM PDT by topher (Traditional values -- especially family values -- which have been proven over time.)
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To: Jim Robinson

We just need more Agile Cyber Security “Prooofessionals” running in circles, and more layers of politically correct IT hierarchy wearing pink/purple shirts on Thursday to keep us safe Jim.

“It’s about jobs”

Fox Mr. Charlie Fox - please trot to the nearest Secure tin can and string phone.


25 posted on 07/26/2013 7:53:10 AM PDT by TArcher ("TO SECURE THESE RIGHTS, governments are instituted among men" -- Does that still work?)
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