Legal News

DOJ indicts 11 for stealing 40 million credit, debit card numbers

By Jason Siegel

The U.S. Department of Justice indicted 11 individuals in federal courts in California, Massachusetts and New York for allegedly stealing more than 40 million credit and debit card numbers from major retailers through sophisticated computer hacking techniques.

In a press release and press conference in U.S. Attorney General Michael B. Mukasey characterized it as the largest hacking and identity theft case the department has prosecuted to date.

"With the cooperation of our law enforcement partners around the world, we can identify, charge and apprehend even the most sophisticated international computer hackers," stated Mukasey.

According to the Justice Department, the criminals gathered the debit and credit card numbers by so-called "wardriving," or driving around with a laptop computer to connect to accessible computer networks. The hackers then allegedly used so-called installed "sniffer" programs to collect the card numbers, password and account information from the companies' networks.

National retail companies were hacked in the scheme, including: Barnes & Noble Inc., BJ's Wholesale Club Inc., Boston Market Corp., DSW Inc., Forever 21 Inc., OfficeMax Inc., the Sports Authority Inc. and the TJX Cos. Inc.

The conspirators allegedly sold some of the stolen card numbers over the Internet to other criminals in the U.S. and Eastern Europe. The defendants also encoded some card numbers on magnetic strips of blank cards to make ATM withdrawals.

The indicted individuals include three U.S. and three Ukrainian citizens, two from the People's Republic of China, one from Belarus and Estonia and one individual from an unknown country who is known only by an online alias.

In the U.S. Court for the District of Massachusetts three Miami residents were indicted on Aug. 5, including Albert "Segvec" Gonzalez, and co-conspirators Christopher Scott and Damon Patrick Toey. The charges include: computer fraud, wire fraud, access device fraud, aggravated identity theft and conspiracy. Gonzalez, who was working as a secret service informant on other matters while he was being investigated, faces a maximum penalty of life in prison. USA v. Gonzalez, No. 1:08-cr-10223 (D.Mass.); USA v. Scott, No. 1:08-cr-10224 (D.Mass.); USA v. Toey, 1:08-cr-10225.

In federal court in San Diego, Sergey Pavolvich, Dzmitry Burak and Sergey Storchak, were charged with conspiracy to traffic in unauthorized access devices.

Five related indictments were also unsealed in San Diego.

Maksym "Maksik" Yastremskiy and Aleksandr "Jonny Hell" Suvorov were charged with crimes related to selling the card data stolen by Gonzalez and others. The charges against Suvorov include: conspiracy to possess unauthorized access devices, possession of unauthorized access devices, trafficking in unauthorized access devices, identity theft, aggravated identity theft, and aiding and abetting. Yastremskiy's charges are: trafficking in unauthorized access devices, identity theft, aggravated identity theft and conspiracy to launder monetary instruments.

Hung-Ming Chiu, Zhi Zhi Wang and someone known by the online nickname "Delpiero" were charged with conspiracy to possess unauthorized access devices, trafficking in unauthorized access devices, trafficking in counterfeit access devices, possession of unauthorized access devices, aggravated identity theft, and aiding and abetting.

Gonzalez, Suvorov and Yastremskiy were charged in U.S. District Court in Eastern District of New York in May for allegedly hacking into computer networks run by the Dave & Buster's restaurant chain and stealing credit and debit card numbers. USA v. Gonzalez, USA v. Suvorov, USA v. Yastremskiy, No. 2:08-cr-00160 (E.D. N.Y.)

Gonzalez is currently in pre-trial confinement. Yastremskiy and Suvorov were apprehended in Turkey and Germany, respectively, and await extradition.

-- Sheri Qualters

Full post as published by Legal Pad | LA on August 06, 2008 (boomark / email).