On Tuesday, the Associated Press reported that a Boston federal grand jury indicted 11 people with a variety of charges in what is being called “largest hacking and identity theft case ever prosecuted by the Department of Justice.”
The renegade techies allegedly hacked into the computer databases of nine major U.S. retailers and installed software used to “capture” sensitive information, namely credit card numbers, passwords, and billing addresses. The information was stored in international computer servers and from there, was either sold or personally manipulated.
The 11 hackers- three Americans, one Estonian, three Ukrainians, two Chinese, one Belarusian, and one unidentified felon, are being charged with “theft and sale of more than 40 million credit and debit card numbers.”
Other official charges include:
- conspiracy
- computer intrusion
- fraud
- identity theft
Attorney General Michael Mukasey described the hackers’ calculated actions, concluding that they “used sophisticated computer hacking techniques, breaching security systems.” After successfully breaking into a system, they installed software used to collect “enormous quantities of personal financial data.”
Sensitive data, particularly the credit card information, are prize loot in a hacker heist, and Mukasey reported that they “then allegedly sold [the information] to others or used themselves."
Their actions "caused widespread losses by banks, retailers, and consumers."
Retailers victimized by the hackings include:
- TJX Cos
- BJ& 39;s Wholesale Club
- OfficeMax
- Boston Market
- Barnes & Noble
- Sports Authority
- Forever 21
- DSW
The AP reported that Miami resident Albert “Segvec” Gonzales is considered the ring-leader of the group. If convicted of all charges, including computer fraud, wire fraud, access device fraud, aggravated identity theft and conspiracy, he faces a maximum sentence of life in prison.
U.S. Attorney Michael J. Sullivan succinctly stated: “While technology has made our lives much easier it has also created new vulnerabilities.” Ain’t it the truth.
e-Commerce websites are prime targets for hackers such as these eleven. Shopping online may be convenient and fun, but it also carries risks just like any feature of Web 2.0 technology.
Punishing cyber-scammers like Gonzales and his team is a great way to set an example, but we all need to exercise caution when online and work towards a safer Internet community for everyone to enjoy.
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