Hacking Ring Indicted For $9 Million Fraud

A federal grand jury in Atlanta has indicted eight East Europeans on charges of hacking into a computer network operated by the credit card processing company RBS WorldPay, the U.S. Department of Justice said today.

The 16-count indictment alleges the group used sophisticated hacking techniques to compromise data encryption used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by some companies to pay their employees.

The hacking ring allegedly raised the account limits on compromised accounts, and then provided a network of "cashers" with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from more than 2,100 ATMs in at least 289 cites worldwide, including cities in the U.S., Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within less than 12 hours.

The hackers then attempted to destroy data on the card processing network to hide their hacking activity. The indictment alleges that the "cashers" were allowed to keep 30 to 50 percent of the money, but sent the rest back to the leaders of the hacking ring.

"The charges brought against this highly sophisticated international hacking ring were possible only because of unprecedented international cooperation with our law enforcement partners, particularly between the United States and Estonia," said Assistant Attorney General of the Criminal Division Lanny A. Breuer.

"Through our close cooperation, both nations have demonstrated our commitment to identifying sophisticated attacks on U.S. financial networks that are directed and operated from overseas and our commitment to bringing the perpetrators to justice."

Some of the hackers if convicted in the U.S. could be sentenced to up to 20 years in prison.
 

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Feds Charge Cable Modem Hacker

The U.S. Department of Justice has charged an Oregon man and the company he founded, TCNISO, alleging they developed and distributed products that allowed users to modify their cable modems and get free Internet access.

Acting United States Attorney Michael K. Loucks, announced that Ryan Harris, 26 of San Diego, and Redmond, Oregon, was charged in a six-count indictment with conspiracy, computer intrusion, and wire fraud.

The indictment alleges, from 2003 through 2009, TCNISO, under Harris's direction, developed and distributed hardware and software tools that allowed its customer to modify their cable modems so they could disguise themselves as legitimate paying subscribers, in order to get high speed Internet access without paying for it.

The indictment also charges that TCNISO and Harris offered on going customer support, mainly via forums that it hosted on the company website, to help customers with their cable modem hacking.

According to the indictment, one of the customers who used the company's products and assistance to steal Internet access, was a male juvenile from Massachusetts, known online as "Dshocker." In November 2008, "Dshocker," whose name is being withheld to protect his identity, was charged in federal court with computer intrusion, interstate threats and wire fraud.

If convicted, Harris faces a maximum sentence of 20 years in prison and a $250,000 fine.
 
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