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U.S. indicts American, two in Russia for biggest ever cyber-identity- theft: over 130 million credit, debit cards compromised
Washington Wire Global Report Aug. 10, 2009

Information relating to over 130 million credit cards and debit cards, including card numbers, was allegedly hacked by one American and two Russian conspirators in what is believed to be the largest hacking and identity-theft case ever brought by the U.S. Department of Justice.

The Acting U.S. Attorney for the District of New Jersey announced on Aug. 17, 2009, a two-count Newark federal grand jury indictment of a 28-year-old American hacker, Albert Gonzalez, and two unnamed co-consipirators inside Russia.

The indictment alleges that the hackers utilized:

:: malware, which infected target systems and later erased itself
:: SQL injection attacks
:: "sniffers" programs to intercept card information as it was being processed
:: computer proxies to disguise the point of origin of the attacks
:: internet messaging to communicate with one another, including during attacks
:: intelligence-gathering reconnaissance at retail stores to scout out the type of "point-of-sale" equipment being used by target companies

Brought under 18 U.S.C. §§ 371 and 1349, the indictment alleges, in Count One,

conspiracy to:

:: gain unauthorized access to computers
:: commit fraud in connection with computers
:: damage computers

(if convicted, bringing up to 5 years in prison and a $250,000 fine)

and, in Count Two:

:: wire fraud

(if convicted, an additional 30 years in prison and a fine of up to $1 million or up to twice the gain resulting from the crime, whichever is greater).

The indictment alleges infiltration of data at:

:: 7-Eleven, Inc.
:: Heartland Payment Systems Inc.
:: Hannaford Brothers Co.
:: two additional unidentified corporate victims

Gonzalez was indicted in 2008 in the Eastern District of New York on May 12, 2008, and the District of Massachusetts for other conspiracies to hack into:

:: TJX Companies
:: Dave & Busters
:: BJ’s
:: Wholesale Club
:: OfficeMax
:: Boston Market
:: Barnes & Noble
:: Sports Authority
:: Forever 21
:: DSW

In 2003 Gonzalez was arrested in connection with ATM and debit card fraud.

Links and Further Reading

:: Three Men Indicted for Hacking into Five Corporate Entities, including Heartland, 7-Eleven, and Hannaford, With Over 130 Million Credit and Debit Card Numbers Stolen [PDF], U.S. Attorney, District of New Jersey, news release, Aug. 17, 2009

:: U.S. v. Gonzalez, Indictment [PDF]

:: U.S. Attorney, District of New Jersey [PDF]

:: Arrest in Epic Cyber Swindle, Wall Street Journal, Aug. 18, 2009

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