Feeds

Feds charge three in brain-ache $15m Pentagon payroll pillage plot

Alleged Ukrainian cyber bandits still at large

Using blade systems to cut costs and sharpen efficiencies

Three men have been indicted in the US for trying to steal at least $15m by hacking into the Department of Defence's payroll service and customer accounts at 14 different financial institutions.

The US Attorney's office in New Jersey has charged two men from Kiev in Ukraine, Oleksiy Sharapka and Leonid Yanovitsky, and a third man from New York, Richard Gundersen, with conspiracy to commit wire fraud, conspiracy to commit access device fraud and identity theft and aggravated identity theft.

According to prosecutors, Sharapka led the conspiracy with the help of Yanovitsky, while Gundersen allegedly facilitated the movement of the proceeds from the hacks. The New Yorker is in custody, but both Ukrainians are currently fugitives.

The hackers were able to gain access to bank accounts of over a dozen financial institutions and businesses, including Citibank, JP Morgan Chase, PayPal, Nordstrom Bank and Veracity Payment Solutions. Once they were in, they diverted cash from the accounts to their own bank accounts or on to pre-paid debit cards.

After that, they allegedly hired crews of individuals to "cash out" the stolen money. These "cashers" withdrew the funds from ATMs and by shopping for fraudulent purchases in the US. To help do this, the men stole US identities, which could be used to file fraudulent tax returns and to transfer money to.

The men are facing a maximum potential sentence of 27 years for the charges against them as well as a maximum fine of $250,000 or twice the gross amount of the gains they made from their offences and another $500,000 for laundering the money through international wire transfers and other means. ®

Boost IT visibility and business value

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
How long is too long to wait for a security fix?
Synology finally patches OpenSSL bugs in Trevor's NAS
Roll out the welcome mat to hackers and crackers
Security chap pens guide to bug bounty programs that won't fail like Yahoo!'s
HIDDEN packet sniffer spy tech in MILLIONS of iPhones, iPads – expert
Don't panic though – Apple's backdoor is not wide open to all, guru tells us
Researcher sat on critical IE bugs for THREE YEARS
VUPEN waited for Pwn2Own cash while IE's sandbox leaked
Four fake Google haxbots hit YOUR WEBSITE every day
Goog the perfect ruse to slip into SEO orfice
Putin: Crack Tor for me and I'll make you a MILLIONAIRE
Russian Interior Ministry offers big pile o' roubles for busting pro-privacy browser
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.