Hackers Carrying Out Largest Theft Of Customer Data In US. History Facing Prison
Posted by: Benjamin Vitáris
November 19, 2015
Gery Shalon, Joshua Samuel Aaron, two hackers have been charged with arranging and executing massive cyber attacks against financial institutions, brokerage firms, financial news publishers in the United States. This includes the largest theft of customer data from a U.S. financial institution in history, which is the U.S. Financial Sector Hacks.
The two man were also charged with the manipulation of security markets, in which Ziv Orenstein, a hacker from the United States, helped them with. Shalon and Orenstein also operated illegal internet casinos and payment processors on the internet. In addition to that Shalon owned the BTC exchange portal Coin.mx. The two man were arrested by Israel Police in July, 2015. They have remained in custody, as of today, until the US. Attorney succeeds in their extradition to the United States. Aaron is on the run and wanted by the police in the US. Also, another man, Anthony R. Murgio, has been charged with the operation of Coin.mx in the United States. Such as Shalon and Orenstein, Murgio was arrested in July and is standing before US. court.
These statements were made by the officials regarding the case:
“As set forth in the indictment, these three defendants perpetrated one of the largest thefts of financial-related data in history – making off with the sensitive information of literally thousands of hard-working Americans,” stated Attorney General Lynch. “These charges were made possible in large part because those victims came forward and worked with the Department of Justice to hold the perpetrators accountable. In an age when enormous quantities of vital information are stored in digital format on potentially vulnerable Internet-connected devices, public-private partnerships and information-sharing are more critical than ever. The Department of Justice is committed to protecting the financial data of all our citizens and the financial integrity of our institutions. I’d like to thank the prosecutors and law enforcement professionals who worked tirelessly on this case, and the victims who offered their full cooperation with law enforcement to make these criminal charges possible.”
“Today, we have exposed a cybercriminal enterprise that for years successfully and secretly hacked into the networks of a dozen companies, allegedly stealing personal information of over 100 million people, including over 80 million customers from one financial institution alone,” said U.S. Attorney Bharara. “The charged crimes showcase a brave new world of hacking for profit. It is no longer hacking merely for a quick payout, but hacking to support a diversified criminal conglomerate. This was hacking as a business model. The alleged conduct also signals the next frontier in securities fraud – sophisticated hacking to steal nonpublic information, something the defendants discussed for the next stage of their sprawling enterprise. Fueled by their hacking, the defendants’ criminal schemes allegedly generated hundreds of millions of dollars in illicit proceeds. Even the most sophisticated companies – like those victimized by the hacks in this case – have to appreciate the limits of their ability to uncover the full scope of any cyber-intrusion and to stop the perpetrators before they strike again. If they have been hacked, most likely others have been as well, and even more will be. The best bet to identify, stop and punish cybercriminals is to work closely, and early, with law enforcement. That happened here, and today’s charges are proof of that.”
“Shalon, Aaron and their co-conspirators allegedly robbed victim companies, often for months at a time, stealing the contact information of tens of millions of customers,” Assistant Director in Charge Rodriguez added to the case. “They cloaked themselves in secrecy, but their methods rivaled those of the traditional masked robber. Today’s indictment sheds light on an increasingly complex threat. But just as criminals continue to develop relationships with one another in order to advance their objectives, the law enforcement community has developed a collaborative approach to fighting these types of crimes.”
Special Agent in Charge Sica stated this:
“This investigation is indicative of the sophistication and complexity of cybercrime and the transnational criminal organizations that are responsible for it. Transnational cybercriminal organizations operate with impunity regardless of national borders as these criminal organizations seek to profit from information stolen through the unauthorized access to victims’ networks. Through the U.S. Secret Service global network of Electronic Crimes Task Forces, our field offices located overseas and the close cooperation of our foreign law enforcement partners, no cybercriminal is beyond our reach. We will remain relentless in pursuing these criminals wherever they may reside.”
Here is a chart of the charges and the potential prison term Shalon, Aaron and Orenstein are facing:
| Count | Defendants | Charge | Maximum Prison Term |
| One | Shalon and Aaron | Conspiracy to Commit Computer Hacking</p>
</td> | five years | </tr>
| Two | Shalon and Aaron | Computer Hacking | five years |
| Three | Shalon and Aaron | Computer Hacking</p>
</td> | five years | </tr>
| Four | Shalon, Aaron and Orenstein | Conspiracy to Commit Securities Fraud | 20 years |
| Five | Shalon, Aaron and Orenstein | Conspiracy to Commit Wire Fraud: Securities Market Manipulation Scheme | 20 years |
| Six to 12 | Shalon, Aaron and Orenstein | Securities Fraud | 20 years |
| 13 | Shalon, Aaron and Orenstein | Wire Fraud | 20 years |
| 14 | Shalon, Aaron and Orenstein | Identification Document Fraud Conspiracy | 20 years |
| 15 | Shalon, Aaron and Orenstein | Aggravated Identity Theft | Mandatory two years |
| 16 | Shalon and Orenstein | Unlawful Internet Gambling Enforcement Act Conspiracy | five years |
| 17 | Shalon and Orenstein | Unlawful Internet Gambling Enforcement Act | five years |
| 18 | Shalon and Orenstein | Operation of Illegal Gambling Business | five years |
| 19 | Shalon and Orenstein | Conspiracy to Commit Wire Fraud: Unlawful Payment Processing | 20 years |
| 20 | Shalon | Conspiracy to Operate an Unlicensed Money Transmitting Business | five years |
| 21 | Shalon | Operation of an Unlicensed Money Transmitting Business | five years |
| 22 | Shalon, Aaron and Orenstein | Money Laundering Conspiracy: Securities Market Manipulation Scheme</p>
</td> | 20 years | </tr>
| 23 | Shalon, Aaron and Orenstein | Money Laundering Conspiracy: Internet Gambling and Payment Processing Schemes</p>
</td> | 20 years | </tr> </tbody> </table>