Feb 222019
 

LawFuel reports:

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that STANISLAV VITALIYEVICH LISOV, a/k/a “Black,” a/k/a “Blackf” (“LISOV”), pled guilty today to conspiring to deploy and use a type of malicious software known as NeverQuest to infect the computers of unwitting victims, steal their login information for online banking accounts, and use that information to steal money out of the victims’ accounts.  NeverQuest has been responsible for millions of dollars’ worth of attempts by hackers to steal money out of victims’ bank accounts.  LISOV pled guilty before United States District Judge Valerie E. Caproni.

Read more on LawFuel.   The full press release from SDNY appears below.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that STANISLAV VITALIYEVICH LISOV, a/k/a “Black,” a/k/a “Blackf” (“LISOV”), pled guilty today to conspiring to deploy and use a type of malicious software known as NeverQuest to infect the computers of unwitting victims, steal their login information for online banking accounts, and use that information to steal money out of the victims’ accounts.  NeverQuest has been responsible for millions of dollars’ worth of attempts by hackers to steal money out of victims’ bank accounts.  LISOV pled guilty before United States District Judge Valerie E. Caproni.

U.S. Attorney Geoffrey S. Berman said:  “As he admitted today, Stanislav Vitaliyevich Lisov used malware to infect victims’ computers, obtain their login credentials for online banking accounts, and steal money out of their accounts.  This type of cybercrime extends across borders, poses a malicious threat to personal privacy, and causes widespread financial harm.  For his audacious crime, this Russian hacker now faces justice in an American court.”

FBI Assistant Director William F. Sweeney Jr. said:  “’In addition to creating and maintaining a botnet infected with NeverQuest malware, Stanislav Lisov, a Russian national, gathered personally identifiable information of NeverQuest victims and discussed illegally trafficking that information.  As today’s plea should demonstrate, the FBI and our partners will continue to bring these actors to justice, regardless of where they may hide.”

According to the Indictment, Complaint, and other statements made during public court proceedings:

NeverQuest is a type of malicious software, or malware, known as a banking Trojan.  It can be introduced to victims’ computers through social media websites, phishing emails, or file transfers.  Once surreptitiously installed on a victim’s computer, NeverQuest is able to identify when a victim attempts to log onto an online banking website and transfer the victim’s login credentials – including his or her username and password – back to a computer server used to administer the NeverQuest malware.  Once surreptitiously installed, NeverQuest enables its administrators remotely to control a victim’s computer and log into the victim’s online banking or other financial accounts, transfer money to other accounts, change login credentials, write online checks, and purchase goods from online vendors.

Between June 2012 and January 2015, LISOV was responsible for key aspects of the creation and administration of a network of victim computers known as a “botnet” that was infected with NeverQuest.  Among other things, LISOV maintained infrastructure for this criminal enterprise, including by renting and paying for computer servers used to manage the botnet that had been compromised by NeverQuest.  Those computer servers contained lists of millions of stolen login credentials – including usernames, passwords, and security questions and answers – for victims’ accounts on banking and other financial websites.  LISOV had administrative-level access to those computer servers.

LISOV also personally harvested login information from unwitting victims of the NeverQuest malware, including usernames, passwords, and security questions and answers.  In addition, LISOV discussed trafficking in stolen login information and personally identifiable information of victims.

On January 13, 2017, LISOV was arrested in Spain pursuant to a provisional arrest warrant.  On January 19, 2018, LISOV was extradited from Spain to the United States.

*                *                *

LISOV, 33, a citizen of Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison.  The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  LISOV’s sentencing is scheduled for June 27, 2019 at 11:00 a.m. before Judge Caproni.

Mr. Berman praised the outstanding investigative efforts of the FBI.  Mr. Berman also thanked the DOJ Office of International Affairs for its assistance in this case.

The matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.

Feb 112019
 

Stephen Chen reports:

Qin Qisheng, 43, a former manager in Huaxia Bank’s technology development centre in Beijing, spotted a loophole in the bank’s core operating system that meant cash withdrawals made around midnight were not recorded.

The bank accepted his explanation that he had simply been trying to test its internal security and the cash was just resting in his own account before he returned it to his employers.

But the authorities did not accept this explanation and jailed Qin for theft in December, a ruling the appeal court upheld last month.

Read more on South China Morning Post.

via Joe Cadillic

Feb 022019
 

Christine Stuart reports:

Bangladesh’s central bank brought a federal complaint against one of the largest banks in the Philippines on Thursday to recover $80 million that it says was stolen from North Korean hackers.

At the time it was stolen from Bangladesh Bank, says lawyer John Sullivan of Yehudah Gordon, the money was being held in an account at the Federal Reserve Bank of New York.

Bangladesh Bank say it was hacked by the same North Koreans “who had already broken into the computer systems of Sony Pictures Entertainment.”

Read more on Courthouse News.

Jan 312019
 

Saikat Das reports:

State Bank of India, the country’s biggest lender, said that the data of its customers are safe and that it is continuing to probe the systems for a potential breach of security after a Techcrunch report on data compromise at the bank.

“Basis our initial probe, we hereby confirm that SBI’s data continue to remain secure and all profiles and financial records of our customers are safe,” a bank spokesperson said in a note.

Read more on Economic Times.

Jan 312019
 

AP reports:

Aetna will pay $935,000 after one of its vendors sent letters to California patients that revealed via a window on the envelopes that the recipients were taking HIV-related medications, officials said Wednesday.

The settlement resolves allegations that Aetna violated state health privacy laws, California Attorney General Xavier Becerra said.

Nearly 2,000 Californians — and 12,000 people nationwide — received the revealing letters in 2017.

Read more on CBS.