Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

1/31/2014
03:15 PM
Dark Reading
Dark Reading
Products and Releases
50%
50%

Russian National Sentenced To 30 Months In Prison For $1 Million Trading Account Hack, Securities Fraud Scheme

Petr Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab, and others

NEWARK, N.J. – A Russian national living in New York was sentenced today to 30 months in prison for conspiring with others to hack into retail brokerage accounts and execute sham trades, New Jersey U.S. Attorney Paul J. Fishman announced.

Petr Murmylyuk, 33, of Brooklyn, N.Y., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiracy to commit securities fraud. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in the case and statements made in court:

Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as "Profit Accounts" – at other brokerage houses. They then caused the victims' accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims' accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims' accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.

The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn. The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.

In addition to the prison term, Judge Salas sentenced Murmylyuk to serve three years of supervised release and ordered him to pay $505,357.79 in restitution.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Toni M. Weirauch, with the investigation leading to today's sentencing. He also thanked the U.S. Securities and Exchange Commission's Philadelphia Regional Office, under the leadership of its Regional Director Daniel M. Hawke, and the Justice Department's Computer Crime and Intellectual Property Section for their assistance in the investigation, as well as the Manhattan District Attorney's Office, under the direction of District Attorney Cyrus R. Vance Jr., for its contributions and cooperation in coordinating parallel investigations.

The government is represented by Assistant U.S. Attorney Christopher J. Kelly, Chief of the Economic Crimes Unit in Newark.

This prosecution is part of efforts underway by President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Commentary
How SolarWinds Busted Up Our Assumptions About Code Signing
Dr. Jethro Beekman, Technical Director,  3/3/2021
News
'ObliqueRAT' Now Hides Behind Images on Compromised Websites
Jai Vijayan, Contributing Writer,  3/2/2021
News
Attackers Turn Struggling Software Projects Into Trojan Horses
Robert Lemos, Contributing Writer,  2/26/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-5148
PUBLISHED: 2021-03-05
SonicWall SSO-agent default configuration uses NetAPI to probe the associated IP's in the network, this client probing method allows a potential attacker to capture the password hash of the privileged user and potentially forces the SSO Agent to authenticate allowing an attacker to bypass firewall a...
CVE-2020-36255
PUBLISHED: 2021-03-05
An issue was discovered in IdentityModel (aka ScottBrady.IdentityModel) before 1.3.0. The Branca implementation allows an attacker to modify and forge authentication tokens.
CVE-2019-18351
PUBLISHED: 2021-03-05
An issue was discovered in channels/chan_sip.c in Sangoma Asterisk through 13.29.1, through 16.6.1, and through 17.0.0; and Certified Asterisk through 13.21-cert4. A SIP request can be sent to Asterisk that can change a SIP peer's IP address. A REGISTER does not need to occur, and calls can be hijac...
CVE-2021-27963
PUBLISHED: 2021-03-05
SonLogger before 6.4.1 is affected by user creation with any user permissions profile (e.g., SuperAdmin). An anonymous user can send a POST request to /User/saveUser without any authentication or session header.
CVE-2021-27964
PUBLISHED: 2021-03-05
SonLogger before 6.4.1 is affected by Unauthenticated Arbitrary File Upload. An attacker can send a POST request to /Config/SaveUploadedHotspotLogoFile without any authentication or session header. There is no check for the file extension or content of the uploaded file.