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.

Risk

Hacker Gets Three Years For Hijacking Schwab Brokerage Accounts

Russian laundered more than $246,000, sending a portion back to Russia

A Russian national Wednesday was sentenced to 37 months in prison for hacking into victims' brokerage accounts at Charles Schwab, laundering more than $246,000 and sending a portion back to co-conspirators in Russia.

According to an FBI release, Aleksey Volynskiy also sold approximately 180 stolen credit card numbers to a cooperating witness and directed that they be fabricated into credit cards.

According to the indictment, from approximately September 2006 through December 2007 Volynskiy and co-defendant Alexander Bobnev participated in a scheme to steal funds from bank and brokerage accounts by hacking into those accounts through the Internet, using personal financial information obtained through computer viruses and then laundering the stolen proceeds.

To carry out this scheme, Bobnev and co-conspirators in Russia used Trojan horses to hack into the personal computers of multiple victims in the United States. These Trojan horses were designed to steal personal account information from individual victims as they accessed their bank and brokerage accounts through the Internet.

After the Trojan horses captured the victims' personal account information, Bobnev and other co-conspirators used the information to access victims' bank and brokerage accounts, and thereafter made unauthorized sales of securities and unauthorized wire transfers out of these accounts.

Volynskiy, along with co-conspirators residing in the United States, next set up various "drop" accounts to receive the funds stolen from their victims' bank and brokerage accounts. Then they sent a portion of the stolen funds from the various drop accounts in the United States to co-conspirators in Russia through money remitting services, keeping a portion of the fraud proceeds for themselves.

In addition to the scheme to hack into victims' brokerage accounts, Volynskiy participated in a scheme to steal funds from bank accounts by withdrawing money from those accounts at ATMs using stolen credit card numbers, the indictment says. On three separate occasions, Volynskiy provided a total of 180 stolen credit card numbers to a cooperating witness, directing that they be fabricated into credit cards.

Volynskiy was arrested on Dec. 4, 2008, and pleaded guilty on Aug. 4, 2009, to five counts, including conspiracy to commit wire fraud, unlawful access and damaging a protected computer, money laundering, and access device fraud. Bobnev remains at large.

Have a comment on this story? Please click "Discuss" below. If you'd like to contact Dark Reading's editors directly, send us a message.

Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Where Are the 'Great Exits' in the Data Security Market?
Dave Cole, Cofounder and CEO, Open Raven,  10/13/2020
Overcoming the Challenge of Shorter Certificate Lifespans
Mike Cooper, Founder & CEO of Revocent,  10/15/2020
US Counterintelligence Director & Fmr. Europol Leader Talk Election Security
Kelly Sheridan, Staff Editor, Dark Reading,  10/16/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
How IT Security Organizations are Attacking the Cybersecurity Problem
How IT Security Organizations are Attacking the Cybersecurity Problem
The COVID-19 pandemic turned the world -- and enterprise computing -- on end. Here's a look at how cybersecurity teams are retrenching their defense strategies, rebuilding their teams, and selecting new technologies to stop the oncoming rise of online attacks.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-4564
PUBLISHED: 2020-10-20
IBM Sterling B2B Integrator Standard Edition 5.2.0.0 through 6.0.3.1 and IBM Sterling File Gateway 2.2.0.0 through 6.0.3.1 are vulnerable to cross-site scripting. This vulnerability allows users to embed arbitrary JavaScript code in the Web UI thus altering the intended functionality potentially lea...
CVE-2020-4748
PUBLISHED: 2020-10-20
IBM Spectrum Scale 5.0.0 through 5.0.5.2 is vulnerable to cross-site scripting. This vulnerability allows users to embed arbitrary JavaScript code in the Web UI thus altering the intended functionality potentially leading to credentials disclosure within a trusted session. IBM X-Force ID: 188517.
CVE-2020-4749
PUBLISHED: 2020-10-20
IBM Spectrum Scale 5.0.0 through 5.0.5.2 does not set the secure attribute on authorization tokens or session cookies. Attackers may be able to get the cookie values by sending a http:// link to a user or by planting this link in a site the user goes to. The cookie will be sent to the insecure link ...
CVE-2020-4755
PUBLISHED: 2020-10-20
IBM Spectrum Scale 5.0.0 through 5.0.5.2 is vulnerable to cross-site scripting. This vulnerability allows users to embed arbitrary JavaScript code in the Web UI thus altering the intended functionality potentially leading to credentials disclosure within a trusted session. IBM X-Force ID: 188595.
CVE-2020-4756
PUBLISHED: 2020-10-20
IBM Spectrum Scale V4.2.0.0 through V4.2.3.23 and V5.0.0.0 through V5.0.5.2 as well as IBM Elastic Storage System 6.0.0 through 6.0.1.0 could allow a local attacker to invoke a subset of ioctls on the device with invalid arguments that could crash the keneral and cause a denial of service. IBM X-For...