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
News
FluBot Malware's Rapid Spread May Soon Hit US Phones
Kelly Sheridan, Staff Editor, Dark Reading,  4/28/2021
Slideshows
7 Modern-Day Cybersecurity Realities
Steve Zurier, Contributing Writer,  4/30/2021
Commentary
How to Secure Employees' Home Wi-Fi Networks
Bert Kashyap, CEO and Co-Founder at SecureW2,  4/28/2021
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-2021-31755
PUBLISHED: 2021-05-07
An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setmac allows attackers to execute arbitrary code on the system via a crafted post request.
CVE-2021-31756
PUBLISHED: 2021-05-07
An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /gofrom/setwanType allows attackers to execute arbitrary code on the system via a crafted post request. This occurs when input vector controlled by malicious attack get copie...
CVE-2021-31757
PUBLISHED: 2021-05-07
An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setVLAN allows attackers to execute arbitrary code on the system via a crafted post request.
CVE-2021-31758
PUBLISHED: 2021-05-07
An issue was discovered on Tenda AC11 devices with firmware through 02.03.01.104_CN. A stack buffer overflow vulnerability in /goform/setportList allows attackers to execute arbitrary code on the system via a crafted post request.
CVE-2021-31458
PUBLISHED: 2021-05-07
This vulnerability allows remote attackers to execute arbitrary code on affected installations of Foxit Reader 10.1.1.37576. User interaction is required to exploit this vulnerability in that the target must visit a malicious page or open a malicious file. The specific flaw exists within the handlin...