Date
27 March 2017
The scheme compromised more than 160 million credit card numbers and caused more than US$300 million of losses. Photo: Consumer Affairs
The scheme compromised more than 160 million credit card numbers and caused more than US$300 million of losses. Photo: Consumer Affairs

Russian man pleads guilty in US over US$300 mln cyber heist

A Russian man pleaded guilty to involvement in what authorities called the largest computer hacking scheme ever prosecuted in the United States, compromising more than 160 million credit card numbers and causing more than US$300 million of losses.

Vladimir Drinkman, 34, admitted to conspiring to illegally access computers and conspiring to commit wire fraud before Chief Judge Jerome Simandle of the federal district court in Camden, New Jersey, Reuters reported, citing federal prosecutors.

Drinkman was accused of working with four other defendants as far back as 2003 to install “sniffers” designed to comb through and steal data from computer networks of financial companies, payment processors and retailers.

Prosecutors said the defendants then used an array of computers to store and ultimately sell data they collected.

Sixteen companies’ networks were infiltrated, including those of Nasdaq OMX Group Inc., 7-Eleven, France’s Carrefour SA, JC Penney Co., JetBlue Airways Corp., a Visa Inc. licensee, and Heartland Payment Systems Inc.

Drinkman, of Moscow and Syktyvkar, Russia, faces up to 30 years in prison on the wire fraud conspiracy count when he is sentenced on Jan. 15, 2016.

He may get a lesser term reflecting his “recognition and affirmative acceptance of personal responsibility,” according to his plea agreement. Nine other criminal charges were dismissed.

“Defendants like Vladimir Drinkman, who have the skills to break into our computer networks and the inclination to do so, pose a cutting edge threat to our economic well-being, our privacy and our national security,” lawyer Paul Fishman said in a statement.

Florian Miedel, a lawyer for Drinkman, did not immediately respond to requests for comment.

The defendant has been in US custody since his extradition from the Netherlands, where he was arrested in June 2012.

Another Russian man implicated in the scheme, Dmitriy Smilianets, 32, is also in US custody after pleading not guilty to all charges he faced in August 2013.

Still at large are Alexandr Kalinin, 28, of St. Petersburg, Russia; Roman Kotov, 34, of Moscow; and Mikhail Rytikov, 28, of Odessa, Ukraine.

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CG

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