Mystery Fingers on Keyboard in JPMorgan Hack

A key figure is missing in the court documents outlining the biggest computer attack ever of the US financial system: the actual hacker.

The Israeli mastermind of the crime syndicate with global operations -- computer servers in Egypt, online casinos in Ukraine and Hungary, Azerbaijan payment processors and a Florida bitcoin exchange -- created a digital mob without a true home country, according to prosecutors. So when the gang needed a hired gun, in this case a sophisticated computer thief, it apparently turned to a harbor known for some of the best.

The hacker, identified only as co-conspirator 1 in a sweeping indictment unsealed recently, is actually a Russian master of digital break-ins known to federal agents and US spy agencies who have tracked him for years, according to three people familiar with the investigation. Another indictment unsealed this week about the gang provides a little more, citing “a computer hacker who is believed to have resided in Russia” -- one who infiltrated computer networks, located customer databases and exported the profile information to computers overseas.

It is not unusual for prosecutors to withhold names in a continuing investigation. But talks about whether to publicly identify the hacker in this case and whether to indict him reached the upper rungs of government. The prospect was the subject of various discussions at one point by officials of the National Security Agency and the White House, according to one person familiar with the matter, who said it was part of a larger debate within the Administration over how best to confront Russia over hacking amid strained US relations.

Weighing Options
"I think the government’s weighing its options at this point," said Leo Taddeo, a former special agent in charge of the Federal Bureau of Investigation’s cyber division in New York who supervised the case before he left in August and who declined to discuss its specifics. Sometimes, the names of co-conspirators are withheld in hopes they won’t go into hiding and will be easier to apprehend, said Taddeo, now chief security officer of cybersecurity company Cryptzone Inc. in Waltham, Massachusetts.

That is less of a concern in this hacking case, since the arrest and indictment of other suspects, along with the seizure of e-mails and other communications, have already alerted the hacker that US authorities are on his trail. The FBI declined to comment on the investigation, as did the White House National Security Council. The NSA didn’t respond to requests for comment. The Justice Department, which makes decisions on criminal actions independent of the executive branch, also declined to comment.

The FBI’s assessment that the financial hack and related events were purely a criminal caper, not the act of an unfriendly government, has largely been borne out by the investigation.

Still, American intelligence agencies have produced information suggesting co-conspirator 1 may enjoy the protection of the FSB, Russia’s main intelligence agency, two people briefed on the matter said. The information is not all consistent. Some intelligence suggests merely that the FSB tried to recruit the hacker, while other information indicates he may have had a more active role in FSB-directed operations, they said.

The hacker’s profile helped feed differences of opinion early on about the attacks of some of Wall Street’s biggest names. For months after the disclosure of a big systems breach last summer, JPMorgan Chase & Co. officials maintained the attack on the bank should be treated as a national security incident.

Going Undetected
Co-conspirator 1’s shadowy talents are on display throughout the two indictments, one in federal court in New York and the other in Atlanta. He appears to infiltrate some American financial institutions with ease, operating undetected inside their heavily secured computer banks for months or years.

Targeted companies included Fidelity Investments, E*Trade Financial Corp., Scottrade Financial Services Inc., Dow Jones & Co., as well as JPMorgan Chase, which alone spends more than half a billion dollars annually to secure its computers. Fidelity is the one company in this group that has said it has no indication any customer information was taken from its network.
Some of the targets were chosen by Gery Shalon, the Israeli who was the mastermind of the criminal organization spanning bitcoin companies, Internet gambling sites and securities manipulation before his arrest last summer, according to the criminal indictments.

Specialists say co-conspirator 1 may have done more than what Shalon ordered and point out that he remained in the computers of some companies for years, even though e-mail addresses and such can be spirited away quickly.
For example, when disclosing that some customer payment information may have been compromised in October, Dow Jones said that the unauthorized access to its systems occurred at certain times over three years.

Dead End
Data stolen from the targets might also have been shared with others in Russia, if that is where the hacker is working, for his own protection, said Tom Kellermann, chief cybersecurity officer for Trend Micro Inc. "This is not over," Kellermann said. "The real question now is how many backdoors are still in these systems that have yet to be detected."
US authorities almost always hit a dead end, Taddeo said, when an investigation leads to Russia.

With Shalon and some other suspects in custody, however, prosecutors may be able to plumb the inner workings of Russia’s elite cyber underground. At least two of Shalon’s alleged associates, Joshua Aaron and bitcoin operator Anthony Murgio, traveled extensively to Russia and could have met the hacker in person.

The two people familiar with the case said it is unclear if prosecutors are still considering charges against co-conspirator 1 for hacking and related crimes. He could be indicted even though Russia does not extradite its citizens to the West. 

President Barack Obama could also use new executive powers to seize assets and impose other sanctions on foreign nationals involved in cybercrime, measures the White House has yet to tap despite a run of high-profile hacks on companies and agencies.

Information-Management

 

« State-sponsored Cyberspies
Cyber War and Real War Coincide In Ukraine »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

BackupVault

BackupVault

BackupVault is a leading provider of completely automatic, fully encrypted online, cloud backup.

Resecurity, Inc.

Resecurity, Inc.

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

Clayden Law

Clayden Law

Clayden Law are experts in information technology, data privacy and cybersecurity law.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

Irish Reporting & Information Security Service (IRISS)

Irish Reporting & Information Security Service (IRISS)

IRISS-CERT is Ireland's first CSIRT (Computer Security Incident Response Team) to provide services to all users within Ireland.

Orolia

Orolia

Orolia are experts in deploying high precision GPS time through network infrastructure to synchronize critical operations.

Talend

Talend

Talend is a leader in cloud and big data integration software. Applications include Risk and Compliance management.

Arista Networks

Arista Networks

Arista Networks was founded to deliver software defined cloud networking solutions for large data centre and computing environments.

Arxan Technologies

Arxan Technologies

Arxan is a leader of application attack-prevention and self-protection products for Internet of Things (IoT), Mobile, Desktop, and other applications.

Nok Nok Labs

Nok Nok Labs

Nok Nok is a market leader in next generation authentication for cloud, mobile and IoT applications.

Wolfpack Information Risk

Wolfpack Information Risk

Wolfpack specialise in information and cyber threat management covering the full spectrum of prevention, detection, incident response and business resilience capabilities.

IBA Security

IBA Security

IBA Security is a center of competence consolidating the cybersecurity expertise of the IBA Group.

Dual Layer IT Solutions

Dual Layer IT Solutions

Dual Layer offer a full range of IT Services and Solutions for businesses from IT infrastructure design to cloud/hosted solutions, cybersecurity, disaster recovery and IT training.

Elemendar

Elemendar

Elemendar Artificial Intelligence reads cyber threat reports written by humans and translates them into industry-standard, machine-readable and machine-actionable data.

In-Sec-M

In-Sec-M

In-Sec-M is a non-profit organization that brings together companies, learning and research institutions, and government actors to increase competitiveness of the Canadian cybersecurity industry.

White Cloud Security

White Cloud Security

White Cloud is a cloud-based Application Trust-Listing security service that prevents unauthorized programs from running on your computers.

Swedish Incubators & Science Parks (SISP)

Swedish Incubators & Science Parks (SISP)

Swedish Incubators & Science Parks (SISP) is the Swedish industry association for Swedish incubators and science parks.

CySecK

CySecK

CySecK is a Centre of Excellence in Cybersecurity formed in 2017 by the Government of Karnataka, as part of the Technology Innovation Strategy.

Bluewave

Bluewave

Bluewave are a strategic IT advisory company that offers businesses a simple and comprehensive way to purchase information technology solutions.

Eventus TechSol

Eventus TechSol

Eventus, are a team of highly skilled professionals who are committed to deliver excellence in next generation cyber security services and customized solutions for your enterprise.