29 June 2017
visit www.finastra.com

Charles Schwab account hacker jailed

12 April 2010  |  5857 views  |  0 anonymous figure in front of stock exchange

A man has been sentenced to 37 months in jail by a New York court for hacking into the online brokerage accounts of Charles Schwab customers and stealing around $246,000.

Between September 2006 and December 2007 Aleksey Volynskiy was part of a gang that used trojan horses to hack personal computers and steal login details from victims accessing their bank and brokerage accounts online.

According to the FBI, the operation was carried out from Russia by Alexander Bobnev, who is still at large. Once the information has been stolen, Bobnev and others accessed the accounts and made unauthorised sales of securities and wire transfers.

Operating in the US, Volynskiy and co-conspirators, set up "drop" accounts to receive the stolen funds. He then kept some of the money and sent the rest back to gang members in Russia through remittance services.

Volynskiy was also involved in a scam to use stolen credit card numbers to create fake cards and withdraw money from ATMs. The crook handed over 180 stolen credit card numbers to a cooperating witness, says the FBI.

Volynskiy was arrested in December 2008 and pleaded guilty last August to five counts, including conspiracy to commit wire fraud, and unlawfully access and damage a protected computer, money laundering and access device fraud.

He is the second man to be sentenced in relation to the scam following the jailing of Alexey Mineev in November.
KeywordsLEGAL

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Iceman gets 13 years for massive card data theft

Iceman gets 13 years for massive card data theft

15 February 2010  |  8092 views  |  0 comments
Gang jailed for Trojan bank theft scam

Gang jailed for Trojan bank theft scam

16 November 2009  |  10686 views  |  0 comments
Schwab cashes in on E*Trade turmoil

Schwab cashes in on E*Trade turmoil

18 December 2007  |  5961 views  |  0 comments
TD Ameritrade reports database breach

TD Ameritrade reports database breach

14 September 2007  |  9087 views  |  0 comments
Charles Schwab fined $1m for failing to protect client accounts

Charles Schwab fined $1m for failing to protect client accounts

16 November 2005  |  5011 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit www.events.sap.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9368 views comments | 19 tweets | 38 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
9019 views comments | 10 tweets | 6 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7748 views 0 | 8 tweets | 7 linkedin
Mastercard eyes opportunities to profit from sharing economyMastercard eyes opportunities to profit fr...
7449 views comments | 6 tweets | 6 linkedin
Body blow for PayKey as Apple orders Westpac off its turfBody blow for PayKey as Apple orders Westp...
7072 views comments | 12 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job