18 October 2017
Find out more

Disgruntled UBS IT worker accused of unleashing 'logic bomb'

08 June 2006  |  11736 views  |  0 dodgy man

A US court has heard how a former IT worker for UBS allegedly unleashed a 'logic bomb' computer virus on the bank's network because he was unhappy with his bonus payment.

But not only has Roger Duronio, 60, of New Jersey been charged with using the logic bomb to cause more than $3 million in damage to the computer network at UBS's stockbroking unit Paine Webber, he has also been charged with securities fraud for his failed plan to drive down the company's stock with activation of the logic bomb.

Duronio was employed as a systems administrator in UBS Paine Webber in New Jersey where he was paid a salary of $125,000. The court heard that he had been expecting a bonus of $50,000, but when he only received $32,000 Duronio decided to take revenge on the bank and began constructing the logic bomb computer program.

Duronio resigned from the company on 22 February 2002 and on March 4 2002 his program activated and began deleting files on over 1000 of UBS PaineWebber's computers. Around 17,000 UBS traders across the US were unable to trade shares for more than a day because of the damage.

But furthermore, in the month before the logic bomb went off, Duronio spent more than $21,000 on 318 put option contracts, so if UBS shares fell in value following the network failure, Duronio would make a profit.

Duronio is charged with securities fraud, which carries a maximum penalty of 10 years and a $1 million fine, and computer fraud which carries a maximum prison sentence of 10 years and a fine of $250,000, or two times the gain made by the defendant or the loss suffered by the victim.

Commenting on the case, US Attorney Christopher Christie says cybercrime against financial institutions is a 'significant' issue: "Although the damage was contained in this case, the potential for catastrophic damage in other cases is always there. We will prosecute cyber criminals and put them in prison."

Earlier this week, UBS attempted to have the case heard in secret, arguing it could expose details of the company's IT systems, but the request was rejected by Judge Joseph Greenaway.

The case is expected to last three weeks.

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

Call centre worker in the dock over £400,000 card scam

Call centre worker in the dock over £400,000 card scam

09 March 2006  |  10280 views  |  0 comments
UBS signs for Reuters mobile market data system

UBS signs for Reuters mobile market data system

31 October 2005  |  9457 views  |  0 comments
Data security chief arrested for account hacking

Data security chief arrested for account hacking

19 August 2005  |  11613 views  |  0 comments
US bank workers charged with selling customer data

US bank workers charged with selling customer data

17 May 2005  |  10934 views  |  0 comments | 1 tweets

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15338 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8518 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8056 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7582 views comments | 13 tweets | 9 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6730 views comments | 8 tweets | 16 linkedin

Featured job

A minimum of £200K (not a limiting factor)

Find your next job