Three charged for largest-ever bank data breach

Nov 10, 2015 3:34 PM by CBS News

NEW YORK - Federal authorities in New York City say three people have been charged in the largest theft of consumer data from a U.S. financial institution in history.

Authorities say the probe resulted from a huge cyberattack against JPMorgan Chase, the nation's biggest bank by assets. They say there were also attacks against several other financial institutions, financial services corporations and financial news publishers. Federal prosecutors say the cyberthieves stole the personal information of more than 100 million customers of the companies.

An indictment unsealed Tuesday in Manhattan federal court says the computer hacking crimes were carried out from 2012 to the middle of this past summer.

Officials say the group used the information to target individuals for various fraudulent stock selling schemes, which is how they made money. They operated out of Israel, Russia, and the U.S. The group also is accused of operating illegal gambling schemes from 2001-2015. They hacked other gambling businesses to steal customer information and shut down those sites.

Additionally, at least one of the defendants also ran an unlawful bitcoin exchange.

U.S. Attorney Preet Bharara plans to discuss more about the case at a news conference.

CBS News' Paula Reid reports two of the defendants, Gery Shalon and Ziv Orenstein, were arrested in Israel and are awaiting extradition. The other defendant, Joshua Samuel Aaron, is still at large and believed to be in Eastern Europe.

In addition to the cyberattack on JPMorgan, other companies have come forward and admitted they were targeted by the group. Scottrade and Dow Jones have both stated recently they were among the victims of the group.


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