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Albert Gonzalez, Massive Credit Card Hack, New Jersey 2009

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Major International Hacker Pleads Guilty for Massive Attack on U.S. Retail and Banking Networks

MIAMI, FL – Albert Gonzalez, 28, of Miami, pleaded guilty today to conspiring to hack into computer networks supporting major American retail and financial organizations, and to steal data relating to tens of millions of credit and debit cards.

Gonzalez, aka ‘segvec,’ ‘soupnazi’ and ‘j4guar17,’ pleaded guilty to two counts of conspiracy to gain unauthorized access to the payment card networks operated by, among others, Heartland Payment Systems, a New Jersey-based card processor; 7-Eleven, a Texas-based nationwide convenience store chain; and Hannaford Brothers Co. Inc., a Maine-based supermarket chain.

The plea was entered in federal court in Boston before U.S. District Court Judge Douglas P. Woodlock. The case is one of the largest data breaches ever investigated and prosecuted in the United States.

According to information contained in the plea agreement, Gonzalez leased or otherwise controlled several servers, or ‘hacking platforms,’ and gave access to these servers to other hackers, knowing that they would use them to store malicious software, or ‘malware,’ and launch attacks against corporate victims.

Based on the terms of the plea agreement, Gonzalez will not seek a prison term under 17 years and the government will not seek a prison term of more than 25 years. Gonzalez pleaded guilty in September 2009 in Boston to 19 counts of conspiracy, computer fraud, wire fraud, access device fraud and aggravated identity theft relating to hacks into numerous major U.S. retailers including TJX Companies, BJ’s Wholesale Club, OfficeMax, Boston Market, Barnes & Noble and Sports Authority.

As part of the plea agreement with the government, the New Jersey case was transferred to the District of Massachusetts for plea and sentencing. According to the terms of the New Jersey plea agreement, the parties agree that Gonzalez’ sentence in the New Jersey case should run concurrently with the sentence imposed in the Boston and New York cases.

Gonzalez remains in federal custody. Sentencing in the Boston and New York cases is currently scheduled for March 18, 2010, in Boston. Sentencing in the New Jersey case is scheduled for March 19, 2010.

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