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Millions Stolen in E*TRADE and Scottrade Hack
ATLANTA, Georgia – In a brazen scheme, three individuals hacked into the computer networks of E*TRADE Financial Services Corporation and Scottrade Financial Services, Inc. to steal sensitive personal identifying information from millions of customers.
The indictment alleges that Gery Shalon, a/k/a/ Garri Shalelashvili, Joshua Samuel Aaron, and an unidentified third hacker conspired to hack into the computer networks of financial institutions and media companies to steal customer data between November 2012 and August 2014.
The indictment alleges that Shalon directed the hacker to breach companies with large customer databases of investors, including E*TRADE and Scottrade, and the hacker infiltrated their networks using sophisticated hacking techniques.
According to the indictment, the hacker breached Scottrade’s network and E*TRADE’s network using overseas servers provided by Shalon in late November 2013 and early December 2013. After gaining a foothold in both networks, the hacker asked Shalon for the login credentials of a customer account at both companies in order to locate their customer databases.
The indictment alleges that, using the victim’s login credentials, the hacker located E*TRADE’s and Scottrade’s customer databases. Shalon and the hacker discussed the personal identifying information visible in the databases, and at Shalon’s direction, the hacker exported stolen customer data, including names, residential addresses, phone numbers, and email addresses, to an overseas server provided by Shalon.
In total, the defendants compromised customer databases containing the personal information of more than 10 million customers of E*TRADE and Scottrade alone.
A federal grand jury in Atlanta, Ga., returned a 10-count sealed indictment against Shalon, Aaron, and the third hacker on October 27, 2015. The indictment charges them with one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit computer fraud, two counts of computer fraud, and three counts of identity theft. The outcome of this case is currently pending.
Key Facts
- State: Georgia
- Category: Cybercrime
- Source: DOJ Press Release â†â€â€
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