Bloomberg computers hacked

[InfoSec News <isn () C4I ORG>]

http://www.msnbc.com/news/446078.asp

Kazakhstan men arrested in Bloomberg extortion plot

REUTERS

NEW YORK, (Aug. 14th, 2000)  Two Kazakhstan men have been arrested in
London for allegedly breaking into Bloomberg L.P.s Manhattan computer
system in an attempt to extort $200,000 from the business news service
and its owner, Michael Bloomberg.

The Manhattan U.S. attorneys office said that Oleg Zezov, who is
employed by Kazkommerts Securities in Almaty, Kazakhstan, and Igor
Yarimaka were arrested last Thursday on two extortion related counts
and one count of computer intrusion. The two separate complaints
against the men were unsealed on Monday in Manhattan federal court.

According to the complaints, Michael Bloomberg was part of a sting
operation at a London hotel during which the defendants were arrested.
They are currently being held in Britain and the United States is
seeking their extradition.

If convicted of all charges, they face a possible maximum sentence of
23 years in prison.

Zezov allegedly entered Bloombergs system through computers in Almaty.
In the spring of 1999 Bloomberg provided database services, via a
system known as Open Bloomberg, to Kazkommerts Securities. Zezov is
one of four individuals at Kazkommerts associated with Kazkommerts
contract with Bloomberg.

Criminals believe they can intimidate companies with threats of
computer hacking and/or the spreading of malicious accusations,
Bloomberg said in a statement. This global operation shows that
private industry can stand up for its property rights and does not
have to submit to such blackmail.

The complaint against Zezov allege that he sent a number of e-mails to
Michael Bloomberg demanding that Bloomberg pay him $200,000 in
exchange for revealing information about how he infiltrated the
companys computer system. One of the e-mail addresses Zezov used to
contact Bloomberg was bloomberg-mike () hotmail com.

On March 27, a Bloomberg representative contacted the FBI and said
that Michael Bloomberg had received e-mail from an individual using
the bloomberg-mike () hotmail com address and identifying himself in the
text of the letter as Alex. Prosecutors alleged that Zezov was the
author of the e-mail.

In the e-mail, Zezov allegedly said he was not a criminal but intended
to help you understand some drawbacks of your system. Among these was
that Bloomberg Traveller, a smaller, more portable version of a
Bloomberg terminal, had security problems.

The same day, Bloomberg received a multi-page fax that consisted of a
printout of Bloomberg computer screens containing personal information
about Michael Bloomberg, including his employee identification
photograph, his computer username and password at Bloomberg and credit
card numbers.

Bloomberg officials told the FBI that his information is only
accessible to certain authorised persons and is not among data
available to Bloomberg clients.

At the direction of the FBI, Michael Bloomberg replied to the
bloomberg-mike () hotmail com address stating he was interested in the
information and asking how to arrange for payment.

In an April 3 e-mail, Zezov allegedly demanded $200,000 and Bloomberg
responded that they should meet in person.

Zezov then allegedly demanded that Bloomberg deposit the money in an
offshore account. Bloomberg, at the FBIs direction, opened an account
in Deutsche Bank in London and deposited the sum. While Zezov was able
to confirm that the account had been opened, he could not withdraw any
funds.

Zezov said he wanted control over the account and Bloomberg then
suggested they resolve the matter in a face-to-face meeting in London.
Zezov and Yarimaka flew from Kazakhstan to London and met with
Bloomberg on Aug. 10 at the Hilton Hotel. Bloomberg was accompanied by
two London police officers, one posing as a Bloomberg executive and
the other serving as translator.

Zezov introduced himself as Alex and Yarimaka said he was a former
Kazakhstan prosecutor representing Alex in the payment matter. The
defendants allegedly reiterated their demands at the meeting and were
arrested.

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