JPMorgan Chase Probe Led To Largest Hacking Case Ever, Feds Say


Calling it the largest hacking case ever uncovered, federal prosecutors in New York City yesterday described a global, multiyear scheme to steal information on 100 million customers of a dozen companies in the U.S. and use the data to advance stock manipulation activities, illicit online gambling and fraud, the New York Times reports. Prosecutors said they uncovered the complex scheme in their investigation of a computer hacking at JPMorgan Chase that involved the breach of contact information, such as emails, from 83 million customer accounts.

Investigators uncovered a trail of 75 shell companies and a hacking scheme in which the three defendants used 30 false passports from 17 countries. The group's activity goes back as far as 2007, and it has reaped “hundreds of millions of dollars in illicit proceeds,” some of it hidden in Swiss accounts and other bank accounts, prosecutors said. The data breaches “were breathtaking in their scope and size,” said U.S. Attorney Preet Bharara. The crimes, described as a 21-century twist on tried-and-true criminal activity, unveiled the existence of “a brave new world of hacking for profit,” perhaps signaling the next frontier in securities fraud. The accused — two Israeli citizens and a U.S. citizen — face 23 counts of fraud and other illegal activities, according to an indictment unsealed yesterday.

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