Last year in 2015, one of, if not the biggest hacking scandals regarding a financial institution occurred and three men were indicted for it regarding JP Morgan and several other institutions.  The three men indicted are Gery Shalon, Joshua Samuel Aaron and Ziv Orenstein.  Two are Israeli citizens, the other American.  Orenstein is still on the lam, but what these three got away with is the stuff that movies are made from.

 

The cyber attack against JP Morgan was the case cracker for law enforcement because it opened the door to pin other massive crimes against the three that included stock manipulation, illegal gambling and more.  In total, prosecutors hit this unholy trio with 23 charges initially that covered everything from hacking to wire fraud.

 

The men reportedly stole over 80 million plus customer records from JPMorgan alone and sued the data to manipulate stock prices.  They held at least 12 illegal internet gambling casinos as well as laundered immense amounts of money through an ingenious network of shell corporations.

 

Shalon alone is reported to have scammed away over $100 million in various accounts around the world.

 

The JPMoran attack actually took place in 2014 and it wasn’t long for the long arm of the law to put the pinch on this trio.  The operations these men ran began in 2007 and involved everything from stock manipulation, gambling, and even bitcoin crimes.  Another defendant, Anthony Murgio got tangled up in this mess that shook the financial and cyber security world.

 

Not even the vaunted Wall Street Journal was able to avoid these men’s attacks.

 

The ramifications of these deeds is rapidly changing the way security is handled.  Cyber security experts are pouring over the data available to see how best to develop countermeasures against future incidents like these but only time will tell if they will bear fruit.

 

It also shows just how vulnerable these institutions were from the outset.  If big corporations like JPMorgan couldn’t defend themselves, how can the smaller companies have hop to remain inviolate?  What little secrets did the three men use that got them into the systems that others don’t know about?  Could their efforts be duplicated by others, and most of all, how did they get away with it for so long before being caught.

 

It’s probably a case of they did get caught along the way but paid off enough people to keep things quiet.  How far up the ladder those payoffs rose is going to be a job for the prosecutors.

 

Customers of the financial institutions had been notified but that doesn’t cover the discomfort that emerges from these types of incidents.  Cyber security experts the world over are now on the hotseat to prevent such breaches and law enforcement has to be more vigilant to ensure these kinds of thefts don’t occur again especially of this magnitude.

 

No one knows how many systems get compromised each day and with the expansion of new technologies like mobile, the challenge is to keep up with the hackers who will exploit anything they can get their hands on.