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Acxiom Hackers Face 144-count Federal Indictment ("The Biggest Cyber-Crime Ever Prosecuted")
arkansasbusiness.com ^ | July 21, 2004 | Gwen Moritz

Posted on 07/21/2004 4:17:29 PM PDT by HAL9000

Federal prosecutors on Wednesday announced a 144-count indictment against a Florida businessman for allegedly hacking personal information on millions of Americans from Acxiom Corp. databases over a 17-month period.

Prosecutors claimed that Scott Levine, 45, of Boca Raton, Fla.-based Snipermail.com Inc., accessed Acxiom databases between April 2002 and August 2003. Information accessed included names, addresses, e-mail addresses, customer demographics, and probably some birth dates and social security numbers.

“It may be the biggest cyber-crime ever prosecuted and investigated,” said assistant U.S. Attorney Sandra Cherry during a news conference at the U.S. Attorney’s Little Rock office.

It alleges 139 instances of illegal access to 8.2 gigabytes of data that were downloaded from Acxiom’s servers, causing Acxiom losses of at least $7 million.

There is no evidence at this point that credit card information had been obtained or that the information had been used in identity or consumer fraud, Cherry said.

Levine was charged with conspiracy, unauthorized access of a protected computer, access device fraud, money laundering and obstruction of justice, according to the indictment.

“Since the day we alerted them to the possibility of an intrusion into one of our servers, the diligence and professionalism of these members of law enforcement have been exemplary,” said Acxiom in a written statement issued Wednesday. “Acxiom takes the security of our systems very seriously, and we believe that those who unlawfully intrude on our systems should be dealt with by the criminal justice system.

“We are committed to safeguarding our systems and the data that we store and manage on behalf of our clients. Since evidence of this crime was uncovered and halted in the summer of 2003, Acxiom has made a strong security system even stronger.”

The company allegedly bundled the data with data of its own and sold it, according to the indictment. In June 2003 Snipermail allegedly sold data for $19,479 to broker Direct Partner Solutions of Alpharetta, Ga., which then provided the data to a company called ID Media for a postal campaign for a brand-name pharmaceutical.

Snipermail employees have cut deals and aided federal investigators, prosecutors said.

Also named in the indictment are Levine’s brother-in-law Magdiel Castro, longtime business associate Jeffrey Richman who operates Florida corporation RichMedia Inc., systems administrator Jeffrey Burstein, Melvin Donald Atkinson a computer analyst, Marcos Cavalcante a graphic designer, and William F. Clinton, a computer specialist.

The intrusions were detected during an internal Acxiom investigation of its databases, following revelations its consumer database server had been hacked by Daniel Baas of Ohio, prosecutors said. Baas, however, had no connection to Snipermail or Levine, prosecutors said.

(Fortune magazine has also reported that the investigation of Baas also turned up a three-month penetration of Acxiom's server by unrelated hackers operating in Boca Raton, Fla.)

Acxiom officials immediately notified the FBI and the U.S. Attorney’s office of the intrusion. The investigation revealed Snipermail employees accessed Acxiom’s FTP server at its Conway facility in April 2002 and Spring 2003 and regularly downloaded large data files through July 2003, according to the indictment.

The indictment claims the conspiracy can be traced back to November 2001.

The FTP server sends and receives files via the Internet. Acxiom and its client both place and receive information via the FTP server. The indictment claimed the conspirators decrypted Acxiom password files to access more data than they were supposed to have access to.

Snipermail had legitimate access to a portion of Acxiom’s database as a client, prosecutors said. Prosecutors declined how Snipermail allegedly found its way past Acxiom security measures to access other portions of the database.

The indictment said a file containing user names and encrypted passwords was downloaded beginning in May 2003.

Snipermail’s business involves providing lists to clients for direct e-mail marketing and distribution of online advertising. Levine induced new conspirators with offers of ownership in Snipermail, higher wages and continued employment, according to the indictment. It also allegedly promised some with assistance on visa and immigration issues.



TOPICS: Business/Economy; Front Page News; News/Current Events; Technical; US: Florida
KEYWORDS: acxiom; freemoney; government; hackers; neverforgot; snipermail; spam
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1 posted on 07/21/2004 4:17:33 PM PDT by HAL9000
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To: Weirdad; enotheisen; Quix; agitator; Ed_in_NJ; 1234; codyjacksmom; American_Centurion; ...
Paging the InfoSec pinglist...
Let me know if you want to be 1 or 0. (That's ON or OFF, for those who are not binary-compliant)





2 posted on 07/21/2004 4:28:26 PM PDT by adam_az (Call your State Republican Party office and VOLUNTEER!!!!)
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To: HAL9000
Also named in the indictment are ... William F. Clinton, a computer specialist.

Close - but no cigar.

3 posted on 07/21/2004 4:28:35 PM PDT by HAL9000
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To: Weirdad; enotheisen; Quix; agitator; Ed_in_NJ; 1234; codyjacksmom; American_Centurion; ...

To the InfoSec ping list:

I don't know where they get this is the idea that this is the "biggest" cyber crime ever prosecuted.

What metric is this based on? Not $, 7 million is small 'taters. Also, the article doesn't mention what the $7 million figure represents exactly.

Still, pretty interesting.


4 posted on 07/21/2004 4:31:06 PM PDT by adam_az (Call your State Republican Party office and VOLUNTEER!!!!)
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To: HAL9000

It is arkansas... you never know.

RichMedia... Marc Rich? ;)


5 posted on 07/21/2004 4:32:33 PM PDT by adam_az (Call your State Republican Party office and VOLUNTEER!!!!)
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To: HAL9000

Wasn't Wesley Clark on their payroll? Seems to me he was an Axciom lobbyist.


6 posted on 07/21/2004 5:33:08 PM PDT by Graymatter (Kerry medical records are none of our business---and his veep pick is, who???)
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bump


7 posted on 07/21/2004 6:05:27 PM PDT by Museum Twenty
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To: HAL9000
unauthorized access of a protected computer

This seems like yet another oxymoron.

(I know, legally protected, but it doesn't seem very protected if you can access it in an unauthorized way.)

8 posted on 07/21/2004 6:32:49 PM PDT by DeltaZulu
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To: DeltaZulu
it doesn't seem very protected if you can access it in an unauthorized way.

Running Windows? Something tells me you haven't run a deep scan of your own computer before. If not, invest in a couple of rolls of Reyonlds Wrap before you do. It won't help your computer but it might keep the spyware from leaping into your head ...

Me? It cause me to switch operating systems for my home systems.

9 posted on 07/22/2004 5:32:07 AM PDT by LTCJ (Gridlock '05 - the Lesser of Three Evils.)
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To: adam_az

Yes, it is interesting, and yep, the headline does seem a bit overblown.

Thats happening a lot in the media these days....(grin)

Thanks for the ping.


10 posted on 07/22/2004 6:49:37 AM PDT by Badeye ("The day you stop learning, is the day you begin dying")
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To: HAL9000
Acxiom in a written statement issued Wednesday. “Acxiom takes the security of our systems very seriously, and we believe that those who unlawfully intrude on our systems should be dealt with by the criminal justice system.
...
The investigation revealed Snipermail employees accessed Acxiom’s FTP server at its Conway facility in April 2002 and Spring 2003 and regularly downloaded large data files through July 2003, according to the indictment.
...
The indictment claimed the conspirators decrypted Acxiom password files to access more data than they were supposed to have access to.


I can't see how a company can say that they "take security seriously" and then have their information on a publically available FTP server, whose files are "protected" with a simple to crack password system.

Not that I condone these theives, but its like a businessman putting a big lock on the front door, only to leave the back door open.

It also allegedly promised some with assistance on visa and immigration issues.

Oh now its getting interesting. Please keep me posted if you hear of anything else.
11 posted on 08/15/2004 12:30:37 PM PDT by lelio
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To: lelio

The suspect was arraigned a few days ago and entered a not guilty plea.


12 posted on 08/15/2004 2:07:23 PM PDT by HAL9000
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To: HAL9000

bttt


13 posted on 03/28/2005 10:36:07 PM PST by timestax
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To: HAL9000
Prosecutors claimed that Scott Levine, 45, of Boca Raton, Fla.-based Snipermail.com Inc., accessed Acxiom databases between April 2002 and August 2003. Information accessed included names, addresses, e-mail addresses, customer demographics, and probably some birth dates and social security numbers. “It may be the biggest cyber-crime ever prosecuted and investigated,” said assistant

who is this Scott Levine, 45, of Boca Raton?! eh

14 posted on 03/28/2005 10:55:00 PM PST by timestax
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To: timestax
S C O T T L E V I N ......WHO IS HE...why no news about him....something fishy going on!
15 posted on 03/28/2005 11:01:35 PM PST by timestax
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To: timestax

bump for truth


16 posted on 03/28/2005 11:16:19 PM PST by timestax
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To: timestax

.


17 posted on 03/28/2005 11:20:02 PM PST by timestax
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To: timestax

bump


18 posted on 03/29/2005 9:33:43 AM PST by timestax
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To: adam_az

Boca Raton, isn't that where George's (Seinfeld) parents retired?


19 posted on 03/29/2005 9:36:04 AM PST by Slip18
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To: adam_az

Please add me to this ping list, thank you.


20 posted on 03/29/2005 9:39:54 AM PST by TXBSAFH (Never underestimate the power of human stupidity--Robert Heinlein)
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