A Hacker Is Indicted In Computer Fraud Case

Kevin D. Mitnick, the fugitive computer hacker who was captured by Federal authorities on Feb. 15, was indicted Thursday on 23 counts of fraud involving computer-access devices.

The indictments, filed in Federal District Court in Greenville, N.C., some 85 miles from here, charged Mr. Mitnick with one count of possessing device-making equipment, one count of possessing unauthorized access devices and 21 counts of using a counterfeited access device.

The indictment charges that Mr. Minick, 31, electronically broke into computer systems from Feb. 4, when he leased an apartment in Raleigh, until his arrest. "This just looks at several days before his arrest in Raleigh," John Bowler, an assistant United States attorney, said.

Mr. Bowler declined to discuss whether Mr. Mitnick could face additional charges, but said that an investigation was continuing.

Investigators say Mr. Mitnick possessed and used illegal equipment that allowed him to make a cellular telephone work as someone else's phone. Prosecutors said he commandeered a cellular-compatible modem to gain access to computer systems, where he stole information worth more than $1 million, including some 20,000 credit card numbers, although he apparently did not use the card numbers for financial gain.

Because he may face Federal charges elsewhere in the country, it is uncertain whether Mr. Mitnick will be tried in Raleigh, Mr. Bowler said. Mr. Mitnick is also wanted by state and Federal authorities for a parole violation in California and could face charges in other states.

He is being held in Federal custody in eastern North Carolina. Officials would not give the exact site, saying that disclosing it would jeopardize security.

His court-appointed lawyer, John A. Dusenbury, could not be reached for comment today.

Mr. Mitnick first became known for his computer skills as a teen-ager when he electronically broke into a computer of the North American Air Defense Command.

In 1989, he was convicted in Federal court of stealing software worth $1 million and doing damage estimated at $4 million to the Digital Equipment Corporation. He served one year in prison and was on probation when he disappeared in 1992, remaining on the run from Federal authorities until his arrest about a month ago.

Source:TheNewYorkTimes, http://www.nytimes.com/1995/03/11/business/a-hacker-is-indicted-in-computer-fraud-case.html

Comment:
In my opinion, Mr.Mitnick will be charged by Computer Fraud and Abuse Act 1986 under 18 U.S.C. S 1030(a)(2): Computer trespassing, and taking government, financial, or commerce info due to the stole of $1 million worth information and 20,000 credit card numbers. The problem is Mr.Mitnick face Federal charges elsewhere in the country. There is a possibility that Mr.Mitnick in various state courts but it’s very time consuming and costly. The development of technology is very fast and these legal protections as cyber law are inadequate and unable to compete with these growths which happened all over the world. The existence of hacker always challenging the security of internet and I believe that cyber law is not enough to prevent the cyber crime activities but it can become a tool to minimize cyber crime cases and protect internet user interests.

RM1mil Lost to Online Lover

KUALA LUMPUR: An insurance broker received a rude shock when she lost more than RM 1mil in an Internet scam.

The woman, identified only as Lim, 47, gave RM 1,021,000 in total to Kevin Axcel Brown @ Joe, whom she "met" in an online matchmaking site in September.

Joe claimed he was a 48-year-old Canadian chemical engineer with Petronas in Terengganu and had used different telephone numbers to communicate.

MCA's Public Services and Complaints Department head Datuk Micheal Chong said most cases of Internet fraud involved promises of joint business ventures and marriage.

"There have been 13 cases of Internet fraud this year and nine of the victims were female.

"None of them had seen their scammers' faces and yet could fall in love with them," Chong added.

Joe had asked Lim for a RM 1mil loan last October to settle his financial troubles and she deposited it intro three different bank accounts registered under the name of Zanariah.

He then said he was abroad, but asked her to meet him at KLIA on Dec 7.

She waited for four hours in vain.

She had also transferred an extra US$ 7,000 (RM 21,000) for Joe's travel expenses.

Besides her savings, Lim had also borrowed from friends, family and financial organizations to raise the RM 1mil.

Chong advised the public to be more careful as scammers had developed new tactics to con their victims.

"They show fake approval letters and even tap into an organization's phone number," he said, showing two "supportletters" Joe used to convince Lim.

The case comes after reports of a new telephone scam demanding victims to give "donations" allegedly for Barisan Nasional 's election fund.

The "Bukit Aman police scam" began three weeks ago with victims receiving phone calls from a number registered under the Bukit Aman Police Headquarters.

A "Datuk Halim" from the Commercial Crime desk would inform victims of a money laundering charge against them and ask them to deposit money in an account for the election fund.

Three near-victims approached Chong, who said there had been at least eight similar cases this year.

"They claimed to be acting on the Prime Minister's orders and asked between RM 3,000 and RM 5,000 from each victim," Chong said.

Telephone scam losses amounted to more than RM 1.5mil this year, while Internet fraud losses stand at RM 1.8mil.

Source: TheStar, http://thestar.com.my/news/story.asp?file=/2011/12/10/nation/10070014&sec=nation

Comment:

This case raise people concern about the safety of using social network because it provides an alternative platform for fraudsters to conduct illegal activities by using fake identity or information. Refer to this case, fraudsters will seek for target victims via social network and they will try to find the chance to chat with those girls by showing their loves and cares. At the end, the fraudster will disappear once they get the money from victims. This is a serious issue because the victims consist of who are educated and having professional background, likes teachers, engineers, entrepreneurs and etc. It's showed that public awareness with the safety of using internet is still very low. I hope that this case could become a good reference and raising public concern with the safety of social network due to risk of cheat by fraudsters who using fake personality information.