SCORPIONS CATCH CYBER CROOK IN THE ACT

Oh well done! One for the good guys!

Scorpions catch cyber crook in the act
Lee Rondganger
April 05 2007 at 06:34AM

The Scorpions have uncovered a multimillion-rand online bank-hacking syndicate after arresting its mastermind. On Tuesday, after striking a plea-bargain with the state, the 30-year-old Kempton Park man was sentenced to eight years in jail - five of which have been suspended. This was after he had confessed to a range of online fraud incidents amounting to millions of rands. He was convicted of fraud and money-laundering. The conviction came after a joint operation between the Scorpions and IT forensic investigators from Standard Bank.

'He continued to pillage numerous other online accounts'

Now, the Scorpions are closing in on other members of the syndicate and are hoping to make arrests soon. The syndicate is believed to be behind the spate of hacking attacks on online banking clients from all major banks.

The conviction comes after months of intensive investigations by the Scorpions, who finally nailed their man after an elaborate sting operation four weeks ago. The man, an IT expert who owns a R600 000 top-of-the-range Porsche, began his life of cyber crime in December 2005 when he was approached by members of a online fraud syndicate who gave him the account details of various online banking clients. His first successful hack was against an FNB client on December 24 2005. Using sophisticated software and hardware key loggers to glean people's sensitive login details, he was able to transfer R9,8-million from an individual's bank account into multiple accounts he had set up. After that successful attack, he continued to pillage numerous other online accounts. The syndicate was able to transfer its stolen money into numerous beneficiary accounts, known in the banking industry as host accounts. The latter are owned by mainly poor people whom the syndicate recruits as "e-mules".

After hacking into a person's bank account, the syndicate transfers money into the host account and the e-mules are paid a fee for allowing the syndicate to use the accounts. However, in December last year, the Scorpions and Standard Bank discovered that the hacker was trying to gain access to Standard Bank customer's accounts. A sting operation was then put in place. Using an informant, the Scorpions, with the help of Standard Bank, trailed the man to a restaurant in Rosebank on March 6. The informant was able - with the assistance of the bank - to give the man personal information of two Standard Bank customers. After following the man for several hours, he led investigators to the O R Tambo Airport, where he logged on to the accounts from an Internet hot spot at the domestic terminals.

With the information obtained from the informant, the man logged on to the accounts of the two Standard Bank customers. He then transferred three amounts from the accounts, two of R9 500 and another of R11 000. After transferring the money, he sent the Scorpions informant an SMS, saying: "U da best. Let's do the big one now." But, as the money went through to the e-mules' accounts and once the SMS had been sent, members of the Scorpions swooped on him.

He was caught red-handed with the Internet accounts still open. Gerrie Nel, head of the Scorpions in Gauteng, said it was the first time in the history of cyber crime that a hacker had been caught in the act.

This article was originally published on page 3 of The Mercury on April 05, 2007 SCORPIO