Establishing Digital Trust: Don't Sacrifice Security for Convenience
Petr Murmylyuk, 33, a Russian national living in New York, was recently sentenced to 30 months in prison for hacking into brokerage accounts and executing fraudulent trades.
Murmylyuk, who had previously pled guilty to conspiracy to commit securities fraud, was also sentenced to serve three years of supervised release and ordered to pay $505,357.79 in restitution.
According to court documents, Murmylyuk and others hacked into online accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms, then used that access to open additional accounts, referred to as "Profit Accounts," at other brokerage houses.
The victims' accounts were then used to make trades with the Profit Accounts that led to significant losses for the victims and gains for the hackers -- one version of the scheme involved causing victims' accounts to sell options contracts to the Profit Accounts, then purchasing the same contracts back minutes later for many times the price.https://o1.qnsr.com/log/p.gif?;n=203;c=204650394;s=9477;x=7936;f=201801171506010;u=j;z=TIMESTAMP;a=20392931;e=i
The combined losses to Scotttrade, E*Trade, Fidelity, Schwab and other brokerage firms were approximately $1 million.