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FBI Arrests 14 Alleged Hackers For PayPal Cyberattack

Fbi Hackers Paypal

By PETE YOST   07/19/11 10:30 PM ET   AP

WASHINGTON -- Fourteen people were arrested Tuesday for allegedly mounting a cyberattack on the website of PayPal in retaliation for its suspending the accounts of WikiLeaks.

Separately, FBI agents executed more than 35 search warrants around the country in an ongoing investigation into coordinated cyberattacks against major companies and organizations.

As part of the effort, there were two arrests in the United States unrelated to the attack on the PayPal payment service. Overseas, one person was arrested by Scotland Yard in Britain, and there were four arrests by the Dutch National Police Agency, all for alleged cybercrimes.

In one case unrelated to PayPal and filed in New Jersey, a customer support contractor was charged with stealing confidential business information on AT&T's servers. The data was posted on a public file sharing site, and defendant Lance Moore, 21, of Las Cruces, N.M., was accused of exceeding his authorized access to AT&T's servers in downloading thousands of documents and applications.

According to court papers, the documents the contractor uploaded were the same ones publicized last month by the computer hacking group Lulz Security, or LulzSec, which said it had obtained confidential AT&T documents and made them publicly available on the Internet.

The 16-year-old detained in England is thought to be connected to LulzSec, according to a U.K. official familiar with the investigation. The official spoke on condition that his position not be disclosed because he wasn't authorized to officially release the information.

A hacker with LulzSec did not immediately return a message seeking comment early Wednesday. The group's Twitter feed made no mention of any arrests, although "Sabu," a reputed member of the six-person collective, posted a message to the micro-blogging site saying the hackers couldn't confirm a report that one their own had been detained.

The cyberattacks on PayPal's website by the group called Anonymous followed the release by WikiLeaks in November of thousands of classified State Department cables.

Anonymous is a loosely organized group of hackers sympathetic to WikiLeaks. It has claimed responsibility for attacks against corporate and government websites worldwide.

The group also claims credit for disrupting the websites of Visa and MasterCard in December when the credit card companies stopped processing donations to WikiLeaks and its founder, Julian Assange.

A federal indictment unsealed in U.S. District Court in San Jose, Calif., says that Anonymous referred to the cyberattacks on PayPal as "Operation Avenge Assange."

The 14 charged in the PayPal attack were arrested in Alabama, Arizona, California, Colorado, the District of Columbia, Florida, Massachusetts, Nevada, New Mexico and Ohio. They ranged in age from 20 to 42. The name and age of one of the 14 was withheld by the court.

The 20-year-old, Mercedes Renee Haefer, is a university student, and her lawyer, Stanley L. Cohen of New York, compared the case to the federal prosecution of former U.S. defense analyst Daniel Ellsberg following his release in 1971 to The New York Times and other newspapers a Pentagon study of government decision-making about the Vietnam War. The government said Haefer is also known as "No" and "MMMM."

"In the 18th century, people stood on street corners handing out pamphlets saying, `Beware the all-powerful military and big government,'" Cohen told The Associated Press. "Some people listened. Some people walked away. Today, pamphleteers use the Internet."

Cohen compared the acts allegedly committed by his client and the others to civil disobedience. "The people being arrested are not being accused of acts of violence," Cohen said.

In addition to Haefer, the government said those indicted in San Jose were: Christopher Wayne Cooper, 23, also known as "Anthrophobic"; Joshua John Covelli, 26, aka "Absolem" and "Toxic"; Keith Wilson Downey, 26; Donald Husband, 29, aka "Ananon"; Vincent Charles Kershaw, 27, aka "Trivette," "Triv" and "Reaper"; Ethan Miles, 33; James C. Murphy, 36; Drew Alan Phillips, 26, aka "Drew010"; Jeffrey Puglisi, 28, aka "Jeffer," "Jefferp" and "Ji"; Daniel Sullivan, 22; Tracy Ann Valenzuela, 42; and Christopher Quang Vo, 22.

In the other non-PayPal case, Scott Matthew Arciszewski, 21, was arrested on charges of intentional damage to a protected computer. Arciszewski made his initial appearance Tuesday in federal court in Orlando, Fla.

According to the complaint, on June 21, 2011, Arciszewski allegedly accessed without authorization the Tampa Bay InfraGard website and uploaded three files, then tweeted about the intrusion and directed visitors to a separate website containing links with instructions on how to exploit the Tampa InfraGard website.

InfraGard is a public-private partnership for critical infrastructure protection sponsored by the FBI, with chapters in all 50 states.

LulzSec, a spin-off group of Anonymous, has taken responsibility for attacks on Fox News and PBS, entertainment companies, including Sony and Nintendo, as well as local chapters of InfraGard and Arizona law enforcement.

The hackers earlier this week broke into The Sun newspaper's website and posted a bogus story claiming that media tycoon Rupert Murdoch had been found dead.

The group still says it's sitting on a cache of emails stolen from a server belonging to Murdoch's British newspaper arm.

___

Associated Press writers Ken Ritter in Las Vegas and Raphael Satter in London contributed to this report.

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WASHINGTON -- Fourteen people were arrested Tuesday for allegedly mounting a cyberattack on the website of PayPal in retaliation for its suspending the accounts of WikiLeaks. Separately, FBI agents e...
WASHINGTON -- Fourteen people were arrested Tuesday for allegedly mounting a cyberattack on the website of PayPal in retaliation for its suspending the accounts of WikiLeaks. Separately, FBI agents e...
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HUFFPOST SUPER USER
Rodger leMonde
I call them as I see them.
02:48 PM on 07/21/2011
Moral and legal questions aside for the moment. If BigsterSales.com gets a forthright letter questioning the security of its sales process, will they improve their security? If on the other hand "BigsterSales information hacked and posted for all to see", is a headline in all the media, what will they do
HUFFPOST SUPER USER
handyallen1
bleeding heart
02:01 PM on 07/21/2011
no they dont. you work for ebay don't ya. your nothing but a shill for ebay a corporate paid shill
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BoFo
Like, you talkin' to me?
03:33 PM on 07/21/2011
What are you replying to?
10:08 AM on 07/21/2011
Throw their hides in prison and let them get hacked into in prison shower.
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greysells2
grey cells matter
07:46 AM on 07/21/2011
PayPal and other financial institutions, I believe, were asked by the US Government to help them "isolate" Assange and WikiLeaks by weakening them financially. When vigilante hackers tried to "level the playing field" by disrupting PayPal, the US government obligingly assisted PayPal, as their "thank you" for services rendered, by conducting an investigation against the alleged hackers. Other than questions about the legality of the US Government requests to the financial institutions, the reality remains that Pvt. Manning remains in custody awaiting trial after nearly 2 years and, apparrently, Manning has not been squeezed into turning "states evidence" on Assange on the potential conspiracy charge.
01:02 AM on 07/21/2011
And now Paypal is asking for Social Security numbers so they can report all transactions, money to your kids in college, money sent to your husband who is away on a business trip, etc,
AS INCOME. and Paypal is going to send a 1099 type form to the IRS and each person will have to disprove the income. Some timid people that dont want to argue with the IRS will go ahead and pay Income Tax on money that is already theirs and was taxed before.
This was brought about by Obama, an added to the Obama Health Care bill.
Congress needs to stop this right now.

What could go wrong with giving Paypal and ebay your Social Security number as well as all those that will use other's numbers that were stollen on the Internet?
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greysells2
grey cells matter
07:51 AM on 07/21/2011
I wouldn't do business with PayPal. Nor would I ever give out my Social Security number to a private company which I am doing business with. Reason = companies can get hacked and my SS number and other personal information acquired by hackers for illegal purposes.
HUFFPOST SUPER USER
handyallen1
bleeding heart
07:18 PM on 07/20/2011
i guess i am stupid , stupid to trust ebay, i used a seller who had over 700 positive feedback and got taken for over 4 grand , ya see ebay let this seller get away with letting someone else use her account and then sided with the seller because i wired the money to the seller whom i thought had 700 positive feedbacks now ebay won't give me any information on the seller which they have and i'm out 4 grand.. ebay even collected there fee on the 4 grand and i got nothing they are nothing but a bunch of crooks
HUFFPOST SUPER USER
joper201
Lifes tough, it's tougher when you're stupid. JW
01:26 AM on 07/21/2011
Ebay and Pay Pal tell you NEVER WIRE MONEY TO ANYONE.
Don't blame your foolishness on others.
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greysells2
grey cells matter
07:54 AM on 07/21/2011
Ya, they want you to send it through PayPal so they make the money.
HUFFPOST SUPER USER
handyallen1
bleeding heart
02:03 PM on 07/21/2011
ebay allowed this seller to loan her account to another that is crooked no if ands or buts period
05:54 PM on 07/20/2011
I agree with the assessment on http://www.boobytech.com/fbi-arrests-16-members-of-anonymous-across-us There are legal avenues to voice an opinion. Hacking is malicious and I'm against it. I stand with some of the things Anonymous stands for, but you don't see me going out there and stealing people's confidential information to prove a point.

Eh well, I heard Facebook hires ex-hackers for their technological insight. Seems like the line is blurry
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HUFFPOST SUPER USER
Calculator
Found guilty of Witchcraft, through Witch-hunt
05:25 PM on 07/20/2011
Why isn't the San Diego mansion story being posted?
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RevSpaminator
Life is too short to drink light beer!
05:04 PM on 07/20/2011
These people are all godless communists and fascist anarchists! We should suspend the constitution so we don't have to waste time with trials. It isn't like they can prove they are innocent anyway. Next we should arrest anyone who uses the internet for anything other than Facebook, shopping or watching online pr0n. This whole free speech and rights of the accused thing has been taken a bit too far anyway.

If you're gonna go conservative, go ULTRA-conservative! Vote Tory in 2012. God Save the Queen!
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HUFFPOST SUPER USER
Patricia Harlow
Small witty blurb about me!
04:59 PM on 07/20/2011
Anonymous is not the enemy...
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EllaMai
Non-violent complainer. From North of the border.
03:12 PM on 07/20/2011
Installing LOIC and letting it run is not the same thing as masterminding an attack. The FBI wanted to look like they were doing something, so they got themselves some scapegoats.

Your tax dollars at work!
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Eris23
Justice is in indefinite detention.
05:13 PM on 07/20/2011
Exactly. It's not even "hacking." None of the people running LOIC were in any position to break into a system and steal information that way. More BS hyperbole that will more likely get other hackers who aren't involved sympathetic to those being scapegoated. I've got nothing against the FBI doing their job, but it's a wasted effort this way. God forbid someone in the executive branch actually do something positive about the problems which Anonymous and others are fighting.
02:37 PM on 07/20/2011
i hope these as-holz go to prison for a long time
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Eris23
Justice is in indefinite detention.
01:24 PM on 07/20/2011
This was a poorly written article. Regardless, seems the FBI got more low hanging fruit to serve as scapegoats. The people running LOIC are in no way the true threats, nor will the over the top threats and treatment of them serve as a deterrent. Rather, it will serve as a rallying cry.
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HUFFPOST SUPER USER
Patricia Harlow
Small witty blurb about me!
05:02 PM on 07/20/2011
Yep, yep. Sacre the Sheep with mention of teh evil hackers. "They're coming for your infos, look out!"

Wake up America, know your enemy!
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HUFFPOST SUPER USER
allianceae
Tell the truth and short memory is no problem.
01:14 PM on 07/20/2011
Civil Disobedience??? Breaking into computer systems, planting files (malicious or not), and stealing data .............. Yikes, it's a real stretch to call that Civil D. I believe cyber crime and/or cyber terrorism is more appropriate. What ya'll think? These some dangerous geeks or what?
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Eris23
Justice is in indefinite detention.
05:15 PM on 07/20/2011
Cyber terrorism is a bogus term created by governments and security consultants to scare the public out of money. Cyber crime? Sure. Civil disobedience is always a violation of the law. It's a protest done through specifically breaking unjust laws.
12:55 PM on 07/20/2011
Congratulations to the FBI and Scotland Yard for these actions AND accomplishing them without any suspect being gunshot, maimed, beaten or tortured. Further - no FBI personel shot each other either. Police Departments all across the USA have much to learn in this regard.

Hackers - you are messing is a dangerous biz - long term incarceration without computer access is going to make you irrelevant upon release.
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Eris23
Justice is in indefinite detention.
01:25 PM on 07/20/2011
Running LOIC doesn't make one a hacker. It likely makes them a bit reckless and naive.
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EllaMai
Non-violent complainer. From North of the border.
03:15 PM on 07/20/2011
The ones who were caught are not the ones running the show.

They're the dumb ones who installed software without knowing what they were doing.

The FBI got some 13 year olds and some numbskulls. What a great way to spend your tax dollars!
04:37 PM on 07/20/2011
Let us hope they "roll over" on the others. Still a good use of my tax dollars.