Virtual Event Now Live: Zero Trust Strategies Summit! - Login for Access
Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cybercrime

Man Sentenced to 30 Months for Hacking Scheme Targeting Brokerage Firms

A Russian national has been sentenced to 30 months in federal prison for conspiring with others to hack into a retail brokerage accounts and execute fake trades.

A Russian national has been sentenced to 30 months in federal prison for conspiring with others to hack into a retail brokerage accounts and execute fake trades.

Last year, Petr Murmylyuk, 33, of Brooklyn, N.Y., pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with conspiracy to commit securities fraud. He was first charged in the case in 2012. According to documents filed in the case and statements made in court, Murmylyuk participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firm.

The scheme began in 2010. After members of the conspiracy gained unauthorized access to the online accounts of brokerage firm customers, the group then used stolen identities to open additional accounts at other brokerage houses. Next, the conspirators carried out a series of “unprofitable and illogical” securities trades then led to losses in the victims’ accounts and gains in the other accounts they opened. One version of the fraud for example involved causing the victims’ accounts to sell options contracts to the other set of accounts, then purchase the same contracts back minutes later for several times the price. 

The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited, according to authorities. The conspirators then transferred the proceeds of the sham trades to accounts where the stolen money could be withdrawn.

The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.

In addition to the prison term, Judge Salas sentenced Murmylyuk Jan. 31 to serve three years of supervised release and ordered him to pay $505,357.79 in restitution.

Written By

Marketing professional with a background in journalism and a focus on IT security.

Click to comment

Trending

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join SecurityWeek and Hitachi Vantara for this this webinar to gain valuable insights and actionable steps to enhance your organization's data security and resilience.

Register

Event: ICS Cybersecurity Conference

The leading industrial cybersecurity conference for Operations, Control Systems and IT/OT Security professionals to connect on SCADA, DCS PLC and field controller cybersecurity.

Register

People on the Move

Threat intelligence firm Intel 471 has appointed Mark Huebeler as its COO and CFO.

Omkhar Arasaratnam, former GM at OpenSSF, is LinkedIn's first Distinguised Security Engineer

Defense contractor Nightwing has appointed Tricia Fitzmaurice as Chief Growth Officer.

More People On The Move

Expert Insights

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest cybersecurity news, threats, and expert insights. Unsubscribe at any time.