Seven people have been charged with trading shares of Dell stock based on inside information. Four new arrests were made by the FBI on Wednesday, Reuters said, while three others have already been charged. In total, the group made more than $62 million in profits off of illegal trades in 2008. The defendants named on Wednesday include former portfolio manager Todd Newman of Diamondback Capital Management in Stamford, Anthony Chiasson of Level Global Investors in New York and Jon Horvath. A fourth person was also arrested in Los Angeles. The four men allegedly had early access to Dell’s earnings reports ahead of the company’s public announcements and have each been charged with one count each of securities fraud and one count each of conspiracy to commit securities fraud. More →
The FBI has denied a Freedom of Information Act (FOIA) request for materials about Carrier IQ, a company that has been in the spotlight recently after a security expert revealed that its software is installed on millions of smartphones. The FOIA request was sent by MuckRock and specifically asked for “manuals, documents or other written guidance used to access or analyze data gathered by programs developed or deployed by Carrier IQ.” FBI section chief David Hardy responded to MuckRock’s request with the following statement:
I have determined that the records responsive to your request are law enforcement records; that there is a pending prospective law enforcement proceeding relevant to these records; and that release of the information contained in these responsive records could reasonably be expected to interfere with the enforcement proceedings.
It is unknown if the FBI is currently working hand-in-hand with Carrier IQ or if Carrier IQ is the subject of an FBI investigation. MuckRock said that it plans to appeal the FBI’s FOIA denial. More →
The FBI has arrested at least two alleged members of “LulzSec” and “Anonymous,” FoxNews reported on Thursday. One LulzSec hacker was arrested at a technical school in Phoenix, Arizona and is believed to have been behind the infamous attacks on Sony in late May. A second hacker was arrested in San Francisco and manhunts are ongoing in Minnesota, Montana and New Jersey according to an FBI official speaking to Fox News. 32 Anonymous hackers were detained in Turkey in June while another 16 were arrested in the United Kingdom and the United States. A 19-year old LulzSec member named Jack Davis who went by the handle “Topiary” was arrested in July and later released on bail. Anonymous and LulzSec are believed to have been behind a number of high-profile attacks against the U.S. government, Sony, Apple and other targets. Anonymous has egged on the FBI with numerous statements over the past few months and even published a public letter that stated: “Your threats to arrest us are meaningless to us as you cannot arrest an idea … there is nothing – absolutely nothing – you can possibly to do make us stop.” More →
Following reports on Wednesday that British police had arrested a 19-year-old suspect thought to be the spokesperson of notorious hacker group “LulzSec,” new information suggests authorities may have been duped into arresting an innocent man. According to DailyTech, a hacker by the name of “The Jester” has discovered and published chat logs that suggest “Topiary,” the hacker reportedly arrested by authorities on Wednesday, is still at large. According to the exposed chat, Sweden-born Daniel Ackerman Sandberg — the alleged real LulzSec spokesperson — recently assumed the online identity of another man in an effort to mislead authorities. Sandberg, who has reportedly changed his name numerous times, is also said to have been caught on video speaking Swedish, further suggesting that the Scottish man arrested Wednesday by British authorities was not in fact LulzSec’s spokesperson. The full alleged chat logs between Sandberg and an anonymous second party can be read below (emphasis applied by DailyTech). More →
The Metropolitan Police Service announced on Wednesday that it has arrested a 19-year old hacker suspected to be a member of both “Anonymous Operations” and “Lulz Security,” also known as “LulzSec.” The hacker, who went by the name Topiary, served as the publicist of both hacker groups and often posted press releases and statements on Twitter. His apartment in the Shetland Islands, Scotland is currently being searched and Topiary is on his way to a police station in London. A second 17-year old person in Lincolnshire, England is also being interviewed but has not yet been arrested. The FBI began raiding apartments and arresting a number of people believed to be involved with Anonymous and LulzSec on July 19th. The hacker groups responded to the arrests and said there is “nothing – absolutely nothing – you can possibly to do make us stop.” During that time, Topiary is believed to have tweeted “Arresting people won’t stop us, FBI. We will only cease fire when you all wear shoes on your heads. That’s the only way this is ending,” from the official LulzSec Twitter account. More →
Global hacker collective “Anonymous Operations” together with “Lulz Security” on Thursday issued a statement to the FBI and other international authorities. The release is a response to statements made by FBI Director Steve Chabinsky tied to the recent arrest of 14 individuals with suspected ties to the hacker group. “We want to send a message that chaos on the Internet is unacceptable, Chabinsky told NPR in a recent interview. “[Even if] hackers can be believed to have social causes, it’s entirely unacceptable to break into websites and commit unlawful acts.” Anonymous did not mince words in its response. “These governments and corporations are our enemy. And we will continue to fight them, with all methods we have at our disposal, and that certainly includes breaking into their websites and exposing their lies,” an unnamed Anonymous representative said in a statement. “We are not scared any more. Your threats to arrest us are meaningless tous as you cannot arrest an idea. Any attempt to do so will make your citizens more angry until they will roar in one gigantic choir. It is our mission to help these people and there is nothing – absolutely nothing – you can possibly to do make us stop.” Anonymous’ full statement follows below. More →
The FBI raided the homes of three hackers from the infamous hacking group ‘Anonymous’ in New York, Fox News reported on Tuesday. Reportedly, more than 10 FBI agents stormed the house of Giordani Jordan in Baldwin New York and took “at least one laptop from the premises.” Jordan is suspected to have been behind denial of service (DoS) attacks against a number of firms, including Mastercard and Visa. In addition, agents are also searching homes in Long Island and Brooklyn. The hackers are said to be in their late teens and early 20s. It’s unclear if the hackers were also part of the group LulzSec, which claimed responsibility for hacks against Sony, the U.S. Senate and the CIA. More →
A hacker known as “The Jester” claims to have revealed the identity of a LulzSec member who may be the group’s leader. Thirty-year-old Xavier Kaotico, also known as Xavier de Leon or “sabu,” has been outed as the hacker prankster group’s leader, though his role and involvement with LulzSec has not been confirmed. The man allegedly lives or has recently lived in New York City, and is an independant IT consultant specializing in Python programming, Linux development, network security and exploit development. LulzSec, a small group of hackers that has become the focus of the international technology media over the past few weeks, has claimed responsibility for carrying out a number of malicious breaches. Recent LulzSec targets include websites belonging to Sony, Citigroup, the CIA and the U.S. Senate. After a public spat between the two high-profile hacker groups, LulzSec united with “Anonymous Operations” to wage a cyber war against the U.S. government, stating, “Sitting pretty on cargo bays full of corrupt booty, they think it’s acceptable to condition and enslave all vessels in sight. Our Lulz Lizard battle fleet is now declaring immediate and unremitting war on the freedom-snatching moderators of 2011.” LulzSec has not directly addressed the allegation that Kaotico is its leader, though it has posted messages to its Twitter account mocking The Jester, who calls himself a “Hacktivist for good. Obstructing the lines of communication for terrorists, sympathizers, fixers, facilitators, and other general bad guys.” More →
Call it a meeting of minds or call it an unholy matrimony — in either event, the recent rash of high-profile breaches is about to get an adrenaline shot. Hacktivist group Anonymous and a crew of emerging merry hackers known as are joining forces to target the dissemination of government secrets and the defacement of other websites such as those belonging to banks. “As we’re aware, the government and whitehat security terrorists across the world continue to dominate and control our Internet ocean,” LulzSec said in a statement on Monday. “Sitting pretty on cargo bays full of corrupt booty, they think it’s acceptable to condition and enslave all vessels in sight. Our Lulz Lizard battle fleet is now declaring immediate and unremitting war on the freedom-snatching moderators of 2011.” Operation Anti-Security — or AntiSec, as the group has dubbed the mission on Twitter — encourages fellow hackers to “open fire on any government or agency that crosses their path.” Hit the break for Lulz Security’s full statement. More →
More than 30 individuals allegedly associated with the hacker group “Anonymous” have been detained by Turkish police according to a report from the Turkish state media on Monday. Police executed raids in 12 separate Turkish cities as part of the operation that resulted in 32 arrests across Turkey. The news follows reports that three men allegedly tied to the group were detained in Spain last week, a move that sparked a statement from an Anonymous spokesperson. “You have not detained three participants of Anonymous. We have no members and we are not a group of any kind. You have, however, detained three civilians expressing themselves,” the group wrote on Saturday in a statement directed at the Spanish government. “You are providing us with the fuel, but now you must expect the fire.” Anonymous, which refers to itself as an “international Internet hactivist collective,” has carried out cyberattacks on numerous high-profile targets including Visa, Amazon and Sony. Anonymous’ full statement can be read below. More →
Four new arrests were made Thursday as the Securities and Exchange Commission and other U.S. government agencies continue to crack down on “channel checks” and other related practices. The defendants – identified as Walter Shimoon (VP of Business Development at Flextronics), Mark Longoria (supply chain manager at AMD), Manosha Karunatilaka (Taiwan Semiconductor Manufacturing Co Ltd) and James Fleishman (sales manager at an “expert networking” firm) — have been charged with various crimes surrounding alleged insider trading. Court filings indicate that Shimoon, Longoria and Karunatilaka were hired as consultants by Fleishman’s expert networking firm. The men allegedly passed along corporate secrets about Apple, AMD and other companies to two unnamed hedge funds. Court filings also indicate that Shimoon was paid to leak non-public details surrounding the iPhone 4 and iPad ahead of Apple’s public announcements.
“Today’s charges allege that a corrupt network of insiders at some of the world’s leading technology companies served as so-called ‘consultants’ who sold out their employers by stealing and then peddling their valuable inside information,” Manhattan U.S. Attorney Preet Bharara said in a statement. “Over the next many months and beyond, we will continue to enforce the law, police the market, and protect honest businesses and their shareholders by working methodically with the FBI and SEC to root out corporate corruption and insider trading.” More →
And here comes the FBI. Speaking to Wall Street Journal, an FBI spokesperson confirmed that the FBI has opened an investigation into the security breach which saw the confidential information of some 114,067 iPad 3G owners being retrieved. Despite the claims of Gawker, the site which broke the story, AT&T contends that the issue had been discovered and fixed the day before the story broke. Although security experts claim there it’s unlikely that further harm will come from the leak, there is still the off chance that the email addresses — some of which belong to high level members of the government and military — could fall into the wrong hands of an even worse group of people and become open game for hackers. More →