Interesting article (since some posters are discussing credit card theft and 
password issues lately ). I am glad I have my gold protected with an 
E-Bullion CRYPTOCard! --

https://www.e-bullion.com/news_detail.php?id=45

News Story Link:

http://rense.com/general25/outhack.htm


Full Story>>>>>

Feds Out-Hack Russian Hackers
CBS News
5-16-2


SEATTLE (CBS) - Even for the FBI, it was an audacious sting, reports CBS 
News Correspondent Wyatt Andrews.

With the help of some new computer spying software, FBI agents were able to 
out-hack a pair of Russian hackers who had stolen thousands of credit card 
numbers and broken into Web sites like Pay Pal, the leading online bill 
payer, and online auctioneer eBay.

The challenge, said Assistant U.S. Attorney Floyd Short, was that the 
suspects, Alexei Ivanov and Vasily Gorshkov, were Russians. And their server 
where Short says they kept thousands of stolen credit card numbers was also 
in Russia.

The game -- which was successful -- was for authorities in Seattle, Wash. to 
steal the passwords and codes to the Russians' server in Russia.

"Gorshkov went on the Internet," said Floyd. "We obtained the name of the 
server in Russia, his user name and his password. & It was critical to the 
case.''

How exactly did the FBI record an encrypted password and codes? With a $100 
piece of software invented by Richard Eaton of Kinnewick, Wash.

Eaton's program, WinWhatWhere Investigator, has revolutionized computer 
snooping with what's called keystroke logging. The software secretly records 
everything a user types, coded or not, and sends a report to a third party 
who is spying on the user.

"The Russians just sat down and entered their passwords. It couldn't have 
been any better than that," said Eaton.

"The principle, I think, is a very dangerous one," said Gorshkov's lawyer 
John Lundin.

What the FBI did, Lundin said, should make Americans afraid. Using the 
keystroke logging program, agents lifted the Russians passwords, and used 
them to enter the main server in Russia and copy files. Only then did the 
agents get a search warrant to read what they downloaded.

"They consciously bypassed that legal requirement and used an intercepted 
password to unlock a safe to get into and access private papers," said 
Lundin, comparing the Russians' server in Chelyabinsk to a locked safe.

"The problem, I think, is a misuse of information obtained from the 
keystroke technology."

Lundin lost his attempt to have the stolen evidence kicked out of court. 
Prosecutors were able to fend off the privacy challenge by pointing out how 
precisely the FBI lured the Russians into the trap.

The FBI set up a bogus computer security company named "Invita" in downtown 
Seattle and let it be known they needed hackers as consultants on computer 
security. In an elaborate scheme, FBI agents posing as Invita employees made 
phone and e-mail contact with Gorshkov and Ivanov, and offered them 
consulting work as Internet security experts.

While demonstrating their hacker skills, the Russians also took time out to 
use an Internet connection to tap into their server in Russia. What they 
didn't realize was that the keystroke logging program was copying 
everything. FBI agents used those passwords to tap into the Russian server 
and copy what was there.

Gorshkov was convicted on Oct. 10, 2001 of 20 counts of fraud and computer 
crimes. Ivanov, who has other charges against him in Connecticut and 
California, is still awaiting trial.

Legal experts stress that the Russian case is an exception, that even now as 
keystroke spying grows more pervasive, the FBI still needs a warrant to raid 
a private computer.




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