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11:41 AM ET 01/10/00
Hacker Reveals Credit Card Data
By DIANE SCARPONI=
Associated Press Writer=
NEW HAVEN, Conn. (AP) _ A computer hacker stole credit card
numbers from an Internet music retailer and posted them on a Web
site after the retailer refused to pay a $100,000 ransom.
The retailer, CD Universe, brought in Internet security
specialists today to shore up its Web site, as the FBI tried to
track down the hacker and customers contacted credit card companies
to see if their cards were compromised.
The parent company of CD Universe, eUniverse of Wallingford,
had
not yet determined how the Web site was compromised or how many
customers may have been affected.
``There's no way to tell. It's not a good situation,'' said
Brett Brewer, a vice president of eUniverse.
The New York Times reported the hacker claimed to have taken
300,000 card numbers.
The company did not know whether any customers' credit card
numbers had been used to make unauthorized purchases, although the
Times said the unknown extortionist claimed in e-mails that he used
some of the numbers to obtain money.
``We haven't had anybody call us and say, `Hey, somebody just
bought a car with my credit card,''' Brewer said.
Brewer said that as an emergency measure, eUniverse was able to
cancel customers' credit card numbers that had been stolen and was
notifying those cardholders by e-mail. He said the credit card
companies would automatically give those customers new cards.
American Express Co. said today that its online fraud guarantee
will protect its customers from responsibility for unauthorized
online charges. In general, credit card holders are responsible for
only up to $50 of any unauthorized charge.
Like many online retailers, CD Universe rode a burgeoning
interest in online shopping at Christmas to bust open sales
projections for music, movies, videos and games.
CD Universe's sales were $9.1 million last year and are
projected to rise to $16 million this year, Brewer said. For the
Internet as a whole, sales this past holiday season climbed more
than 300 percent from the previous year to as much as $12 billion,
above early expectations that sales would double.
The hacker, a self-described 19-year-old from Russia using the
name Maxim, sent an e-mail to the Times boasting that he exploited
a security flaw in the software used to protect financial
information at CD Universe's Web site.
He said he sent a fax to the company last month offering to
destroy his credit card files in exchange for $100,000.
After he was rebuffed, he used a Web site called Maxus Credit
Card Pipeline to distribute up to 25,000 of the stolen numbers,
said Elias Levy of SecurityFocus.com, a computer security firm. The
site was shut down Sunday morning.
``The Internet creates a whole new class of criminals,'' Levy
told the Times.
The hacker e-mailed the Times the numbers for 198 credit cards
as proof of the theft. The numbers were real, said the Times, which
contacted the credit card owners. At least one owner confirmed she
had been a CD Universe customer
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