Computer hackers victimize Portsmouth coffee shop customers
Date: 6/17/2009 6:21 am
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PORTSMOUTH — One day last August, the Secret Service paid a visit to the new owners of Custom House Coffee off West Main Road.
The news they brought was bad: Computer hackers, whereabouts unknown,
had used sophisticated spy software to break into the store’s wireless
network and steal the credit and debit card numbers of customers.
In all, about 50 customers of Custom House Coffee had been victimized,
as early as May 2008, according to Police Chief Lance Hebert. But it
wasn’t until the victims got their bank or credit card statements and
saw charges they didn’t recognize that they realized they had been
robbed. As the police reports started to filter in, detectives began
connecting the dots. So far, the thieves have run up nearly
$50,000 in unauthorized charges on the victims’ cards in eight states,
said Herbert, whose department just recently confirmed that the crimes
occurred. The victims, however, have all been made whole by their card
companies. Identity theft is nothing new, says Assistant U.S.
Attorney Lee Vilker, but it has traditionally involved thieves stealing
people’s mail or going through their trash. Robbery via
wireless remote access is something relatively new, Vilker said. He
said he has seen it only twice in Rhode Island and declined to discuss
the Portsmouth case or identify the other case. In general in these types of cases, he said, cyber-thieves remotely install a “keylogging” program on a target computer.
The keylogging programs travel on e-mail attachments and can hide
themselves on a computer system, becoming virtually undetectable. These
“trojan” programs record each keystroke made by the unwitting target
and transmit the data to thieves. In Portsmouth, the police
sifted through reports of identity theft until they discovered two or
three victims who had used their cards at Custom House Coffee. Then
they called in the FBI and the Secret Service. Former Custom
House Coffee owner Robert Mastin said there were security measures on
the computer system, “but they weren’t enough for some very
sophisticated hackers.” The security breach has been “totally
fixed,” said Mastin. “The chances of it happening again are less than
zero.” The police concur with that assessment. Thomas
Powers, resident in charge of the Secret Service office in Providence,
confirmed that his office provided forensic assistance in the Custom
House Coffee case. But he declined to detail what he said is a
continuing investigation. Hebert said his detectives have
received training in cyber crime-fighting to the extent that they know
“what to look for.” Then they alert state and federal law-enforcement
experts “who understand exactly how to track these people down,” Hebert
said. The FBI and a federally financed civilian partner, the
National White Collar Crime Center, encourage anyone who has been
victimized by cyber theft to both report to local police and to file a
complaint on their jointly sponsored Web site, the Internet Crime
Complaint Center, at www.ic3.gov.
“All that information helps investigators develop a pattern” that will
help them better track criminal behavior, said Craig Butterworth,
spokesman for the center. In 2008, IC3 received a total
of 275,284 complaints, a third more than in 2007, according to the FBI
and the National White Collar Crime Center. Credit and debit card fraud
accounted for 9 percent of the complaints. The most frequent type was
nonpayment or non-delivery of goods, followed by Internet auction fraud. In all, the complaints represented a dollar loss of $265 million, a $25-million increase from the previous year. Butterworth said officials believe that only 15 to 20 percent of online fraud gets reported to the Web site.
To protect their customers, Internet service providers generally
include virus detection and firewall protection with their broadband
services to ward off hackers. But there are still ways that
Internet users can be vulnerable, said Mark Matteo of Cox
Communications, who works as a liaison with law enforcement.
“When you download files, when you open e-mail, or when you use an
unsecured wireless network,” you can give thieves access to your
computer, Matteo said. When Cox installs a wireless network
connecting two or more home computers, it arranges to scramble the
Internet transmission, Quinn said. But any time there is a power
outage, or the network router in the home is reset, the homeowner may
need to encrypt the network again. Manufacturers of routers provide
directions on their Web sites. Computer hackers victimize Portsmouth coffee shop customers
01:00 AM EDT on Sunday, June 14, 2009


