[ISN] Seven Arrested For Fleecing StubHub For $1.6 Million In Tickets

http://www.forbes.com/sites/katevinton/2014/07/23/seven-arrested-for-fleecing-stubhub-for-1-6-million-in-tickets/ By Kate Vinton Forbes Staff 7/23/2014 Seven alleged cyber criminals have been arrested as part of an international cybercrime ring that hacked StubHub and laundered upwards of $1.6 million dollars, the New York D.A.’s Office announced Tuesday. Two of the alleged criminals were arraigned in New York today, with bail set at $2 million and $500,000. Six of the arrests were made on Tuesday across three countries—three in London, one in Toronto, and two in New York—highlighting the international scope of cybercrime. A seventh criminal was arrested in Spain earlier this month. One American is expected to turn himself in this week, and two cybercriminals are still beyond reach in Russia, according to Manhattan D.A. Cyrus R. Vance at a press conference on Tuesday. This case originally began over a year ago in March 2013, when StubHub discovered a cyber breach and reported it to authorities, Vance said. This led to a case being opened with the New York City District Attorney’s Office, according to a StubHub statement. The investigation uncovered that cybercriminals had gained access to StubHub accounts and used customers pre-existing card information to purchase tickets for resale, in what is known as an “Account Take-Over Fraud.” StubHub, the subsidiary of eBay EBAY +1.17% (which had its own cyber breach) that allows people to buy and sell tickets online to games, concerts, and theater shows, notified affected customers after the breach and refunded them for the tickets in addition to increasing security, according to a statement. […]