G2 Web Services Part of JPMorgan Hacking Case

Nov. 16, 2015

G2 Web Services Part of JPMorgan Hacking Case Included in the indictment of the hackers arrested for breaking into the networks of JPMorgan Chase, E-Trade, Scottrade, Dow Jones and others was an unidentified victim that reports say is G2 Web Services, a Seattle-area company that helps banks and other financial services providers root out fraudulent merchants engaged in money laundering. Security reporter Brian Krebs on Friday uncovered the identity of the company called “Victim-12” in the indictment.

According to Krebs, prosecutors allege G2 was targeted starting in 2012 so the criminal ring, which included money-laundering activities through fraudulent Websites, could have greater insight into the fraud-fighting strategies being employed against it.

“In particular, through their unlawful intrusion into Victim-12’s network, [Gery Shalon, identified by law enforcement as the cybercrime ring’s leader] and his co-conspirators determined which credit and debit card numbers Victim-12 employees were using to make undercover purchases of illicit goods in the course of their effort to detect unlawful merchants,” the indictment said. “Upon identifying those credit and debit card numbers, Shalon and his co-conspirators blacklisted the numbers from their payment processing business, automatically declining any transaction for which payment was offered through one of those credit or debit card numbers.”