Tuesday, August 18, 2009

Three indicted in largest U.S. identity theft scheme

Mon Aug 17, 2009 6:29pm EDT By Daniel Trotta

NEW YORK (Reuters) - Three men were indicted on Monday for allegedly stealing more than 130 million credit and debit card numbers in what U.S. authorities said they believe is the largest hacking and identity theft case ever prosecuted.

Albert Gonzalez, a former government informant already in jail in connection with hacking cases, and two unnamed Russians were indicted on charges related to five corporate data breaches from 2006 to 2008.

Card numbers were stolen in those breaches from credit-card processor Heartland Payment Systems and retail chains 7-Eleven Inc and Hannaford Brothers Co, prosecutors said.

The men targeted two other corporations, the U.S. attorney's office in New Jersey said in the statement, without naming those companies.

Heartland Payment Systems and Hannaford Brothers had previously and separately acknowledged the breaches, but the scope of the fraud had not been known.

Authorities also for the first time tied those cases to Gonzalez, who was arrested last year on suspicion of hacking into a restaurant chain's payment system.

Attorneys for Gonzalez were not available for comment.

Prosecutors said Gonzalez and the Russians, identified as "Hacker 1" and "Hacker 2", targeted large corporations by scanning the list of Fortune 500 companies and exploring corporate websites before setting out to identify


A year ago, Gonzalez was indicted along with 10 others from five countries on accusations of stealing 41 million credit and debit card numbers from major retailers, including TJX Cos Inc, owner of the TJ Maxx and Marshall's retail chains. Prosecutors said that ring caused more than $400 million in damages.

Prosecutors said Gonzalez and the other two men used numerous techniques to penetrate the computer systems.

Gonzalez was being held in a Brooklyn jail. Prosecutors would not comment on the whereabouts of the two Russians.

All three were charged with conspiracy to gain unauthorized access to computers, to commit fraud in connection with computers and to damage computers, and conspiracy to commit wire fraud. Each faces up to 35 years in prison and large fines if convicted.

Prosecutors said in the statement that the suspects would seek to sell the data to others who would use it to make fraudulent purchases.

They cited one example in which they said the suspects went to retail locations to identify the type of checkout machines, and after further investigation into the computer systems they uploaded information onto servers that worked as hacking platforms. 


Thursday, August 6, 2009

PayLogec and NXGEN Canada Join Forces

August 4, 2009: Vancouver, British Columbia, Canada – PayLogec Merchant Solutions (www.paylogec.com), a Canadian leading payment service provider registered with Elavon Canada (previously known as Nova Information Systems), and NXGEN Canada (www.nxgencanada.com), a North American leading payment services provider, today announced the creation of a Partnership which will accelerate the availability of new payment services options to Canadian Financial Institutions, Trade Associations, Businesses and Non-profit Organizations in Canada.


Both PayLogec and NXGEN Canada (a company of the NXGEN Group) have been authorized resellers of Elavon Canada since 2005, and together they process approximately $2 Billion annually for merchants in North America.


By joining forces, they will synergize on resources and will be able to bring to market the most advanced payment options for both brick-and-mortar and Internet-based business, as well as the most advanced reporting tools that allow merchants, agents, Financial Institutions and Trade Associations, to monitor on-line their financial performances.


Don Andrews, President of PayLogec (now President PayLogec/NXGEN Canada), will manage this Partnership.


“The competitive environment is causing many processing providers to initiate a lower quality of service. At PayLogec/NXGEN, we are committed to the needs of our merchants, while operating with full integrity, respect, and excellence,” states Mr. Andrews. “This relationship with NXGEN Canada will allow us to focus on what we do best; selling ’Best in Class‘ payment services and supporting our merchants and partners. Furthermore, by making full use of NXGEN’s operations and IT infrastructure, we will automate processes and offer unique on-line data access to our valued partners.”


Thomas Nitopi, CEO of the NXGEN group and co-Chair of Elavon’s MSP Advisory Board, comments “NXGEN is one of the top partners of Elavon in North America. We have performed extremely well in Canada over the last 4 years, and now we are looking toward more accelerated growth by providing the marketplace comprehensive solutions through the relationship and network of the PayLogec/NXGEN team.”  He continues, “The last few months of preparation for this venture have been amazingly exciting.  NXGEN’s credibility in the payment industry is unblemished.  When we began talking with PayLogec, we realized that the core values by which we execute business were the same (especially their focus on long-term relationships with customers and partners) and were achieved only by offering true win-win propositions.”


PayLogec and NXGEN Canada are processing the payment transactions through Elavon, a top ten global acquirer, processing transactions over its secure, reliable and fully redundant network.


“I am thrilled at this alliance and its ability to address the specific needs of Financial Institutions and Trade Associations across Canada,” says Cory Taylor, Managing Director of Elavon Canada.  “By combining industry experience with Elavon’s robust network, customer service and pricing structure, PayLogec and NXGEN Canada have created an irresistible offer for every business, bank, credit union, and association.”


About PayLogec:         

PayLogec Merchant Solutions Canada is a registered payments partner with Elavon Canada and is a member in good standing of the Visa and MasterCard International Associations. PayLogec delivers Solutions, Service and Expertise in all areas of the payments industry and brings that to each and every merchant.


Expertise: Every merchant and business can be assured that its individual processing situation will be treated with complete respect and privacy.


Service: All merchants will be assigned a PayLogec/NXGEN account executive to not only present a processing program, but to be there to install, train and be available at anytime to assist with questions, technical issues and overall support. We value your business.


Solutions:  PayLogec/NXGEN, in partnership with Elavon, provide the most comprehensive processing solution choices to the merchant. From “Chip and Pin” ready POS Terminals with dual dial-up/Internet connectivity, Wireless options and a complete Virtual Suite of products, you can be assured PayLogec has the right solution for your needs at the lowest cost. Furthermore, when you choose one of our solutions they are completely supported and serviced by both PayLogec/NXGEN and Elavon. You never have to deal with the Manufacturer.


About Elavon

Elavon's Global Acquiring Solutions organization is a part of U.S. Bancorp (NYSE: USB) and provides end-to-end payment processing services and solutions to more than one million merchants in the United States, Europe, Canada and Puerto Rico. Elavon represents the former brands of NOVA Information Systems and its affiliates FHMS and euroConex. For more information, visit http://www.elavon.com.


About NXGEN Canada

NXGEN Canada is a fully-owned subsidiary of NXGEN International, a multi-national provider of credit card processing, e-commerce and comprehensive payment services. NXGEN International’s mission is “To increase the level of professionalism in the Payment Services Industry while providing merchants with the next generation of products at the most competitive prices—acting locally while thinking globally!”  The goal of NXGEN Canada is to set the standard for value and service through timely innovation and a company-wide commitment to each and every one of our merchants.”


For more information, please contact

PayLogec Merchant Solutions: by Phone 604-541-8781, e-mail ghowes@paylogec.com

NXGEN Canada: by Phone +1-888-866-9436, e-mail: klamothe@nxgeninternational.com, or on the Internet: www.nxgencanada.com and www.paylogec.com