Skip the navigation
News

Laid-off sysadmin admits blackmailing mutual fund company

Had threatened to hack firm's systems if they didn't give him money, job references

By Sharon Gaudin
April 28, 2009 12:00 PM ET

Computerworld - A systems administrator pleaded guilty in a federal court yesterday to charges that he tried to extort an undisclosed amount of money and even forcibly secure good job references from a New York-based mutual fund company that had just laid him off.

Investigators asked that the mutual fund company not be identified.

Viktor Savtyrev, of Old Bridge, N.J., pleaded guilty to cyber extortion in U.S. District Court in Newark, N.J. Under the plea agreement, Savtyrev, also known as Victor Savturev, faces a suggested sentence of up to five years in federal prison and a fine of $250,000.

His sentencing hearing is scheduled for Aug. 24, according to Assistant U.S. Attorney Seth Kosto.

Savtyrev was employed as a systems administrator at the company before he and nine fellow employees were laid off last Nov. 5. All of the laid-off workers were given a severance package, according to a criminal complaint filed with the courts.

Kosto said that with the slumping economy causing layoffs in a variety of industries, companies should be extra cautious about securing their networks.

"Certainly, companies need to be extra vigilant," he said. "We continue to encourage companies to be extra cautious and monitor carefully their procedures regarding laid-off employees. And they need to call the authorities at the first threat."

Late on the morning of Thursday, Nov. 6, Savtyrev used a Gmail account to e-mail the company's general counsel and three other employees, saying he was "not satisfied with the terms" of his severance, FBI Special Agent Gerald Cotellesse wrote in the complaint. The FBI charged that Savtyrev threatened to cause extensive damage to the company's computer servers if it didn't increase his severance pay, extend his medical coverage and provide "excellent" job references.

The sysadmin also threatened to alert the media after attacking the server.

According to the complaint, the company contacted law enforcement personnel the day of Savtyrev's first threat. That evening, at the direction of investigators, a company employee recorded a phone call in which Savtyrev repeated his demands. During the call, he also said he would get his "comrades from Belarus" to help him hack into the company's servers, the complaint said.

Savtyrev sent a second e-mail to the company on Friday, Nov. 7, and in a taped phone conversation that evening agreed to show company officials how he could exploit the systems in return for meeting his demands, the complaint said.

The criminal complaint notes that he sent a third e-mail on Saturday saying he had opened several back doors in the company's systems and it would take months to find them.

Assistant U.S. Attorney Erez Liebermann, who also worked on the case, noted in an earlier interview that with a rocky economy and increased layoffs, companies need to shore up their defenses by shutting down internal and remote access immediately upon terminating a worker, monitoring system logs for any anomalies, adding extra layers of security and having a process in place for quickly reporting any threats or breaches to law enforcement agencies.

"And it's important that they report instances like this before they go from a threat to a loss of data," he added.

Read more about IT in Government in Computerworld's IT in Government Topic Center.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

IT in Government White Papers
Virtualizing Government Infrastructure
All server virtualization solutions are not created equal. The more-with-less agenda for government agencies is tailor-made for server virtualization, which is evolving into...
Overcome Top 7 Admin Challenges of Active Directory
As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
Insiders Can Ruin Your Company. Take Action.
Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
Top Solutions and Tools to Prevent Devastating Malware
Custom malware frequently goes undetected. According to Forrester Research, the best way to reduce risk of breach is to deploy file integrity monitoring...
Streamline Compliance and Increase ROI
Streamline, simplify, and automate compliance related activities; especially those that impact multiple business units. This white paper from NetIQ, outlines solutions that will...
All IT in Government White Papers
IT in Government Webcasts
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn...
Virtualize Business-Critical Applications with Confidence
Virtualizing business-critical applications has become a key focus for organizations as they move along their virtualization journey. With the launch of VMware vSphere®...
All IT in Government Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs