How Russian students in New York emptied American bank accounts, step by step!

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Ever had your money swept from a bank account?
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Cybercrime is the modern internet way to steal from banks and people like you and me.
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I watched the Russian parents of jailed cybercriminals. They were on Пусть Гаворутб, Puct Gavorat, Let Them Talk, explaining that their adult children were innocent or, if they had done something wrong, it was because of grim necessity. 
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They said their пебонёк, rebonok, children, students in New York City, could not make enough money at McDonald’s or other menial part time work, America has a financial crisis, and they had to do something desperate, so they were ensnared as mules in a cybercrime ring.  People on the show who had been victims of this type of thievery were not sympathetic.
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They destroyed the special opportunity of the J-1 visa…
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Eleven of these students arraigned in Manhattan are Russian. They were legally in America usually on a  J-1 student exchange visa*   but ignored the work limitations of this visa and committed multiple crimes.  Now they are held awaiting trial,  with no bail allowed.
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*   Non-immigrant visas.  J-1 visa for short term studies, F-1 visa for fulltime foreign students. Work is restricted to on-campus, or sometimes off-campus, if approved as course related.  There were 19,879 J-l and 3,998 F-1 visas issued to Russians in 2009.
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Being short of money in a foreign country is scary…
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In my text Survival Russian, the typical phrase appears, “Are you a student or do you work?”.  It’s an either- or situation for the typical youngster. Studying and also working at a part time job is new in Russia.
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Students typically don’t work for money until they finish school, perhaps at 21. Parents view them as children into their 20’s, which I think is ridiculous and debilitating.*
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*   The American media quickly named Kristina Svechinskaya the new Russian cyber beauty.  She is 22, cried at her arraignment, and was  a student at New York University.  Her photo shots are posted on her Facebook page.
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In America working for money while you also attend school starts early.  I remember selling door to door for the American Seed Company when I was 7, making and selling bird houses at 10, being an office boy for the Standard Accident Company at 16.  We not only got work experience but became savey about finding good work… who to ask at our school for help to get after hours work.
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беспредел, bespredel, Desperate behavior, is the by-word and justification for some actions in Russia since 1991.  Russia is the Wild West of Eastern Europe.   Here we have plenty of laws but most are not enforced.  We have police but they prevent and detect little.  The rule of law isn’t respected or taken seriously. Corruption is the word of the day.
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A Russian student landing in NYC comes from a random society with little methodical enforcement, and enters an America where diligent police seem to be everywhere.
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In Soviet times the people followed a moral compass, the code of 1962, and the training of the Pioneers and Komsomol.  Now there is little talk about virtues or principles.  The few that go to church often do so superficially.
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Our moral threshold can be lower in a group…
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Most people in their early 20s feel immortal, not expecting bad outcomes.  Recruited through an Internet social network such as Kontakt, the Russian, or a Russian language newspaper, the New York students became part of a compatriot group of Russian speakers… Russians, Belarus, Ukrainians, Moldovans, and Kazakhs. *
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* There were 37 of this group charged by the US District Attorney for the Southern District of New York, while  another group was charged by the Manhattan District Attorney, both on 30 Sep 10.  Some were already held, others just arrested, others still on the lam.  Confusion as to exact totals is the result!
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How the mob operates…
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In Eastern Europe, the  mob sends a mass mailing to targeted small businesses in the United States, loaded with the Zeus Trojan virus!
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Someone at a vulnerable business* clicks on a supposed email from (for example) LinkedIn or UPS, and the virus is now home on their computer system!
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*  Small business is targeted because they are less likely to have good anti-spyware and anti-virus programs.  Also they often don’t have the people or time to watch their accounts hour to hour.
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When this American business logs into internet banking, each key stroke  is recorded.  Then the mob later logs in to the same bank account and sends an electronic payment to the bogus personal New York account opened by the student.
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Three criminal steps of the students…
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The students’ first task was to use the phony passports given to them in NYC to start new personal bank accounts (some students used their own bank accounts). 
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Second, they had to withdraw  money quickly when they were notified the electronic check had been deposited, before people got wise.
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Third, they kept 8-10% as pay, and sent the rest by wire or bank transfer (or occasionally delivered it themselves) to Eastern Europe.*  The operation netted around 3 million dollars.
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*   Margarita Pakhomova was waiting for her plane to take off on September 16 when the Feds boarded the flight to collar her.
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Big time in the Big Apple…
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It’s clear that these Russian youth were working outside visa restrictions.  Their crimes continued many months and were obviously illegal.  Some of them came to America apparently planning to work for the cybermob.
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The $3,000,000 was transferred from small businesses accounts.  Town government, college and church accounts may also have been accessed.
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Banks in America are not required to cover business account cyber losses.*  This cybertheft can shut down a business forever.
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*   If your personal bank account loses money to cybercrime, eventually you should get your money back.
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How it will all play out…
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These young men and women are charged with identity theft , money laundering, and  bank fraud.  If convicted, the maximum jail time is 30 years, with a possible fine up to $1,000,000, as well as restitution. 
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Usually the federal attorneys want to insure a conviction with overwhelming evidence, and don’t care much about the length of sentence. 
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These type of cases often do not come to trial, as most people indicted ‘cop a plea’, that is, make a plea bargain with  the federal prosecutor for a lesser sentence.  The accused then pleads guilty and is sentenced.  My guess is that these twenty-somethings will end up with 10 months to 3 years of jail time. 
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The Feds
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It must be a shock for these Russians to see the wide-eyed busy  federal employees and lawyers moving around them. The Feds are polite but show little mercy.  Their good pay and esprit d’ corps guarantee they cannot be corrupted.
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In contrast, Russian police gathered at a crime scene often slouch, shake hands, and smoke.  It’s reported that criminals can buy a roof, a go-between, to negotiate with levels of crime and government, keeping that individual unindicted and protected.
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Innocent Until Proven Guilty, but Jailed Until Proven Innocent!
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Three Americans involved were allowed  bail, but the foreign nationals are in jail, probably at the prison across the street from the Southern District Courthouse.
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Their future is grim.  Growing up in a relative moral vacuum, surrounded by corruption in aspects of everyday life, not used to working to supplement their student budget, they were ready for co-option by the cybermob. As felons they will not be allowed to immigrate to the USA, and may suffer consequences in Russia on their release.
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Let’s hope they can eventually get their lives back on track and be happy, enthusiastic individuals again. 
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Advice from a former CLU… Watch Your Money!

• Change  bank passwords frequently… and make them complicated!  (But these password changes won’t protect you from the keylogging described above.)
  
• If I were in business again, I would seriously consider closing  internet banking for that account.  Go back to using checks and the mail.
  
• Click incoming emails and links carefully.  They may be the mob, stopping by to savor your balance!
  
• Check bank activity day to day.
  
• Credit cards are safer to lose than debit cards. 
  
• Read more about protecting yourself from cybercrime.
  
• Just hope you don’t become a target!

Please take time to Comment on this post about cybercrime. 

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Are you  sympathetic to the Russian students?

If guilty, what length of sentence should they get?

Are you considering ways to protect your bank account?
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Just click comments on the next to last line below.
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Related articles
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• Russian students charged with organizing global cyber crime heist (rt.com)
  
• The Zeus money mules, the federal complaints (wired.com)

Reddit Tags: cybercrime, J-1 Exchange visa, bespredel, corruption, Pioneers, Komsomol, cybermob, Zeus Trojan virus, identity theft, money laundering, bank fraud, buy a roof, bail, 'cop a plea', plea bargain, felon.