Indictment Against Hackers Involved In Anthem Data Breach Unsealed

Twor men are indicted for allegedly part of a group of hackers from China linked in the Anthem Insurance data breach in 2015.The indicted individuals are allegedly part of a group of hackers from China linked in the Anthem Insurance data breach in 2015. Photo: Tim Reckmann | | Flickr | CC BY 2.0

Two men were indicted in the U.S. in connection with the data breach at the health insurance company, Anthem, that siphoned more than 78.8 million customer and employee records between 2014 and 2015.

The Justice Department recently unsealed an indictment against two people who prosecutors say are part of a sophisticated hacking network group, based in China that was behind not only in Anthem data breach, but also the attacks against three other US businesses.

While the Justice Department did not name the said Chinese hacking group victimized the three other businesses who they said, they said that these companies were “data-rich.” One was a technology business, one was in necessary materials, and the third was in communications. They said that all of these three companies store a substantial amount – and some confidential – of data on their servers and data networks.

The suspects are 32-year-old Wang Fujie with the Western name of “Dennis” and another one that until now remained unnamed. The Justice Department could not find the real name of the unnamed man but said that he goes by various online nicknames such as “Daniel Jack,” “Kim Young” and “Zhou Zhihong.”

The charges are one count of conspiracy to commit fraud and related activity in relation to computers and identity theft, one count of conspiracy to commit wire fraud, and two counts of intentional damage to a protected computer.

According to the indictment documents, the hacker group where Dennis and the unnamed man belongs have carried out attacks using “sophisticated techniques” including spearphishing and malware from February 2014 and up until around January 2015.

They allegedly sent tailored spearphishing emails with links to malware and sent them to employees at the target companies. Once the targeted employee opened the email, the system would get affected by the malware that would later plant a backdoor Trojan that gives the hackers remote access via their command and control servers.

Wang is also accused of having set up the servers, hosted in California and Arizona that were used in the Anthem attacks.

The cyber attack suffered by the insurance company has had them cough up large amounts of money as settlement, making it the most significant data breach settlement ever. In 2017, the company agreed to pay $115 million to settle a class action suit over the breach.

The Anthem attack is also the most massive health insurance data breach, and the amount of data lost to the hackers dwarfed the biggest data breaches in the following years with 11 million breached at Premera and 10 million from Excellus.

The DOJ through a press release and Assistant Attorney General Brian Benczkowski called the hacking event as “unprecedented.”

“The allegations in the indictment unsealed today to outline the activities of a brazen China-based computer hacking group that committed one of the worst data breaches in history. These defendants allegedly attacked U.S. businesses operating in four distinct industry sectors and violated the privacy of over 78 million people by stealing their PII. The Department of Justice and our law enforcement partners are committed to protecting PII, and will aggressively prosecute perpetrators of hacking schemes like this, wherever they occur.”

Meanwhile, another set of indictments were released by the Justice Department against European hackers over the hacking of different private and public institutions in the United States. Ten individuals were charged with conspiracy to commit computer fraud, conspiracy to commit wire and bank fraud and conspiracy to commit money laundering.

The ten people who were charged were allegedly involved in the malicious software attacks that infected tens of thousands of computers and caused more than $100 million in financial losses, the US and European authorities announced Thursday.

According to the officials who filed the charges, the malware, which enabled cybercriminals and hackers from Eastern Europe infiltrate computer systems remotely and siphon funds from victim’s bank accounts, targeted companies and institutions across all sectors of American life.

The victims of the malware attacks included a Washington law firm, a church in Texas, a furniture business in California and a casino in Mississippi.

The investigation started following the dismantling of a network of computer servers, known as Avalanche, which hosted more than two dozen different types of malware. The Justice Department had successfully taken their operation apart in 2016.

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