Citibank and federal prosecutors disclosed Friday that a Russian hacker ring -- including a 24-year-old mathematics graduate and a former bus driver -- allegedly cracked computers at the nation's largest bank and tried to steal some $11 million, although they ultimately got away with just $400,000. In a three-count complaint unsealed in New York, the U.S. Justice Department charged that between June and October 1994, Vladimir Levin and others conspired to transfer some $11 million from Citibank to accounts in the United States, Finland, Germany, Israel, the Netherlands, Russia and Switzerland. The complaint charged that Levin, who worked at a St. Petersburg, Russia, software company, used his office computer to access Citibank's Wall Street-based cash-management computer system. Citibank designed the system for customers who want to initiate their own fund transfers to other banks. But authorities allege Levin, using pilfered passwords from legitimate Citibank customers and affiliates in Argentina, the Bahamas and Indonesia, allegedly used the system to move funds to he and his codefendant's accounts in at least 12 different banks in various countries. Prosecutors charge Levin moved the money through some 40 wire transfers involving $26,800 and $304,000 apiece. However, Citibank said it quickly discovered most of the transfers, keeping banks that received the funds from paying the hackers all but $400,000, which has not been recovered. Citibank said it also notified the FBI of the matter, prompting an inquiry that has resulted in six arrests in the United States, Britain, Israel and the Netherlands.
On Thursday, U.K. authorities held an extradition hearing for Levin, a 24-year-old St. Petersburg University graduate that authorities arrested earlier this year in Britain. Justice Department spokesman Marvin Smilon said an investigation into the matter continued, although he declined to comment further on the matter. Citibank stressed that 'at no time were any client funds at risk,' adding in a statement that as a result of the alleged hackers' activities, 'Citibank quickly upgraded all security procedures on its systems.'
