Russian Cybercriminal Sentenced to Prison for Role in $100 Million Botnet Conspiracy

A Russian national was sentenced Oct. 30 to eight years in prison for his role in operating a sophisticated scheme to steal and traffic sensitive personal and financial information in the online criminal underground that resulted in an estimated loss of over $100 million.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, and Special Agent in Charge Matthew Miller of the U.S. Secret Service’s Washington Field Office made the announcement after the sentencing by Senior U.S. District Judge T.S. Ellis III.

Aleksandr Brovko, 36, formerly of the Czech Republic, pleaded guilty in February to conspiracy to commit bank and wire fraud. According to court documents, Brovko was an active member of several elite, online forums designed for Russian-speaking cybercriminals to gather and exchange their criminal tools and services. 

“For over a decade, Brovko participated in a scheme to gain access to Americans’ personal and financial information, causing more than $100 million in intended loss,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “This prosecution and the sentence imposed show the department’s commitment to work with our international and state counterparts to bring cybercriminals to justice no matter where they are located.”

“Aleksandr Brovko used his programming skills to facilitate the large-scale theft and use of stolen personal and financial information, resulting in over $100 million in intended loss,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “Our office is committed to holding these criminals accountable and protecting our communities as cybercrime becomes an ever more prominent threat. I also want to thank our prosecutors and investigative partners for their terrific work on this complex case.”

“This investigation is a prime example of the Secret Service’s investigative mission; to protect the U.S. financial infrastructure by pursuing counterfeit and financial crimes investigations,” said Special Agent in Charge Matthew Miller of the Secret Service Washington Field Office.  “The Secret Service in alliance with state and local law enforcement is dedicated to effectively identifying those victimizing our communities and bringing them to justice.”

As reflected in court documents, from 2007 through 2019, Brovko worked closely with other cybercriminals to monetize vast troves of data that had been stolen by “botnets,” or networks of infected computers.  Brovko, in particular, wrote software scripts to parse botnet logs and performed extensive manual searches of the data in order to extract easily monetized information, such as personally identifiable information and online banking credentials.  Brovko also verified the validity of stolen account credentials, and even assessed whether compromised financial accounts had enough funds to make it worthwhile to attempt to use the accounts to conduct fraudulent transactions. 

According to court documents, Brovko possessed and trafficked over 200,000 unauthorized access devices during the course of the conspiracy. These access devices consisted of either personally identifying information or financial account details. Under the U.S. Sentencing Guidelines, the estimated intended loss in this case has been calculated as exceeding $100 million.

Senior Trial Attorney Laura Fong of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Alexander P. Berrang, and former Assistant U.S. Attorney Kellen Dwyer prosecuted the case.  In addition, the Justice Department’s Office of International Affairs and the Cybercrime Intelligence Unit of the New York County District Attorney’s Office provided critical assistance.  The Department of Justice also appreciates the significant cooperation and assistance provided by authorities in the Czech Republic.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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    The Department of Defense (DOD) is closer to being able to use military code (M-code)—a stronger, more secure signal for the Global Positioning System (GPS) designed to meet military needs. However, due to the complexity of the technology, M-code remains years away from being widely fielded across DOD. M-code-capable receiver equipment includes different components, and the development and manufacture of each is key to the modernization effort. These include: special M-code application-specific integrated circuit chips, special M-code receiver cards, being developed under the Air Force Military GPS User Equipment (MGUE) programs, and the next generation of GPS receivers capable of using M-code signals from GPS satellites. DOD will need to integrate all of these components into different types of weapon systems (see figure for notional depiction of integration for one system). Integration across DOD will be a considerable effort involving hundreds of different weapon systems, including some with complex and unique integration needs or configurations. Global Positioning System User Equipment Integration The Air Force is almost finished—approximately one year behind schedule—developing and testing one M-code card for testing on the Marine Corps Joint Light Tactical Vehicle and the Army Stryker vehicle. However, one card intended for use in aircraft and ships is significantly delayed and missed key program deadlines. The Air Force is revising its schedule for testing this card. The M-code card development delays have had ripple effects on GPS receiver modernization efforts and the weapon systems that intend to use them. For example, an Air Force receiver modernization effort that depends on the new technology will likely breach its schedule and incur additional costs because of the delay. In turn, DOD planned to incorporate that receiver into its F/A-18 fighter aircraft, AV-8B strike aircraft, and the MH-53E helicopter, but it no longer plans to do so because of the delay. DOD has not yet determined the full extent of the development effort to widely integrate and field M-code receivers across the department. The amount of additional development and integration work is expected to vary for each weapon system and could range from a few weeks to several years. DOD is taking steps to enable fielding modernized receivers that use M-code cards by working to identify integration and production challenges. DOD has been developing the capability to use its more jam-resistant military-specific GPS signal for 2 decades. The Air Force launched the first GPS satellite capable of broadcasting the M-code signal in 2005, but is only now completing development of the software and other equipment needed to use it. The GPS modernization effort spans DOD and the military services, but an Air Force program office is developing M-code cards for eventual production and integration into weapon systems. The National Defense Authorization Act for Fiscal Year 2016 included a provision that the Air Force provide quarterly reports to GAO on next-generation GPS acquisition programs, and that GAO brief congressional defense committees. Since 2016, GAO has provided briefings and reported on various aspects of GPS. This report discusses DOD's progress and challenges (1) developing M-code receiver cards, and (2) developing receivers and taking other steps to make M-code-capable receivers available for fielding. GAO reviewed schedules and cost estimates for the Air Force's MGUE programs; military service and DOD M-code implementation data; and test and integration plans for aircraft, ships, and ground vehicles. GAO also reviewed strategies for continued access to microelectronics and interviewed officials from the MGUE programs, military services, and DOD, and representatives from microelectronics developers. For more information, contact Jon Ludwigson at (202) 512-4841 or ludwigsonj@gao.gov.
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  • Open Data: Agencies Need Guidance to Establish Comprehensive Data Inventories; Information on Their Progress is Limited
    In U.S GAO News
    The Open, Public, Electronic and Necessary Government Data Act of 2018 (OPEN Government Data Act) codifies and expands open data policy and generally requires agencies to publish information as open data by default, as well as develop and maintain comprehensive data inventories. The Office of Management and Budget (OMB) has not issued statutorily-required guidance for agencies to implement comprehensive data inventories, which could limit agencies' progress in implementing their requirements under the act. OMB also has not met requirements to publicly report on agencies' performance and compliance with the act. Access to this information could inform Congress and the public about agencies' open data progress and statutory compliance. Implementation Status of Selected OPEN Government Data Act Requirements   Assessment Federal data catalogue: By July 2019, the General Services Administration (GSA) must maintain a point of entry dedicated to sharing agency data assets with the public, known as the “Federal data catalogue”. The Office of Management and Budget (OMB) and GSA must ensure agencies can publish data assets or links on the website. ✓ Online repository: By July 2019, OMB, GSA, and the National Archives and Records Administration (NARA) must collaborate to develop and maintain an online repository of tools, best practices, and schema standards to facilitate the adoption of open data practices across the federal government. ✓ Implementation guidance: By July 2019, OMB must issue guidance for agencies to implement comprehensive inventories. ✖ Biennial report: By January 2020, and biennially thereafter, OMB must electronically publish a report on agency performance and compliance with this act. ✖ Legend: ✓Requirement fully met I ✖ Requirement not met Source: GAO analysis of Pub. L. No. 115-435, 132 Stat. 5529(Jan. 14, 2019), resources.data.gov, www.data.gov , and an interview with OMB staff. | GAO-21-29. GAO found that all 24 Chief Financial Officers (CFO) Act agencies display their data inventories on their websites, as well as on an online catalogue of federal data assets. Agencies took a variety of approaches to providing public access to individual data assets such as using Data.gov as the human-readable public interface, hosting searchable inventories on their own agency websites and providing lists of data or downloadable files on their websites. Information on the extent to which agencies regularly update their data inventories is limited. OMB and GSA do not have a policy to ensure the routine identification and correction of errors in electronically published information. The absence of such a policy limits publicly available information on agency progress. As of September 2020, seven of the 24 CFO Act agencies had also publicly released COVID-19 related datasets or linked to related information from their open data web pages as required by the Federal Data Strategy. These datasets provide data on a range of COVID-19 related topics including data on disease transmission and loans provided to businesses. Federal agencies create and collect large amounts of data in support of fulfilling their missions. Public access to open data—data that are free to use, modify, and share—holds great promise for promoting government transparency and engendering public trust. Access to open data is particularly important in the current pandemic environment as government agencies, scientists, and the public work to understand and respond to COVID-19 using data-focused approaches. The OPEN Government Data Act includes a provision for GAO to report on federal agencies' comprehensive data inventories. This report examines the extent to which 1) OMB, GSA, and NARA met their statutory requirements to facilitate the establishment of federal agencies' comprehensive data inventories; and 2) CFO Act agencies developed data inventories in accordance with OMB guidance. GAO reviewed agencies' websites and related documentation, and interviewed OMB staff and GSA and NARA officials. GAO is making two recommendations to OMB to issue required implementation guidance and report on agency performance. GAO also recommends that OMB and GSA establish policy to ensure the routine identification and correction of errors in agency data. GSA concurred with GAO's recommendation and OMB did not comment on the report. For more information, contact Michelle Sager at (202) 512-6806 or SagerM@gao.gov.
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  • Veterans Community Care Program: VA Took Action on Veterans’ Access to Care, but COVID-19 Highlighted Continued Scheduling Challenges
    In U.S GAO News
    What GAO Found During the COVID-19 pandemic, the Department of Veterans Affairs (VA) took action regarding veterans' access to care through the Veterans Community Care Program (VCCP). For example, VA recommended that VA medical facility staff schedule telehealth appointments whenever possible in order to reduce veterans' risk of exposure to COVID-19. VA also directed facility staff to prioritize appointment scheduling and monitor referrals. Nevertheless, for referrals created between January 2020 and January 2021, GAO's analysis below shows that about 172,000 referrals (3 percent) remain unscheduled as of March 24, 2021. Status of Veterans Community Care Program Referrals Created Between January 2020 and January 2021, as of March 24, 2021 Note: A referral is complete after the veteran attends the appointment and VA staff receive medical documentation from the provider. A canceled referral is returned to the ordering VA provider. A discontinued referral is no longer wanted or needed. Referral data from one VA facility were not reported after October 2020.aThe number of unscheduled referrals created in January 2020 through May 2020 is too small to display in this figure. Staff at six selected VA medical facilities told GAO they faced both new and previously identified challenges scheduling VCCP appointments during COVID-19. For example, staff from all six facilities stated that community care wait times increased during the pandemic. However, as VA lacks an overall wait-time measure for the VCCP, the effect of COVID-19 on appointment timeliness is unknown. GAO previously identified, and made recommendations to address, VA's lack of wait-time measures under its previous community care programs in 2013 and 2018. Given that VA had not implemented these recommendations over the prior 7 years, in 2020 GAO recommended congressional action to require VA to establish a VCCP wait-time measure. Staff from all six facilities said they also faced challenges with understaffed community care offices and increased referral volume as veterans returned to seek care. GAO previously recommended in 2020 that VA direct its medical facilities to assess community care staffing needs. VA has taken some action to address these concerns but has not yet implemented this recommendation. Why GAO Did This Study In June 2019, VA implemented a new community care program—the VCCP—under which eligible veterans can receive care from community providers. GAO has previously reported on challenges VA has faced regarding oversight of its community care programs, including the VCCP. VA's ability to ensure veterans have timely access to care under the VCCP is especially important as VA continues to respond to the COVID-19 pandemic. The CARES Act includes a provision for GAO to report on its ongoing monitoring and oversight efforts related to the COVID-19 pandemic. This report describes (1) VA's response to the COVID-19 pandemic as it relates to the VCCP and (2) challenges selected VA medical facilities experienced scheduling VCCP appointments. GAO reviewed VA documentation, such as guidance for VCCP appointment scheduling, and reviewed VCCP referral and appointment data. GAO interviewed officials from VA and its two third-party administrators, and community care management and staff from six VA medical facilities, which were selected, in part, based on complexity, rurality, and location.
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  • Climate Change: A Climate Migration Pilot Program Could Enhance the Nation’s Resilience and Reduce Federal Fiscal Exposure
    In U.S GAO News
    GAO identified few communities in the United States that have considered climate migration as a resilience strategy, and two—Newtok, Alaska, and Isle de Jean Charles, Louisiana—that moved forward with relocation. Newtok, for example, faced imminent danger from shoreline erosion due to thawing permafrost and storm surge (see figure). Literature and experts suggest that many more communities will need to consider relocating in coming decades. Shoreline Erosion at Newtok, Alaska, from July 2007 to October 2019. Federal programs provide limited support to climate migration efforts because they are designed to address other priorities, according to literature GAO reviewed and interviews with stakeholders and federal officials. Federal programs generally are not designed to address the scale and complexity of community relocation and generally fund acquisition of properties at high risk of damage from disasters in response to a specific event such as a hurricane. Unclear federal leadership is the key challenge to climate migration as a resilience strategy. Because no federal agency has the authority to lead federal assistance for climate migration, support for climate migration efforts has been provided on an ad hoc basis. For example, it has taken over 30 years to begin relocating Newtok and more than 20 years for Isle de Jean Charles, in part because no federal entity has the authority to coordinate assistance, according to stakeholders in Alaska and Louisiana. These and other communities will rely on post-disaster assistance if no action is taken beforehand—this increases federal fiscal exposure. Risk management best practices and GAO's 2019 Disaster Resilience Framework suggest that federal agencies should manage such risks before a disaster hits. A well-designed climate migration pilot program that is based on project management best practices could improve federal institutional capability. For example, the interagency National Mitigation Investment Strategy—the national strategy to improve resilience to disasters—recommends that federal agencies use pilot programs to demonstrate the value of resilience projects. As GAO reported in October 2019, a strategic and iterative risk-informed approach for identifying and prioritizing climate resilience projects could help target federal resources to the nation's most significant climate risks. A climate migration pilot program could be a key part of this approach, enhancing the nation's climate resilience and reducing federal fiscal exposure. According to the 13-agency United States Global Change Research Program, relocation due to climate change will be unavoidable in some coastal areas in all but the very lowest sea level rise projections. One way to reduce the risks to these communities is to improve their climate resilience by planning and preparing for potential hazards related to climate change such as sea level rise. Climate migration—the preemptive movement of people and property away from areas experiencing severe impacts—is one way to improve climate resilience. GAO was asked to review federal support for climate migration. This report examines (1) the use of climate migration as a resilience strategy; (2) federal support for climate migration; and (3) key challenges to climate migration and how the federal government can address them. GAO conducted a literature review of over 52 sources and interviewed 12 climate resilience experts. In addition, GAO selected and interviewed 46 stakeholders in four communities that have considered relocation: Newtok, Alaska; Santa Rosa, California; Isle de Jean Charles, Louisiana; and Smith Island, Maryland. Congress should consider establishing a pilot program with clear federal leadership to identify and provide assistance to communities that express affirmative interest in relocation as a resilience strategy. The Departments of Homeland Security and Housing and Urban Development provided technical comments that GAO incorporated as appropriate. For more information, contact Alfredo Gómez at (202) 512-3841 or gomezj@gao.gov.
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  • Firefighting Foam Chemicals: DOD Is Investigating PFAS and Responding to Contamination, but Should Report More Cost Information
    In U.S GAO News
    What GAO Found The Department of Defense (DOD) is early in the environmental restoration process at or near the 687 installations with a known or suspected release of certain per- and polyfluoroalkyl substances (PFAS)—heat-resistant chemicals found in certain firefighting foams that can contaminate drinking water (see fig.). DOD Installations in the Environmental Restoration Process with a Known or Suspected PFAS Release, as of Fiscal Year 2020 aAccording to DOD officials, in fiscal year 2021 the Air Force changed its definition for when this phase is considered complete, resulting in a lower number of DOD installations (129 installations) that had completed this phase as of March 2021. DOD has taken actions (e.g., providing bottled water, installing water treatment systems) to address PFAS in drinking water at or near its installations when PFAS amounts exceeded federal health advisory levels. DOD generally has not taken actions to address PFAS in drinking water where PFAS amounts were below the federal advisory levels, but above state PFAS standards. DOD estimates that its future PFAS investigation and cleanup costs will total more than $2.1 billion beginning in fiscal year 2021, which is in addition to $1.1 billion in actual PFAS costs incurred through fiscal year 2020. These costs will likely increase significantly, because DOD is still in the early phases of its PFAS investigation. DOD officials also cited regulatory uncertainty at the federal and state levels as a significant challenge in estimating PFAS environmental restoration costs. However, DOD has not reported future PFAS cost estimates, or the scope and limitations of those estimates, in its annual environmental reports to Congress. By reporting this information to Congress, DOD would ensure that Congress has increased visibility into the significant costs and efforts associated with PFAS investigation and cleanup at or near military installations. As of March 2021, DOD had identified six potential PFAS-free foam candidates; however, PFAS-free foams have been unable to fully meet DOD's current performance requirements. By law, DOD must ensure that a PFAS-free firefighting alternative is available for use at its installations by October 2023. DOD is funding research to address challenges associated with identifying PFAS-free alternatives. DOD plans to continue using PFAS-containing foam aboard ships at sea—as allowed for by the National Defense Authorization Act for Fiscal Year 2020—until a PFAS-free alternative can meet existing requirements. Why GAO Did This Study DOD has long used PFAS-containing firefighting foam to extinguish fires quickly and keep them from reigniting. PFAS can migrate into the environment (e.g., drinking water) and may have adverse effects on human health. The federal government has issued two nonenforceable advisories but has not yet regulated PFAS in drinking water; some states have adopted PFAS regulations. Conference Report 116-333, accompanying the National Defense Authorization Act for Fiscal Year 2020, included a provision for GAO to review DOD's response to PFAS contamination. This report (1) describes DOD's progress in the investigation and cleanup of PFAS at its installations, and DOD's actions to address PFAS in drinking water; (2) describes DOD's actual and estimated costs for PFAS investigation and cleanup, and evaluates the extent to which DOD has reported those figures to Congress; and (3) describes DOD's progress in identifying PFAS-free firefighting alternatives. GAO analyzed DOD data on PFAS cleanup, costs (actual and estimated obligations), and foam alternatives; evaluated DOD's PFAS cost reporting against policy; and interviewed officials from DOD and selected installations and state environmental agencies.
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