The First Cyber Bank Heist In History

Summary

In August 1994, a Russian hacker known as Levan executed the first cyber bank heist, stealing nearly half a million dollars from City Bank using hacked credentials. The operation involved international crime syndicates, leading to a frantic FBI investigation that resulted in arrests in San Francisco and Tel Aviv. As the manhunt intensified, Levan was eventually captured in London, facing extradition to the U.S. After serving time, he vanished in the Czech Republic amid mysterious circumstances. His story resurfaced years later, revealing a complex web of deceit and collaboration within the hacking community, leaving his ultimate fate shrouded in mystery.

Takeaways

• 🕵️‍♂️ The City Bank hack in 1994 was the first significant cyber heist, orchestrated by a group of Russian hackers.
• 💰 The operation involved multiple individuals across different countries attempting to withdraw large sums of money from City Bank.
• 👩‍💻 The hacker known as Arcanoid discovered vulnerabilities in City Bank's network through a hacking magazine, enabling infiltration.
• 🔑 Levan, who acquired hacking information for a low price, became a key player in executing the heist alongside the Tambov gang.
• 📉 The initial successful fraudulent transfer of $384,000 led to an extensive investigation by the FBI after the real estate company reported the theft.
• 🚨 The FBI set a trap by allowing subsequent transactions to proceed, leading to multiple arrests of accomplices in San Francisco and Tel Aviv.
• 🤝 Katarina Corova's cooperation with the FBI helped uncover her husband Yevan's connection to Levan and the criminal operation.
• 📞 A pivotal three-way call between Yevan, Levan, and the FBI resulted in significant confessions that exposed the heist's mastermind.
• 🌍 Levan's attempts to evade capture led him to flee to the UK, where he was ultimately arrested after being wanted by multiple authorities.
• ❓ Levan's mysterious disappearance in 1998 and the subsequent blog post by Arcanoid raised questions about the true mastermind behind the hack.

Q & A

What event triggered the FBI's involvement in the City Bank hack?

The FBI became involved after a Russian woman attempted to withdraw nearly half a million dollars from a bank in San Francisco, which was part of a larger fraudulent scheme involving the City Bank hack.

Who was the hacker behind the initial breach of City Bank's systems?

The hacker known as Arcanoid, along with a team of hackers, first infiltrated City Bank's systems by exploiting vulnerabilities they discovered in the bank's network.

What was the significance of the Frack magazine mentioned in the script?

Frack magazine was significant because it provided hackers with a list of addresses connected to the X.25 network, including City Bank, which piqued Arcanoid's interest and led to the subsequent hack.

How did Vladimir Levan become involved in the City Bank heist?

Vladimir Levan became involved after purchasing information from an unknown hacker about how to access City Bank's network, which he then used to orchestrate the heist.

What was the role of the Tambov gang in the heist?

The Tambov gang was a local crime group that Levan collaborated with to withdraw the stolen funds, using their resources to create new bank accounts and facilitate the cash withdrawals.

What tactic did the FBI employ to catch the thieves during the investigation?

The FBI decided to let a fraudulent transaction go through as a 'honeypot' to monitor and capture the individual attempting to withdraw the funds.

What happened during the attempted withdrawal in San Francisco?

Katarina Corova attempted to withdraw the funds at a bank but was delayed, as the bank had been alerted by City Bank about the suspicious transaction, leading to her eventual arrest.

How did the FBI manage to apprehend Alexios Palidas?

The FBI apprehended Alexios Palidas shortly after he attempted to withdraw money in Israel, as undercover agents were already present at the bank due to prior alerts.

What consequences did Vladimir Levan face after the heist?

Vladimir Levan was arrested in the UK after fleeing there and later spent 30 months in a British prison before being extradited to the US, where he cooperated with law enforcement.

What mystery surrounds the fate of Vladimir Levan after his release from prison?

After being released, Levan traveled to the Czech Republic and vanished; there are reports of his potential murder, and some believe he may have received a new identity from associates.