CHEYENNE, Wyo. – A 19-year-old hacker suspected of infecting thousands of personal computers with malicious software that enabled him to tap into hundreds of credit union and bank accounts pleaded guilty to fraud Friday under a plea deal.
The case is believed to be the first in the U.S. in which a person was prosecuted for using peer-to-peer software to deliver so-called “malware.” The malware embedded itself in users’ Windows OS.
Prosecutors said Jason Milmont embedded the software, dubbed the “Naguache Worm,” in peer-to-peer software he made available over the Internet. Milmont then used the malware to gain remote control of computers that downloaded the worm, allowing him to obtain credit card and other personal account information. The software Milmont made available over the Internet offered free installation of Limewire, a peer-to-peer file sharing program.
Milmont used the information to tap into credit union and bank accounts to buy more than $75,000 worth of merchandise online, according to court documents. After obtaining control of a victim’s computer, Milmont used his or her credit union or bank online user name and password to access accounts.
