As a judge handed down prison terms to two hackers for their roles in a ring that stole millions of credit card numbers from U.S. retailers, the list of their victims grew this week to include J.C. Penney Co. Inc. and The Wet Seal Inc., though both companies said the group did not obtain their customers’ data.
On Friday, a judge in U.S. District Court in Boston sentenced Albert Gonzalez, 28, of Miami, to 20 years in prison for his part as leader of the group, which, beginning in 2003, installed software in retailers’ networks that captured more than 40 million credit card numbers. Co-conspirator Christopher Scott, 28, also of Miami, received a seven-year sentence on Monday. Both men had earlier pleaded guilty to charges including fraud and identity theft.
Separately on Monday, the court unsealed documents that showed the hackers had attempted to access J.C. Penney’s computer networks in October 2007. Penney’s, previously known as “Company A” in court documents, had argued it should remain anonymous because the ring’s efforts were unsuccessful.
The company on Tuesday said: “Since no J.C. Penney customers were harmed as a result of the attempted breach, the company believed it had a legitimate interest in not being linked to criminal activity that resulted in major thefts of credit card information from other companies.”
Penney’s pointed to the decision of federal prosecutors in New Jersey, where a portion of the case was heard, not to disclose it as a victim because no data were stolen. The U.S. Attorneys’ office in Boston argued instead that it was in the public interest to reveal the department store operator’s part in the case. In an argument filed under seal on Dec. 29, the Boston prosecutors acknowledged that there was no evidence card information had been taken in the Penney’s incident, but wrote that it was only fair the store’s customers be told of the attempt.
In a separate statement Monday, teen retailer The Wet Seal said it discovered in May 2008 it had been a target of the Gonzalez ring. The company said it found no evidence the attack compromised any customer data.
The TJX Cos. Inc., one of the largest victims of the group, acknowledged in January 2007 that hackers had breached its systems. Indictments later showed the group targeted DSW Inc. and Forever 21 Inc., among others.
In a report issued Tuesday, the office of the U.S. Inspector General said identity theft affects an estimated 10 million Americans annually and that it believed the Department of Justice’s current approach to combat the problem is “not adequate based on the prevalence of the crime.”
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)