Neiman Marcus System Raided By Russian Hackers

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April 7 (Bloomberg) -- Bloomberg’s Michael Riley and J2Z Advisory President Jay Pelosky examine how Russian hackers raided Neiman Marcus' credit-card payment system with Trish Regan on Bloomberg Television's “Street Smart.” (Source: Bloomberg)

You mentioned in the piece they are from russia and have hacked into 160 million different cards . that is amazing and must be highly sophisticated.

No question these guys are good.

It is often hard to figure out identities behind the ip addresses but these guys are really well known, in part because they have been a major target of the the i in secret service for years.

They have hacked what one source said was over 100 different companies like jcpenney, 7-11, nasdaq, and now the latest revelation is they were behind an neiman marcus attack.

160 million credit cards over seven years.

People we have been talking to people say these are the best of the best.

They are located overseas.

Does that make it difficult?

It does.

They actually know very specific members of the group.

Last year the u.s. attorney in new jersey issued an indictment that named five of them.

One is a low level guy.

One looks to be more serious.

For the ones that are still in russia, there is not awful lot that can be done.

No extradition treaty train russia and the u.s. and the fbi and secret service has spent years trying to develop contacts with russian law enforcement to convince them to round these guys up to no effect.

At one point the fbi just decided in fact that they were giving the names and dossiers of very highest -- high-level criminals and were using them for their own purposes him including recruiting.

Before i talk about what it means for the stock prices of the various companies affected him a what are the average deaths -- thefts?

I they going after small amounts or for all they can run a? -- run up?

The way you make money is you sell them on underground sites.

The people who buy the cards are usually different from the people who steal them.

They create fake cards and go into a store and try to buy something like a big-screen tv and then they can sell the tv or exchange it and do all sorts of rings.

Not necessarily the same people doing the hacking.

They make their money by selling the cards.

When you sell 100 60 million cards and anywhere from $10-$50 apiece, that is a lot of money.

You mentioned jcpenney was one of the companies.

We all know about the target problem.

People do not really want to stop in the stores after there is a headline like this.

Look at the foot traffic in target and you can see people really backed off.

What does a scare like this due to accompany?

It is probably due to the fact that there is a problem.

If you are an investor, but i think that effect will be less and less as a happens more and more.

This is not the first, second or third time this is happening.

Maybe to your point, we can get smarter about it and invest in technology to prevent it from happening in the first place.

Very smart people on the side of trying to it -- trying to protect the identity.

We think about investing in the cyber security space, as opposed to saying i want to short every

This text has been automatically generated. It may not be 100% accurate.


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