but new york doesn't scare easy happy new years.ld we. tonight the information super highway. an online network called internet. >> back in the early 2000s, the internet was the wild, wild west. nothing had happened that says you better be aware what you're doing on the internet. >> we saw the emerging of these websites where individuals could g to commit credit card theft. identity documents. this is the 21st century's version of burglary. >> you can buy anything that is stolen at bottom dollar prices and that money could be for

terrorist financing, child ex plow -- exploitation, human trafficking. there is no way to know. it was a criminal world completely unknown to all law enforcement. >> as a former fbi agent and chairman of the committee, i hold oversight of all 16 of the intelligence agencies. my name is mike rogers. i had access to classified information gathered by our operatives, people that risked everything for the united states and our families. you don't know their faces or their names. you don't know the real stories from the people that live the fear and the pressure until now. the secret service is the oldest law enforcement agency that exists. the first thing that comes to

mind is the guys in the dark sunglasses and suits around the president and vice president and that's what secret service is known for. >> a lot of people don't know the organization was founded in 1865. it was one of the last acts done by president lincoln and it was established to combat counter fitting of u.s. currency. not until 1901 did the secret service have protective responsibilities so that was some 35 years later. >> before 9/11, the main focus was protection, counter fit retu currency and traditional bank fraud. someone goes into a store and uses a card not theirs, check fraud. but in 2001, 2002, we started to notice bank fraud was occurring in a different way. we noticed people were doing it more and more online but there were no entinternet cops. these criminal em plonterprises not on the radar. it was a shift in how crime was

committed and it was entirely new to us. this case started in 2003 when i got transferred to the fraud squad. there were four cases on my desk when i got there and one case with a series of atm photos of an individual who was taking hundreds of thousands of dollars out of atms in the new york city, new jersey area. the point of him taking out that much cash that quickly bothered me that someone was doing this and it was something on a scale that had never been seen before where someone could take out 50, $60,000 from one atm at one pop. his face annoyed me. it was like a smug look. so at that time, i took that folder and started at the beginning of an investigation where you're cold calling banks and saying are you seeing what we're seeing?

so then banks send photos and videos of the same person with the same haircut walking into an atm, multiple victims, multiple banks across the new york, new jersey area. that face. we found out he would order white plastic online. that's like a hotel key. you can encode debit card information on with a magnetic strip, the black strip across the back. with one swipe of downloaded software and a little device, you can take hacked data on that white plastic and use it in an atm. he would walk in anywhere between 30, 40, 50 different pieces of white plastic. some would work, some wouldn't. >> he would often do this late at night, not only to hopefully not get caught, but also because after midnight, the new limits

would go into effect for each card and for the at mrm our gol hoping for a pattern and hopefully grab him that way but he was very good about not using the same one twice and about randomizing how he went about it. the only thing we have was the picture and videos from the a trt atms. we had zero other leads for months but no matter how smart someone is, arrogance always comes with it no matter how good you are, you will eventually slip. so we waited. and one day we got a call from nypd who said i think they have your guy. >> an individual had just been arrested using a new york atm machine. he was dressed very strangely

and he was an atm machine for over 15 or 20 minutes because of cashing out before the end of the day and the next day. >> we were pretty pumped up. i sent two agents into new york city into that precinct to verify whether or not it was him. they got a good look at him and called me immediately without taking to him and said this is our guy. that's when we found out his name was albert gonzalez. when he was in the holding cell, we figured out he was wearing a wig so he handed it over with a smile. we h he had to have a disguise to prevent us from i.d.ing him. we wanted information. we wanted to know how he was doing it because we hadn't seen it before and wanted to know who he was working with. there was no way he was doing

this alone. the agents attempted to talk to him and see whether or not he would cooperate and at that point in time the answer was no. so we left. time is on your side with him. when you look at somebody that is thin, seaems like a white collar criminal, seems scared, leave them there and let them get mixed in with hardened criminals. >> albert was a drug user. he was frail. he was very scared of going to prison. >> so it took 24 hours for him to call us and say i want to talk. and the first condition of that conversation had to be that he had to give us permission to search his apartment. so he agreed to sign what's called a consent to search and we went to new jersey, a studio apartment. >> typically when you do a

search warrant, it's not like the movies where you ransack the place. you want to be methodical about what you do. >> the apartment was not well kept. it was pretty messy. he had all of the white plastic spread out on a table, and we found upwards of 30 different computer books, programming, networking, stacked up in a corner. the binders were broken and they were highlighted and notes in them. >> and they saw all these hard drives, keyboards, and the screens that he was using. >> we realized that this was something larger than what we had expected. it dawned on me then that albert was involved in hacking and this was going to be something big. and that's when everything changed. what does help for heart failure look like?

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all with great taste. new boost women. after goal sol lnzalez was , he gave us permission to search has apartment. we found upwards of 30 different computer books programming, networking stacked in the corner and dawned on me albert was involved in hacking and this would be something big.

then we found $30,000 in cash in a big box. a massive amount of ectasy, being in a school zone and having that much drugs sometimes doubles the accept tensentencin. he was looking at 20 years in prison for what he had and he wanted a reduced sentence and we wanted an introduction into his world. we wanted information and how he was hacking to ddata. it had to be on the internet because it was too complex. it really sets a level of intrigue. what is he doing? how far is he taking it? who is this guy? for the secret service to investigate a case like this, it was a huge risk. when i started briefing bosses about this, no would be was a

fan. investigations back in the day were street investigations. you arrested someone in the physical world in person, bosses could come by and say look, there is no criminals in your computer. go out on the street and arrest someone. it was not a physical world we're used to. >> the secret service does not like risk. failure is not an option. >> it was a complex case. we're not sure what you have and not sure if we'll support it. >> without risk, there is no reward. nobody really knew where this investigation was going to end up, what we were going to be able to uncover and i think that's what intrigued a lot of people to go ahead and take a chance and move forward with the investigation. so the bail was dropped and turned over to us. once i started debriefing him, i wanted to know how he started from his first hacks up into the day he was arrested. albert was born and raised in miami.

he learned computers as a kid self-taught. his first computer ended up with malware. it annoyed him and his golfs to figure out how it happened and who did it and that's how he got into computers. >> over time, albert became capable of just about anything when it comes to computers, network intrusions. >> we learned albert had been involved into intrusions into nasa and the government. he was 14 years old at the time. >> it became a game to him. >> what we learned through the debriefings, he was conducting criminal activity through a global criminal website for hacking and fraud with 4,000 members called shadow crypt. this is a new criminal enterprise that only operated online. this was so unique and so new

and so unfathomable and they were completely anonymous. >> so what we learned through the briefings with him, shadow crew was started about a year before albert gonzalez' arrest. >> shadow crew was a global marketplace for online crime. these hackers are hacking into company systems in order to get access to credit card information of consumers and sell it. all of this is new. most of the time it was solo hackers and now it's organized criminals online. this is identity theft on a scale we've never seen. >> the website was a black and blue site. it said shadow crew across the top and underneath it the logo was for those who like to play in the shadows. >> the web page had various rows dedicated to certain forums to identify the types of criminals

you wanted to interact with. >> if you've ever seen the movie "star wars," they go into this one bar and you have all these funky creatures operating. you have all these different characters that specialize in all different types of financial crime available for higher. >> it was an ebay for cybercrime. the scale, the breath at that -- the speed at which it moved just completely wiped out any type of case you would have in the physical world of traditional investigation. health care card. driver's license, passport. another item was the fullz, full wallet. >> they refer to as full info where you have the card number and everything about the victims identity where they lived, their social security number it wasn't

just a one-stop shot. how to hack with anonymity. the criminals had to shame posting about criminal activity fairly openly. >> information is power. information is the new currency and you can take any type of information that you can get, you're not supposed to have and use it against people for blackmail. you can use it to profit from. >> you may be arrested for a crime that you didn't commit. >> you don't realize the significance until you become a victim. cybercrime was a level now that was almost out of control. it was a dangerous trend. shadow crew needed to be stopped. the secret service had to learn how to conduct these investigations and so the secret service offered albert a deal

that quite frankly couldn't refu refuse. if he helped us as an inform pa -- info pant, we would help him. >> what did you want him to do? >> take down shadow crew. we call it the mother standard of care. it's how we care for our patients- like job. his team at ctca treated his cancer

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after albert gonzalez was arrested, the secret service

became aware of a hacking organization called shadow crew. never in my wildest dreams did i think in 2003, 2004 we would find one person in manhattan that would open up an entirely new world for us. >> we offered albert a deal that if we got the charges dropped, he would have to be an inform pant fighting cybercrime in the federal government's investigation into shadow creek. >> when albert agreed to cooperate and became an info informa informant, the idea was to send him back into the shadow crew site to collect our intel jens a -- intelligence and information. there was a number of stresses, one of them being where would we do this? not like he can walk into a secret service office and the i.p. address and log in a crew.

we knshadow crew saw the ip addresses. we had to find a location, one that was anonymous with high-speed internet. we had to fill it with servers and computers to be able to record everything we wanted and we had to do this all within a certain period of time because we were worried he was going to get found out. so we chose a location in jersey city on an old army base and then i needed help from other agents. >> you want to bring in people that have subject matter expertise whether it's task force related, whether it's cyber, whether it's electronic crime. >> so i basic he went around and create yachtd five other agents different backgrounds and decided to call it operation fire wall. fire walls keep people out and that was really the only term that i knew that was technical related and sounded cool. >> we also had a trial attorney

assigned to us and that attorney was kim peretti. >> in 2003 i was working at the department of justices computer crime section in washington d.c. >> kim had a very challenging job in that she had to take this information and put it in a way to convince the jury, judges and others that that case should be prosecuted. >> it was exciting and it was something we needed to figure out how to investigate. it was all new territory. so in the bunker, there was a large room with computer screens where they were monitoring the activity on shadow crew. >> the agents that not only had a visual of the source but could also see everything albert was typi typing. >> at this point the community wasn't well. we took his drugs and money and he was going through withdraw.

you could see in his face and weight loss he was struggling so i ended up kind of nursing him along and he eventually started to think a little more clearly. his interaction was more social. we started to worry about him a little bit less and i think he learned how to get a different high in that cat and mouse game that other inform paants get. albert was guiding us. we would have conversations saying let's go do x and he would put his brain on it and say no, let's do y. that's not going to work for us. i'm going to get found out. the whole thing will get blown. he was a good teacher so we learned from him. we found the structure of shadow crew is set up like the mafia of people that are bosses down to custome customers. >> the highest role is the ad minute stray tore. they were the ceo and decided

the strategy and day to day functions. >> then you had about 3,900 use users. >> to build our case, we had to buy things from those criminals using the shadow crew website. >> albert had a number of screen names but the main screen name was kumba johnny. >> we used albert to purchase contraband from other individuals to bring charges. >> credit cards, passports, cashier's checks. albert couldn't buy everything so he had to continuously introduce new agents and vouch for them to get them on the website. >> were you a member of shadow crew? >> yeah. >> what was your screen name? >> i'm not giving up my screen name. >> why can't you tell me? >> umm. i don't know. i can tell you mine. i won't tell you anyone else's.

okay. so i was eating one to two chocolate wendy's frosties a day. they were around 1500 calories and looked at my frosty drink trying to figure out my screen name and i started calling myself mr. frosty. we were making it up as we went along. fake it until you make it. we started to unmask physical evidence. it was fast and easy to buy stolen goods. the hard part is who did we just buy them from? it's very scary and what people could do with this information was even scarier. >> a criminal can live a completely different life under someone else's identity and do massive heist into financial services companies and other companies. >> just like they could knock down your door and rob you and beat you. it's just the same in the virtual world but they don't have to leave their house.

>> we started to realize that the only way for us to really have an impact was to take over the website so that we could basically destroy the entire criminal network. and in this world, administrations ran the site. they were the bosses. so we needed albert to get promoted up through the ranks to become an admin. his ability to talk to the hacking world and our ability to give him the direction he needed elevated him very, very quickly through shadow crew. and he ultimately started gaining more authority than other people to the point where albert was elected as an admin. >> albert worked his way up the organization to a level that people in shadow crew and even other rival organizations trusted because kumba johnny, that had a name.

albert was a gold mine. >> and so now, the ultimate goal is to take the top targets, build cases against them, identify them and arrest them all at once. >> these individuals didn't think they could be discovered because there was no physical meetings. >> they thought they couldn't be touched. they thought they were teflon. >> was this person sitting in new york at an internet cafe? were they at a government office in russia? we knew what shadow crew was doing and how, we just didn't know who they were. fun fact: 1 in 4 of us millennials have debt we might die with. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right, by consolidating your credit card debt into one monthly payment. you can get your interest rate right by locking in a fixed low rate today. and you can get your money right with sofi. check your rate in two minutes or less. get a no-fee personal loan up to $100k.

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we have this evidence and have this site with shadow crew. these criminals were able to hide behind the internet. at that time, all we had identified was the screen name that would pop up on the chat when we would communicate with them. >> these are human beings. you need to know their name, their address, where they are and who they are to be able to prosecute the individuals and arrest them. some of the nicknames they used were deck, mcgyver, silencer. >> mint floss. liquid technique. >> we can't arrest mint floss, scar face, you can't arrest

somebody if you don't know who they are. >> many of the shadow crew members never talked to each other, never met in person. their intersections were completely online. >> most of their efforts went into anonymity. we needed to take the digital world and push it into the physical world if we were really going to take this down. >> the next step was identification. that is where most of the effort went pretty quickly but we weren't doing that well in identifying them. >> we spent months striking out. i'm taking a lot of risk here because i'm running this investigation and i was completely stressed out. we would get an i.p. address and find it. that's a 70-year-old female in wisconsin. there's no way that's her. they were using her i.p. address to do their illegal activity. >> we were also trying to pull everything we could out of every chat they had, every post they made for clues on who they were and where they were.

one of the great examples i recall is taking the handle that someone used an online nickname and running it in google to discover that they had also used that online name to sell their father's car online. so we were able to piece together pieces from the physical world with the criminal world to ultimately identify who they were. >> it was very much a cat and mouse game. but how we really broke the case was the vpn. vpn is a virtual private network that encrypts your internet activity, which means law enforcement can't see it. we had built up albert's reputation so much on shadow crew that he then had the ability to say use the vpn. you'll never get caught. what they didn't realize is that we were wiretapping everything

they were doing. >> then we were able to identify the i.p. address used to log into the vpn and trace it book to an actual home from where they were connecting. >> we matched their name to a screen name quickly. we were using technology against them. the vpn changed the game. all of our focus was to put agents on the ground to start physically identifying these people by bringing the new world back into the old world. >> it's traditional law enforcement technique that finds these people out. the agents pretend to deliver a pizza to the individual's house. he never ordered a pizza but what he did is came back and said can you believe that someone just tried to deliver a pizza to my house?

>> you used whatever resources you need to get what you want. >> doj gave us permission to wiretap. so we had to do a takedown. >> there is no way i can apprehend 4,000 individuals. that's where you need strategy sessions to figure out the individuals we believe will have the biggest impact if arrested and taken offline. the ultimate golfs to take the targets and arrest them all at once. >> it was a high bar. >> we wanted to indict them for credit card fraud, identity theft, wire fraud, for access device fraud and computer fraud and unauthorized computer access. >> our target list was 28 people. 21 of those were in the u.s. seven were scattered from different countries. >> one country was in south america, a predominant amount in

europe. >> bella ruse, sweden, the u.k. but how do you take 28 people across the globe and arrest them all at once? >> the secret service was able to leverage in these different countries to help apprehend these individuals overseas. >> and the idea was to get the top targets together at the same time in front of their computers to the vpn for a big announcement. the announcement we would make that we thought would lure enough people into being online was that albert was going to retire as the ad minuadministra site. >> we had to make sure this was done simultaneous so they couldn't encrypt data, destroy data or flee.

>> it had to be perfectly timed. >> once any one of the thousands of members thought or knew that law enforcement was behind the shadow crew organization, it was over. each of these individuals likely had a stash of counter fit identity documents and could disappear in a moment's time. forever. >> if we didn't execute the takedown perfectly, we would blow the whole case. t-mobile's newest most powerful signal is here.

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we know a thing or two because we've seen a thing or two. even a- (ernie) lost rubber duckie? (burke) you mean this one? (ernie) rubber duckie! (cookie) what about a broken cookie jar? (burke) again, cookie? (cookie) yeah. me bad. (grover) yoooooow! oh! what about monsters having accidents? i am okay by the way! (burke) depends. did you cause the accident, grover? (grover) cause an accident? maybe... (bert) how do you know all this stuff? (burke) just comes with experience. (all muppets) yup. ♪ we are farmers. ♪ bum-pa-dum, bum-bum-bum-bum i don't make compromises. i want nutrition made just for me. but i also want great taste. so i drink boost for women. new boost women with key nutrients to help support thyroid, bone, hair and skin health. all with great taste. new boost women.

the target list is down to 28 people, because those are 28 people that we could identify. we had to do a takedown. the idea was to lure those people online together into a virtual private network that albert would retire as the ad minute stray to administration of the site and we could do a takedown and arrest of these people a year and a half of the investigation and the good and the bad built up to october 26th, 2004.

>> we chose sunday because we know that's the night to have the highest percentage to have individuals sitting at their computers. we wanted their computers because their computers likely have the evidence to corroborate our story and our transactions and identified a digsied aied y transactions. in our case, a no-knock warrant is critical. >> a no-knock warrant is you don't knock on the door, you knock the door down. >> we had to convince judges to allow us to use flash bangs so they wouldn't move. they are typically used for drugs, guns, high crime areas where you want to shock folks and make sure there was a bang involved in it but we did feel like being that it was such a lo

logistic nightmare there was a chance all of a sudden, poof, the smoke goes off and there is nobody behind the keyboard. there was a command cementer where the bosses were and then just like it started, it was me and albert in a room on a compute computer. >> we had to disburse teams globally. we had multiple screens. we had locations mapped out on the map. >> around 4:00 p.m. is when we started to get online and started to chat. >> around 6:00 we got enough targets online and started the conversation of this is the announceme announcement. >> we moved like pieces of a jigsaw puzzle when the teams

were in place. the team member agent would give the high sign and once they all were up, we went for it. >> almost every chat went dark. >> we were getting real-time information what was occurring in the field. it was nerve wracking. we say agents saying someone was jumping out after window. there was criminals in car and a car chase. >> the arrests occurred everywhere from new york to phoenix to california countries like bella ruse, sweden, the u.k. >> every time we had a successful arrest, we would announce it in the room and the whole room would erupt in cheers like you scored a touchdown. >> as part of the shadow crew takedown, we arrested 28 individuals and executed 27 search warrants. >> an hour after the takedown, we changed their front page to

say the secret service has been monitoring your criminal activity, contact us before we contact you. we locked the website so nobody could access information on it anymore and all they could see is that front page. >> the amount of information we were able to obtain the success apprehending and identifying the individuals were beyond our dreams. >> all 28 pled guilty because we built a phenomenal case against them. there was no way out of it. >> we wanted to send a message to these organizations that they weren't untouchable by law enforcement and law enforcement had the ability to pursue them and apprehend them. >> we were ecstatic and said holy s we just did this and no one else has. >> i'm sure albert was confli conflict conflicted. he was responsible for helping us make these arrests and these are people he built

relationships with over the years. i liked him. i wouldn't have worked with him as long as i did if i didn't like him. i had a level of respect for him that anyone would have with someone who is extremely intelligent and knows something that you know nothing about and is willing to teach you. >> after operation fire wall, there was a disruption in the hacker community. they speculated that somebody was an informant. >> we were worried about albert's safety. we didn't want him to stay in new jersey. so we sent him back to miami to live with his family. we thought that was a good place for him to sort of settle down, get a little more grounded and back into a normal life while we figured out what to do next. >> about a year later, i got transferred to miami in june of 2005. and i started working with albert again after the fire wall

takedown around november of 2005. >> doing what? >> same exact thing. so we started getting a target list together but it came to a point where we weren't making the arrests that i thought we should be making and albert was losing interest. and i didn't want him there. his head wasn't in the game and he didn't really want to be there. so, in the spring of 2007, i asked him to leave. and we cut ties. >> millions of shoppers may have had their credit card somebody hacked into a computer system, used by department stores in our area. the intrusion was noticed in december and given to authorities. 20 million cards were given in the breach. >> the secret service had continued to investigate the online crime. and several years later, there

was a series of high-profile data breeaches that were reported. we began to work with the secret service to investigate. >> credit card numbers from t.j. m maxx. we're looking at nine other retailers. >> dave & busters, barnes & nobel. >> companies were getting hacked at an alarming rate. >> when we started investigating the malicious files and codes, and matched them to other victims, we knew they were connected. >> the talent needed to do that, was at the top of the list. >> we started to link those attacks to different individuals and criminal groups. and it appeared to one of the online handles we had been looking at involved in some of the data breaches, was linked to

albert gonzalez through an e-mail add. >> after everything we did, to find out he was screwing all of us behind our back, that's a tough pill to swallow. well aflac gives you money directly, for things health insurance doesn't cover. aflac! we put together a little highlight reel for you. here's aflac helping you with your deductible... copays...out of pocket costs. you look good paying bills. get to know us at aflac.com (paul) wireless network claims america's most reliable network. the nation's largest and most reliable network. the best network is even better? best, fastest, best. enough. sprint's doing things differently. they're offering a new 100% total satisfaction guarantee. try it out and decide for yourself.

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the retail industry got a wake-up call earlier this year, when tj maxx had the worst data

breach in history. >> we started linking the attacks to different individuals and criminal groups. and a central figure for all of those breaches was gonzalez. >> and so, on may 7th, 2008, hi and four coconspirators were arrested. >> albert gonzalez is awaiting charges in trial that he orchestrated the biggest data breaches in history. they got 400 million credit card numbers from 5 companies. >> he was spending times in luxury apartments and had an $80,000 birthday party and nice hotel in new york. >> the secret service dug up $80

million in his parents' yard. he was adistricted. he couldn't stop. in 2009, albert gonzalez pled guilty to multiple counts of conspiracy, wire fraud, computer fraud, access to vice fraud, and aggravated theft in related to hacks and intrusions. >> he was sentenced to 20 years imprisonment because at the time was a massive sentence. it was a just sentence. it was a shoutout to the criminal world that this was taken seriously. >> i felt betrayed. it was personal to me. there were faphases of the personal relationship we went through, drugs and withdrawal and getting him through that and building up the trust and getting to the point where there

was static over a huge investigation that had never been done before. he was partly responsible for. i felt it turned eed him around. for me, it was how much of it was a lie, especially because the career i have now, every day, i have to think about the fact that he helped me getting here. it pisses me off. it doesn't take away from everything that was done and accomplished by the men and women in the secret service. >> "operation fireball" was the largest international takedown that the secret service had ever undertaken. it was the first time it had

done a lot of things. >> did not realize the impact of "operation firewall" so much later. the secret service still uses a lot of the same investigative tactics that were learned in quality firewa "firewall." >> this is the transformation from physical crime to online crime and how the law enforcement has to transform v switch to that transformation. >> equifax was hacked. >> the information of 140 million americans breached. >> you look at the number of identities of people have been taken. it's close to the entire u.s. >> hacked organizations are state-sponsored or terrorism related. whatever technology we have, criminals have access to, as well. law enforcement is learning and advancing in these techniques.

>> we're seeing the evolution of your information becoming empowered and how it gets used against you. it's a new world. ♪ we all know the stereotype of a swinger. 1970s parties. steamy hot tub action. and swapping spouses. a lot has changed sin ed since '70s. ♪ and what you may not know is that today, it's a full-on lifestyle that billions of americans have dabbled in behind closed doors. >> i want to watch.