Our Daily Breach - 2024/10/02

Our Daily Breach - 2024/10/02
Epsilon's new slogan is a little too honest
"Give us each day Our Daily Breach, and forgive us our sins of unrestricted access for all employees. Lead us not into the temptation to repeat the failures of those we chronicle."

After two weeks of reviewing the evidence, a federal jury convicted former Epsilon Data Management senior vice president Robert Reger, 57, of Boulder, Colorado, and business development manager David Lytle, 64, of Leawood, Kansas, of conspiracy to commit mail and wire fraud and numerous counts of substantive mail fraud and wire fraud.

Evidence at trial showed that the defendants’ crimes helped facilitate harmful fraud on the victims whose data they sold. The defendants sold nearly 100 lists of names and addresses to a particular fraudster client who used the data to defraud more than 218,000 victims of more than $23.7 million. Epsilon’s data showed that many victims were repeatedly defrauded by this single scheme, including more than 12,000 victims who were defrauded more than 20 times each. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes.

For these crimes, the U.S. District Court for the District of Colorado sentenced Robert Reger to 120 months in prison and David Lytle to 48 months in prison. In 2021, Epsilon was ordered to pay $150 million in penalties and victim compensation.

This goes to show that threats are not always external, sometimes it's Robert & David in the sales department. Stay paranoid - implement least privilege & separation of duties where possible.

Sources:

Epsilon Senior Executive and Sales Manager Both Sentenced for Selling Data on Millions of U.S. Consumers to Fraudsters
Two men were sentenced to prison today for selling targeted lists of U.S. consumers for the benefit of mass-mailing fraud schemes that defrauded hundreds of thousands of Americans out of tens of millions of dollars. Following a two-week trial, a federal jury convicted Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, of conspiracy to commit mail
Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud Schemes
Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.