Kopiloff Accused of Using Limewire to Steal Identitys

Gregory Thomas Kopiloff, who hails from Seattle, has been arrested in what may be the first identity theft case against someone whose medium may have been file-sharing computer programs such as Limewire or KaZaa.^[1]

Kopiloff used "peer-to-peer" file-sharing programs to scan other people's computers for financial information that he then used to open credit cards which he used to shop online.^[2] He purportedly bought more than $73,000 worth of goods such as iPods and laptop computers online, and then resold those items at half-price; investigators asserted that spent most of the money supporting a gambling habit.^[3]

Authorities said they have identified at least 83 victims — most of whom have teenage children and did not know the file-sharing software was on their computer.^[4] But investigators also said they believe the number of people affected was in the hundreds — and that in all they lost hundreds of thousands of dollars.^[5]

Kopiloff was arrested Wednesday and is charged with mail fraud, accessing a protected computer, and two counts of aggravated identity theft; he did not enter a plea during an appearance in U.S. District Court on Thursday.^[6] A detention hearing was set for Monday.^[7]

Though people have been prosecuted for using peer-to-peer networks to share copyrighted music, movies and software, the Justice Department called this case the first in what experts say is an equally — if not more — troubling matter.^[8] Each day, computer users inadvertently share sensitive files through such programs, from banking statements to legal documents, says Robert Boback, chief executive of Tiversa Inc., a Pennsylvania firm that monitors file-sharing.^[9] Typically it occurs when a user downloads the file-sharing software and accidentally allows it to share all files on a computer, rather than just the music files, in some cases this is the default setting for these programs and only the computer savvy user can find a way to turn off that option.

"If you are running file-sharing software, you are giving criminals the keys to your computer, [c]riminals are getting access to incredibly valuable information," said assistant U.S. attorney Kathryn Warma.^[10]

According to the indictment, Kopiloff began using Limewire and Soulseek about 2 1/2 years ago to search for people who had inadvertently allowed access to their sensitive files. To get the files he needed Kopiloff would allegedly search for "federal tax return," or for student financial aid forms or other financial information.^[11] It is asserted that he then screened the names before opening accounts in their name to ensure that they earned at least $150,000 a year and had good credit.^[12]

He was arrested after one of his alleged victims told his company's security officer — a former Secret Service agent — about how his bank account had been compromised, with someone in western Washington passing bad checks on his account.^[13] The agent forwarded the information to Secret Service agents and police in Seattle.^[14]

Aggravated Identity Theft
Aggravated identity theft occurs when the crime of identity theft is coupled with another felony, here it is mail fraud. Under 18 U.S.C. § 1028A, if a person knowingly and unlawfully transfers, possesses, or uses a means of identification of another person in conjunction with the commission of a set list of felonies, that person will be punished as those felonies provide and that person will additionally be imprisoned for 2 years. If the felony happens to be a terrorism offense, that person will receive an additional 5 years of imprisonment.^[15] Furthermore, that person will not be placed on probation, nor will the term of imprisonment run concurrently, unless the court has been given discretion to do by the Sentencing commission.^[16]

Federal criminal attorney Douglas McNabb has also previously discussed identity theft in his blog, here; and the federal crime of mail fraud has been discussed, here.

---

^[1] Gene Johnson, Man Arrested in Online ID Theft Scheme, Associated Press Newswire, September 7, 2007, available at available at LEXIS, News Library, Wire News Services File.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.
^[10] Id.
^[11] Id.
^[12] Id.
^[13] Id.
^[14] Id.
^[15] 18 U.S.C. § 1028A (2007).
^[16] Id.