Market Overview

ERI's John Shegerian Points to Recent CyberHeist of Russian Bank as Example of Massive International Data Theft Wave


Citing the recent theft of nearly $1 million from Russia's PIR Bank by
sophisticated hackers, John Shegerian, Co-Founder and Executive Chairman
of ERI,
the nation's leading recycler of electronic waste and the world's
largest cybersecurity-focused hardware destruction company, has claimed
that individuals, businesses, financial institutions and our national
security are now faced with a steadily increasing wave of similar
attacks. To combat that risk, Shegerian said, it has become urgently
important to responsibly destroy data on discarded hardware as well as
maintain cyberspace data protections.

Earlier this month, a Russian hacker gang known as "MoneyTaker" stole at
least $920,000 from PIR Bank after successfully compromising an
outdated, unsupported Cisco router at a bank branch office and used it
to tunnel into the bank's local network.

MoneyTaker is one of Russia's three most active cybercrime gangs - the
others are Cobalt and Silence - that regularly target the financial
services sector. Security researchers at Group-IB forensics lab report
that this latest hack by MoneyTaker is one of 20 successful attacks on
various financial institutions and law firms across Russia, the United
States, and the United Kingdom by the gang, who often successfully gain
access to banks' networks by exploiting regional branch routers.

Shegerian has warned that this increase in breaches is unfortunately
just the beginning of an expected onslaught of similar crimes.

"Hackers have become so sophisticated that cyber security experts have
had to rally up their game," noted Shegerian. "Unfortunately, we are not
only at risk in cyberspace – outdated hardware has increasingly become
the target of choice. It is urgent that outdated devices be replaced –
and then responsibly destroyed. Here in the US, that process should be
done domestically and should always include complete, physical data
destruction. The hardware security issue is significant now on a number
of levels because it leads to the wholesale liquidation of our national
security and the privacy of the corporations and individuals of the
United States. It is more imperative than ever that we recycle these
devices and do it the right way."

Shegerian added that mining of data on discarded devices is a huge and
unchecked part of the data theft problem, explaining that hardware
hacking is more common than ever because many organizations that claim
to recycle electronics and destroy data are actually shipping the
devices abroad. He also noted that ERI currently provides the only
dually certified nationwide solution offering 100 percent guaranteed
data destruction for consumer electronics devices, e-waste, and hardware.

ERI, the nation's leading recycler of electronic waste and the
world's largest ITAD and cybersecurity-focused hardware destruction
company, is
to de-manufacture and recycle every type of electronic waste in an
environmentally responsible manner. ERI processes more than 275 million
pounds of electronic waste annually at eight locations, serving every
zip code in the United States. For more information about e-waste
recycling and ERI, call 1-800-ERI-DIRECT or visit

View Comments and Join the Discussion!