Federal Reserve contractor charged with source code theft

A developer faces up to 10 years in prison for copying the source code of a sensitive financial program

A U.S. Federal Reserve contractor has been charged with copying the source code of software that keeps track of large exchanges of money between U.S. government agencies.

Bo Zhang, who lives in Queens, New York, worked for the Reserve Bank of New York as a computer programmer on behalf of an unnamed third-party contracting firm. He was arrested Wednesday and released on US$200,000 bail. He faces up to 10 years in prison and a $250,000 fine.

"Zhang took advantage of the access that came with his trusted position to steal highly sensitive proprietary software," said Janice Fedarcyk, Federal Bureau of Investigation assistant director-in-charge, in a statement.

Although Zhang is a Chinese national employed in the U.S. through a work visa, the FBI gave no indication that the alleged theft was espionage. "His intentions with regard to that software are immaterial. Stealing it and copying it threatened the security of vitally important source code," Fedarcyk said.

The program he allegedly copied, the Government-wide Accounting and Reporting Program (GWA), keeps track of money that is transferred among different U.S. government agencies. The U.S. Treasury Department authored the program, which cost almost $10 million to develop.

The Federal Reserve first discovered the breach and turned it over to the FBI.

The Federal Reserve Board of New York maintained GWA in an access-controlled electronic repository, along with the source code for the program. In July 2011, Zhang allegedly copied the code onto a portable hard drive and transferred it to his private office computer as well as onto a number of personal computers. According to the FBI, Zhang admitted that he had used the code for his private business, teaching computer programming.

Insider theft of software is becoming a more prevalent problem for large enterprises now that handheld thumb drives capable of storing gigabytes of information are widely available, said Keith Kupferschmid, senior vice president for intellectual property policy for the Software and Information Industry Association. Asset management software can help organizations more closely monitor against such cases of theft, though organizations may still be vulnerable to maliciously minded insiders who intimately know how the organization's systems work.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?