[00:03] (3.20s)
of hacking into Pentagon and Nazi
[00:05] (5.04s)
systems. 40 million credit card and
[00:07] (7.20s)
debit number stolen.
[00:11] (11.44s)
On its surface, the International Space
[00:13] (13.76s)
Station heats up to 120° C.
[00:18] (18.72s)
The onboard temperature and humidity
[00:20] (20.40s)
control system keeps the inside at the
[00:22] (22.32s)
right temperature for human survival.
[00:26] (26.00s)
If it fails, the astronauts stationed
[00:27] (27.92s)
here would literally be cooked. And just
[00:30] (30.88s)
now, a hacker has gotten hold of the
[00:33] (33.68s)
system software.
[00:37] (37.84s)
He's not a hostile government agent,
[00:40] (40.40s)
just a 15-year-old in his bedroom. He
[00:43] (43.20s)
successfully gained access to 13 NASA
[00:45] (45.28s)
computers.
[00:46] (46.96s)
This teenager is a prodigy, one of the
[00:49] (49.52s)
most talented young hackers the world
[00:51] (51.04s)
has ever seen.
[00:53] (53.36s)
And he didn't just break into NASA, he
[00:55] (55.28s)
also hacked the Pentagon.
[00:57] (57.84s)
From his point of view, he's just toying
[01:01] (61.52s)
From the government's perspective, he's
[01:03] (63.28s)
a national security threat.
[01:05] (65.12s)
Largest identity theft case ever.
[01:07] (67.36s)
Largest data breach in US history
[01:09] (69.28s)
that affected millions of people.
[01:11] (71.60s)
One that humiliated them over and over
[01:13] (73.76s)
again and one that they will go after
[01:16] (76.56s)
ruthlessly.
[01:21] (81.28s)
Confirmed.
[01:27] (87.12s)
It's the year 1989, a suburban village
[01:30] (90.08s)
in South Florida.
[01:33] (93.20s)
This is Jonathan James. He is 6 years
[01:37] (97.20s)
While other kids are outside playing
[01:38] (98.72s)
tag, he's busy inside, glued to the
[01:41] (101.04s)
family's computer. Mostly, he's just
[01:43] (103.60s)
playing games. His parents are worried
[01:46] (106.24s)
about his obsession. His dad is a
[01:48] (108.72s)
programmer. At one point, he installs
[01:50] (110.80s)
parental protection on the computer, but
[01:53] (113.52s)
Jonathan just breaks through it.
[01:57] (117.20s)
In his early teens, he starts reading
[01:59] (119.12s)
books in the programming language C and
[02:00] (120.88s)
the operating system Unix, a precursor
[02:03] (123.20s)
for Linux and Mac OS. He studies source
[02:06] (126.16s)
code extensively and talks to other
[02:08] (128.00s)
computer enthusiasts.
[02:10] (130.32s)
He spends countless hours in front of
[02:11] (131.84s)
the computer, often until late into the
[02:17] (137.04s)
One afternoon, Jonathan uninstalls
[02:18] (138.88s)
Windows from his family PC, then
[02:20] (140.96s)
installs Linux. No one asked him to. No
[02:24] (144.16s)
one could stop him.
[02:27] (147.04s)
His computer time regularly leads to
[02:28] (148.96s)
arguments with his parents. It doesn't
[02:31] (151.12s)
get any better once he gets his own PC.
[02:34] (154.48s)
After a while, his parents decide to
[02:36] (156.16s)
confiscate it. Jonathan runs away and
[02:38] (158.64s)
says he's not coming home until he gets
[02:40] (160.40s)
it back.
[02:43] (163.20s)
Soon it won't be his parents who are
[02:44] (164.72s)
trying to keep him away from a computer,
[02:46] (166.64s)
but the US government.
[02:48] (168.96s)
[Applause]
[02:49] (169.72s)
[Music]
[02:55] (175.84s)
At 15, Jonathan has long morphed from
[02:58] (178.16s)
curious pre-teen to full-blown hacker,
[03:00] (180.96s)
one of the youngest and best at the
[03:03] (183.20s)
time. Online, he's known under his
[03:05] (185.36s)
alias, Comrade. Jonathan really enjoys
[03:09] (189.04s)
messing with systems, not to break them,
[03:11] (191.44s)
but to beat them. It's a power thing, a
[03:14] (194.48s)
control thing. He likes the thrill of
[03:16] (196.64s)
it. The tougher the system, the more it
[03:19] (199.20s)
pulls him in. He goes in, proves it's
[03:22] (202.08s)
not so secure after all, and moves on.
[03:24] (204.56s)
He doesn't care much about the stuff
[03:25] (205.92s)
inside. He doesn't steal data, delete
[03:28] (208.32s)
files, or spread viruses. In fact,
[03:31] (211.12s)
sometimes he does the opposite. He'll
[03:33] (213.28s)
break in, then send a polite little
[03:34] (214.96s)
email to the system admin. Hey, your
[03:37] (217.28s)
setup's got holes. Here's where. Here's
[03:39] (219.60s)
how to fix it.
[03:41] (221.43s)
[Music]
[03:47] (227.52s)
In the summer of 1999, Jonathan is
[03:49] (229.92s)
looking for a new challenge. So, he
[03:51] (231.68s)
decides to hack NASA, more specifically
[03:54] (234.32s)
the AY's Marshall Space Flight Center in
[03:56] (236.56s)
Huntsville, Alabama.
[03:59] (239.44s)
He gains access to 13 NASA computers.
[04:02] (242.32s)
It's unclear how, and this time,
[04:04] (244.32s)
Jonathan decides to actually take
[04:05] (245.92s)
something. He downloads proprietary
[04:08] (248.32s)
software valued at $1.7 million.
[04:12] (252.48s)
It's the software for the temperature
[04:13] (253.92s)
and humidity control of the ISS.
[04:18] (258.00s)
In an interview, Jonathan will later
[04:19] (259.76s)
say, "The code itself was crappy.
[04:22] (262.16s)
Certainly not worth $1.7 million like
[04:24] (264.40s)
they claimed. The only reason I was
[04:26] (266.40s)
downloading the source code in the first
[04:27] (267.68s)
place was because I was studying C
[04:29] (269.28s)
programming. And what better way to
[04:30] (270.88s)
learn than reading software written by
[04:32] (272.48s)
the government."
[04:34] (274.48s)
Just downloading the software didn't
[04:35] (275.84s)
give Jonathan remote control over the
[04:37] (277.60s)
ISS systems. Having the source code is
[04:40] (280.40s)
one thing, but actually sending commands
[04:42] (282.08s)
to his spacecraft is a whole different
[04:43] (283.92s)
story. It would have taken more steps to
[04:46] (286.24s)
actually access the system. But this
[04:48] (288.80s)
hack is still a massive security breach.
[04:52] (292.72s)
When NASA finds out, they have to shut
[04:54] (294.72s)
down their systems for 3 weeks,
[04:56] (296.40s)
resulting in damages of around $40,000.
[05:01] (301.84s)
Two months later, Jonathan takes up his
[05:03] (303.68s)
next challenge, hacking the Pentagon.
[05:06] (306.32s)
More specifically, their Defense Threat
[05:08] (308.24s)
Reduction Agency. It analyzes and deals
[05:10] (310.64s)
with potential threats to the US from
[05:12] (312.48s)
nuclear, chemical, and biological
[05:14] (314.48s)
weapons.
[05:16] (316.16s)
Jonathan gains access to a server in
[05:17] (317.92s)
Bellis, Virginia, and installs a back
[05:19] (319.84s)
door. Again, it is unknown how he
[05:22] (322.64s)
actually pulled this off. Once inside
[05:25] (325.04s)
DTR systems, he intercepts more than
[05:27] (327.28s)
3,300 messages to and from DTR staff. He
[05:31] (331.28s)
retrieves 19 usernames and passwords of
[05:33] (333.36s)
employees, at least 10 of which have
[05:35] (335.76s)
access to military computers.
[05:39] (339.20s)
Jonathan thinks his hacks are no big
[05:40] (340.88s)
deal. To him, they are quote just
[05:43] (343.20s)
harmless exploration. Law enforcement
[05:45] (345.92s)
disagrees.
[05:50] (350.74s)
[Music]
[05:52] (352.16s)
It's an early morning in January 2000.
[05:54] (354.80s)
Last month, Jonathan turned 16. By now,
[05:58] (358.00s)
he has not one but multiple computers of
[06:00] (360.08s)
his own. He is well connected with other
[06:01] (361.92s)
hackers, sharing tips and tricks. He
[06:04] (364.72s)
also loves Star Trek. His mother comes
[06:07] (367.60s)
into the room and wakes him up.
[06:09] (369.76s)
Jonathan, honey, the FBI is at the door.
[06:16] (376.24s)
They're here for him.
[06:18] (378.80s)
They raid his family home and take five
[06:20] (380.72s)
computers. They also take his Palm
[06:22] (382.88s)
Pilot, some CDs, and his Star Trek book.
[06:26] (386.00s)
Bull choice for evidence.
[06:30] (390.08s)
Jonathan is questioned by the officers.
[06:32] (392.80s)
He admits everything and promises to
[06:34] (394.48s)
never do it again. Then he hears nothing
[06:36] (396.96s)
for 3 months.
[06:39] (399.12s)
And then the authorities press charges
[06:42] (402.00s)
and his life begins to change
[06:43] (403.36s)
dramatically.
[06:47] (407.44s)
Jonathan James becomes the youngest
[06:49] (409.12s)
person ever convicted of violating cyber
[06:51] (411.20s)
crime laws in the US. If Jonathan had
[06:54] (414.00s)
been an adult, he might have ended up
[06:55] (415.60s)
with a decade behind bars, but he's
[06:58] (418.24s)
still a minor. So, the US District Court
[07:00] (420.80s)
in Miami puts him on 6 months house
[07:02] (422.64s)
arrest.
[07:04] (424.24s)
Jonathan is no longer allowed to use his
[07:05] (425.92s)
computers in his free time, and even
[07:08] (428.00s)
worse, he has to write letters of
[07:09] (429.68s)
apology to NASA and the Department of
[07:11] (431.44s)
Defense. Later, he tests positive for
[07:14] (434.08s)
drugs. a clear probation violation. So,
[07:16] (436.96s)
he gets sent to a juvenile detention
[07:18] (438.56s)
facility for 6 months. He's scared about
[07:21] (441.04s)
spending time there with actual
[07:22] (442.40s)
criminals.
[07:25] (445.20s)
His father will later say that prison
[07:26] (446.80s)
changed Jonathan. It made him strangely
[07:32] (452.40s)
Looking back, Jonathan regrets the whole
[07:34] (454.32s)
thing. What started as fun challenges
[07:36] (456.40s)
ended with him behind bars. The thrills
[07:39] (459.04s)
weren't worth it. Not even close. From
[07:41] (461.84s)
that point on, he decides to leave
[07:43] (463.44s)
hacking behind for good. But not
[07:45] (465.76s)
everyone believes him. And a few years
[07:47] (467.92s)
later, his past life will catch up with
[07:52] (472.40s)
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[Music]
[09:03] (543.20s)
This is Albert Gonzalez. He's got a few
[09:05] (545.76s)
things in common with Jonathan James. He
[09:08] (548.24s)
was also born in the8s. He too is a
[09:10] (550.64s)
self-taught hacker. When he was 14, he
[09:13] (553.20s)
also broke into NASA systems. And as a
[09:16] (556.08s)
consequence, he also got a visit by the
[09:19] (559.84s)
But that didn't stop Gonzalez from
[09:21] (561.36s)
hacking. Far from it. We don't know if
[09:24] (564.24s)
Albert Gonzalez and Jonathan James knew
[09:26] (566.08s)
each other, but they had a common hacker
[09:28] (568.08s)
friend called Christopher Scott.
[09:30] (570.08s)
Gonzalez went by many aliases on the
[09:31] (571.92s)
internet, but his favorite was Soup
[09:33] (573.92s)
Nazi, a reference to a Seinfeld episode.
[09:36] (576.56s)
You want bread?
[09:37] (577.52s)
Yes, please.
[09:40] (580.24s)
In early 2000s, Gonzalez stumbled across
[09:42] (582.40s)
Shadow Crew, a marketplace for
[09:44] (584.24s)
trafficking stolen credit and bank card
[09:45] (585.84s)
numbers and identity information. And
[09:48] (588.40s)
even though the feds are having an eye
[09:49] (589.76s)
on him, he gets involved.
[09:52] (592.48s)
In 2003, he gets caught trying to pull
[09:54] (594.88s)
cash from an ATM using fake credit
[09:56] (596.80s)
cards. To avoid jail time, he agrees to
[09:59] (599.60s)
work with the Secret Service. Soon, he
[10:02] (602.00s)
helps them bust a bunch of shadow crew
[10:03] (603.52s)
members. You'd expect that his work as
[10:05] (605.52s)
an informant for the Secret Service
[10:07] (607.04s)
would stop him from any criminal
[10:08] (608.48s)
activity. But well, in his view, the
[10:11] (611.28s)
salary from the Secret Service is too
[10:12] (612.96s)
low. So, he gets back to what he does
[10:15] (615.04s)
best, hacking. He sets up an elaborate
[10:18] (618.08s)
scheme he calls get rich or die trying.
[10:20] (620.96s)
The scheme will turn into one of the
[10:22] (622.24s)
world's biggest cases of identity theft.
[10:24] (624.40s)
It'll ruin his life, but Jonathan James
[10:27] (627.20s)
will end up dead.
[10:29] (629.64s)
[Music]
[10:34] (634.88s)
This is Scott, who is both friends with
[10:36] (636.80s)
Gonzalez and James. Next to him, said
[10:39] (639.28s)
someone who, according to criminal
[10:40] (640.72s)
reports, is only known as JJ.
[10:43] (643.84s)
They're doing something called war
[10:45] (645.20s)
driving. It's a simple technique. You
[10:48] (648.16s)
drive around in your car and park close
[10:49] (649.92s)
to companies. You only need your laptop
[10:52] (652.00s)
and a high power radio antenna. Once
[10:54] (654.40s)
you're close enough, you check for
[10:55] (655.60s)
vulnerabilities in their Wi-Fi network.
[10:58] (658.48s)
Back then, most companies weren't
[10:59] (659.92s)
exactly taking cyber security seriously.
[11:02] (662.96s)
Inside Office Max, people are buying
[11:04] (664.56s)
Post-its and whiteboard markers in four
[11:06] (666.32s)
colors, gearing up for a meeting that
[11:08] (668.08s)
probably could have been an email.
[11:10] (670.00s)
Outside, Scott and JJ access the store's
[11:12] (672.40s)
Wi-Fi and through that enter its
[11:14] (674.48s)
systems. Once inside, they install a
[11:17] (677.04s)
sniffer program which captures and
[11:18] (678.80s)
downloads credit and debit card data
[11:20] (680.40s)
from customers.
[11:22] (682.32s)
Then they send the data to Gonzalez. He
[11:24] (684.72s)
forwards it to another hacker who
[11:26] (686.16s)
decrypts the PIN codes. Gonzalez and his
[11:28] (688.64s)
crew don't just sell the stolen card
[11:30] (690.08s)
info. They encode them onto blank
[11:31] (691.92s)
magnetic strip cards and use those to
[11:33] (693.44s)
pull tens of thousands of dollars out of
[11:37] (697.36s)
After the Office Max breach, banks were
[11:39] (699.12s)
apparently forced to reissue around
[11:40] (700.40s)
200,000 cards. And this hack wasn't a
[11:43] (703.12s)
one-off. Over the span of the next three
[11:45] (705.20s)
years, Gonzalez and his crew hack into
[11:46] (706.96s)
several major US companies, including
[11:48] (708.88s)
BJ's Wholesale Club, Boston Market,
[11:51] (711.36s)
Barnes & Noble, Forever 21, and others.
[11:54] (714.08s)
Their biggest credit card data heist
[11:55] (715.60s)
happens at TJX. That's the parent
[11:57] (717.44s)
company of TJ Maxx, Marshalls,
[11:59] (719.44s)
HomeGoods, and others. Around 96 million
[12:02] (722.00s)
TJX customers are affected by the theft
[12:03] (723.84s)
of their credit and debit card info.
[12:08] (728.40s)
At the time, these attacks make up the
[12:10] (730.32s)
largest case of identity theft in US
[12:12] (732.08s)
history. The crew stole the data of
[12:14] (734.32s)
around 180 million credit and debit
[12:16] (736.24s)
cards. The total damage of all infected
[12:18] (738.56s)
companies amounts to roughly $400
[12:20] (740.40s)
million US in reimbursements, legal
[12:22] (742.56s)
costs, and forensic fees.
[12:24] (744.24s)
There's a major break in a credit card
[12:26] (746.16s)
scam that affected millions of people.
[12:28] (748.72s)
Experts say this man's arrest may lead
[12:31] (751.84s)
to the kingpin behind the biggest credit
[12:34] (754.48s)
card ID theft in history.
[12:37] (757.60s)
The Secret Service investigates and at
[12:39] (759.92s)
one point they realize that their very
[12:42] (762.08s)
own informant is not only involved but
[12:44] (764.48s)
is a mastermind behind the TJX heist.
[12:53] (773.44s)
May 2008, Pinerest, Florida. Jonathan
[12:56] (776.72s)
James is 24 years old now.
[12:58] (778.93s)
[Music]
[13:00] (780.32s)
He doesn't go to college. He doesn't
[13:01] (781.84s)
have a job. His mother died of breast
[13:05] (785.44s)
cancer 6 years ago.
[13:08] (788.96s)
Together with his brother, he still
[13:10] (790.32s)
lives in the house he grew up in.
[13:13] (793.28s)
He apparently suffers from depression.
[13:16] (796.88s)
Overall, he's living a withdrawn life
[13:18] (798.72s)
and is retired from hacking.
[13:21] (801.44s)
But today, he'll get another surprise
[13:25] (805.60s)
This time, it's the Secret Service. They
[13:27] (807.84s)
raid the family's house just like the
[13:29] (809.36s)
FBI had done 8 years ago.
[13:31] (811.92s)
They drew a connection from Gonzalez to
[13:33] (813.52s)
Christopher Scott to him. They suspect
[13:35] (815.76s)
that JJ is short for Jonathan James and
[13:37] (817.84s)
that he's part of the hacker group. The
[13:40] (820.08s)
agents go through Jonathan's stuff.
[13:43] (823.20s)
They find a suicide note he had written
[13:44] (824.80s)
years ago and a gun.
[13:47] (827.36s)
We don't know if the agents offer him
[13:48] (828.80s)
psychological help, but according to
[13:50] (830.80s)
Jonathan, they don't confiscate the
[13:52] (832.24s)
weapon.
[13:53] (833.24s)
[Music]
[13:56] (836.80s)
Jonathan is shocked. He swears that he
[13:58] (838.64s)
has nothing to do with the TJX case.
[14:00] (840.48s)
What's going on?
[14:02] (842.88s)
On the subpoena, he's able to find some
[14:04] (844.64s)
answers. He reads about this guy, Albert
[14:07] (847.68s)
Gonzalez.
[14:09] (849.44s)
Jonathan recognizes him by another
[14:10] (850.88s)
nickname he used online.
[14:13] (853.44s)
Gonzalez has been working as an
[14:14] (854.64s)
informant for the feds since 2003. For 5
[14:17] (857.92s)
years, Gonzalez used Scott to pull off
[14:19] (859.76s)
his hacks while simultaneously writing
[14:21] (861.76s)
out other hackers to the feds to stay in
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their good graces.
[14:26] (866.16s)
Jonathan is sure that Gonzalez is now
[14:27] (867.92s)
trying to pin the hacks on Scott.
[14:30] (870.40s)
and he is getting a bad feeling. He
[14:32] (872.48s)
thinks they'll be a much more appealing
[14:33] (873.84s)
target than Chris.
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It might not matter to the feds that
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he's innocent. Even though, in his
[14:40] (880.24s)
words, Scott and Gonzalez are the most
[14:42] (882.32s)
destructive, dangerous hackers the feds
[14:44] (884.16s)
ever caught. They'll let them off easy
[14:46] (886.00s)
because he's a juicier target. That
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would please the public more.
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In Jonathan's mind, the picture is
[14:52] (892.56s)
clear. They need a scapegoat. Not
[14:55] (895.36s)
Gonzalez, not Scott, not the one who
[14:57] (897.68s)
actually caused the damage, but him,
[15:00] (900.08s)
Jonathan.
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In his words, the feds played dirty. He
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holds these beliefs for a reason.
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There's this paper that has made rounds
[15:09] (909.84s)
in the hacker scene, Agent Steel's Guide
[15:11] (911.92s)
to Getting Busted. It's basically a
[15:13] (913.84s)
survival guide for hackers written by
[15:15] (915.68s)
one who ended up in prison.
[15:18] (918.16s)
Agent Steel's real name was Justin
[15:19] (919.76s)
Tanner Peterson. He was an American
[15:21] (921.68s)
hacker who worked as an informant for
[15:23] (923.36s)
the feds while continuing to commit
[15:25] (925.12s)
crimes.
[15:27] (927.12s)
Agent Steel writes, "The criminal
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justice system is a game to be played
[15:30] (930.72s)
both by prosecution and defense. And if
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you have to be a player, you'd be wise
[15:34] (934.48s)
to learn the rules of engagement." He
[15:37] (937.04s)
makes it clear that law enforcement
[15:38] (938.24s)
isn't always fair. They play dirty and
[15:40] (940.96s)
will do just about anything, including
[15:42] (942.48s)
lie, to win their case.
[15:44] (944.88s)
Jonathan read this guide and he knows
[15:46] (946.64s)
that Gonzalez is working with the feds,
[15:48] (948.56s)
so he's convinced he's going to prison
[15:50] (950.56s)
even though he's innocent.
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The first time was already terrifying.
[15:55] (955.28s)
He doesn't want to go through that
[16:03] (963.15s)
[Music]
[16:06] (966.80s)
On May 18th, 2008, 2 weeks after agents
[16:09] (969.44s)
raided his home, Jonathan was found dead
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in his home after a self-inflicted
[16:12] (972.80s)
gunshot wound.
[16:14] (974.44s)
[Music]
[16:16] (976.32s)
He wrote a note. There are messages to
[16:18] (978.48s)
his family and friends, passwords to his
[16:20] (980.40s)
accounts. In this letter, he also
[16:22] (982.88s)
expresses his opinion on the
[16:24] (984.08s)
authorities. He writes, "I have no faith
[16:26] (986.88s)
in the justice system. Perhaps my
[16:29] (989.20s)
actions today in this letter will send a
[16:31] (991.44s)
stronger message to the public. Either
[16:33] (993.60s)
way, I have lost control over the
[16:35] (995.28s)
situation, and this is my only way to
[16:37] (997.12s)
regain control." Remember,
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it's not whether you win or lose. It's
[16:42] (1002.56s)
whether I win or lose. And sitting in
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jail for 20, 10, or even 5 years for a
[16:47] (1007.68s)
crime I didn't commit is not me winning.
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I die free.
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[Music]
[16:57] (1017.84s)
In March 2010, Albert Gonzalez was
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sentenced to 20 years in federal prison
[17:01] (1021.52s)
for his role in the series of hacks. In
[17:03] (1023.92s)
the backyard of his parents, the Secret
[17:05] (1025.68s)
Service seized a barrel containing $1.2
[17:07] (1027.84s)
2 million in cash. Christopher Scott was
[17:11] (1031.28s)
sentenced to 7 years in prison for his
[17:12] (1032.80s)
role in the attacks. It's likely that
[17:15] (1035.20s)
the pseudonym JJ didn't refer to
[17:16] (1036.80s)
Jonathan James, but rather to Steven
[17:18] (1038.72s)
Watt, another figure convicted in the
[17:20] (1040.80s)
TJX case, who was known to use the alias
[17:22] (1042.88s)
Jim Jones online.
[17:25] (1045.26s)
[Music]
[17:27] (1047.20s)
At the point of his death, Jonathan
[17:28] (1048.72s)
neither had been arrested, charged,
[17:30] (1050.24s)
tried, nor sentenced. It seems like
[17:32] (1052.24s)
knowing that Gonzalez had worked with
[17:33] (1053.36s)
the Secret Service fueled Jonathan's
[17:35] (1055.12s)
fear to become a scapegoat and end up in
[17:37] (1057.12s)
prison.
[17:40] (1060.24s)
Jonathan James wasn't some criminal
[17:41] (1061.92s)
mastermind. He was a teenager with a
[17:44] (1064.16s)
rare talent and a deep curiosity for how
[17:46] (1066.32s)
systems work. After he hacked into them,
[17:48] (1068.56s)
he often offered to help fix them.
[17:53] (1073.60s)
Instead of guiding such talents, helping
[17:55] (1075.36s)
to channel them into something good, the
[17:57] (1077.28s)
justice system decided to make an
[17:58] (1078.72s)
example out of him.
[18:00] (1080.75s)
[Music]