StubHub Hit by Cyber Fraud Ring

StubHub said thieves got account-holders' login and password information from data breaches at other websites.
7:01 | 07/23/14

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Transcript for StubHub Hit by Cyber Fraud Ring
From New York City to Canada the UK and Russia arrests today after online ticket resale site stub. Claimed more than 16100. Of its users' accounts were -- leading to thousands of fraudulent purchases. Hello I'm Michelle president New York stub -- says the alleged hackers six of them three Russian three Americans did not reach the site security. But that they obtain user information from data breaches at other sites. With more now we're joined by ABC news chief legal. Anchor and analyst Dan Abrams Dan thank you very much. In just last year online companies like target linked in an eBay have all been hacked but how authorities -- potential negligence. By these companies against charging alleged hackers and they do well. Will assure have been their first concern though right now is that targeting the -- write him in the first thing they wanna do and this is the criminal part. -- this is hold -- who's who allegedly did this responsible. On the this -- -- Was there negligence questions come up later and that it tends to be a civil suit right so when you're talking with the criminal case -- -- but the government prosecuting. These various people. Potentially -- jail time. Prison time serious time. When you're talking about was there negligence. That tends to be the individuals. Who were targeted. Com. Possibly going after the entity but remember in this case stub hub is being really. Adamant about the fact it that they're saying we were hacked. Our security protocols work now if you if you read that the release from the DA. It sounds like they're saying yes that's true that that these people were able to get this credit card information elsewhere. Use that to access the -- -- accounts but that once they would they air. They were able to somehow circumvent. Some of the security protocols. Use additional people's credit card information. Fraudulently. As well so while it seems clear -- that's -- -- wasn't quote unquote. Hacked. All of their security protocols. Didn't work perfectly although it is they're trying to be really careful the DA and saying -- double reported this immediately and from -- of perspective. They wanted to to be known. They noticed this they recognize -- they reported it and they're the ones who -- responsible. For bringing these people are helping bring these people to just. Yes stub -- announcing that this all started with unauthorized purchases so how does a -- -- investigation like this come together after stub -- Sort of goes to authorities says this and who ultimately decides where the accused might be tried. What what what makes this interesting as you do -- these these multiple jurisdictions working together. You've got the Russians he got the Canadians. You've got the New York DA off -- DA's office. All of them working together. And you know clearly there were some sort of agreement that will start -- this prosecution in New York. You know theoretically. You could prosecute any where where the victims are located at -- of -- is located -- that are -- -- but clearly there was an agreement here to allow this to move forward in new York and you see. Statements from the Russian authorities and Canadians. One. Complementing the New York authorities have clearly they all work together to make this decision. Is -- becoming more typical for agencies. Countries to work together like this when it comes to cyber. Oh yeah obvious because cyber crime doesn't just impact one area. It's not you know like in the old days where you say the crime occurred here in New York. Someone -- -- -- items stolen in New York. -- this is so wide ranging in this is why it's so important to have cooperation. Amongst governments. In in targeting this because without that it can sometimes be not just more debacle but some -- be impossible. To make this all work. And what does this mean for the victims those sacked counts that were compromised in this case what what did they get out of there to -- -- responded. Oh yeah I mean -- first the ball typically the credit card companies will were fund. -- what were fund their money if their credit cards were used fraudulently. But -- any question. That -- Bob will if if there weren't for some reason. That stub -- will arrange somehow to allow the victims to to get there their money back on IB Stellent. If any of the victims had to sue. To get whatever. Money was stolen from their accounts back. You know we've heard about these warnings we've heard about these companies all sorts of retailers across the board what does it come down to for consumers that we keep also hearing over and over again. On how to protect yourself. What -- -- there -- -- number of ways first of all you know use a reputable but credit card company. Who can help monitor for fraud. Number two you can always. Make sure that you've got your credit. I checked the your sign up with some of these credit checking agencies. So they can warn you if it seems that there's something unusual. Going on with you or your credit -- -- up. But look in this kind of case you want a business and that's vigilant. -- -- stub hub is again trying to make it really clear we were vigilant we're the ones who caught them. We're the ones who saw this and so it's really important that the internal security. At these companies exist as well so I guess part of what I would say is you know choose who you want to do business with. Carefully make sure you trust the business. So even though they you know all businesses pretty much these days say you know. Where we have got to secure service here at -- It's not just about saying we have is secure service as you see in this case they got in here. Not by hacking into it but by actually using credit card information that they were able to get elsewhere and -- then you want a company. Like apparently -- Who's gonna be vigilant about making sure that your information isn't being stolen -- -- your credit card isn't being fraudulently used. ABC news chief legal affairs anchor and analyst Dan Abrams thank -- sure. Keep up with this latest case in real time download ABC news -- star that story for exclusive updates on the go. For now I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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