Seattle man arrested in file-sharing, ID theft scam

SEATTLE (AP) — A Seattle man has been arrested in what federal authorities described as their first case against someone accused of using file-sharing computer programs to commit identity theft, prosecutors said Thursday.

Gregory Thomas Kopiloff used “peer-to-peer” file-sharing programs to troll other people’s computers for financial information that he then used to open credit cards for an online shopping spree, according to an indictment unsealed Thursday.

Kopiloff bought more than $73,000 worth of goods such as iPods and laptop computers online, then resold those items at half-price and kept the proceeds, according to the four-count indictment. Investigators said he spent most of the money supporting a gambling habit.

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. 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.

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. His court-appointed lawyer said she had not had time to review the charges. A detention hearing was set for Monday.

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.