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Thursday, January 23, 2025

Kansas City man indicted for alleged hacking into nonprofit and health club

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U.S. Attorney Teresa A. Moore | US Attorney - Western District of Missouri

U.S. Attorney Teresa A. Moore | US Attorney - Western District of Missouri

A Kansas City man, Nicholas Michael Kloster, 31, has been indicted by a federal grand jury for hacking into computer systems at an area nonprofit and a health club business. The indictment was returned under seal on November 19 and was unsealed following Kloster's arrest.

Kloster faces charges of accessing a protected computer without authorization to obtain information. He allegedly entered the premises of a business known as Company Victim 2, which operates health clubs in Kansas and Missouri, on April 26, 2024. The next day, he emailed one of the owners claiming access to their computer system and attached his resume.

The indictment states that after the intrusion, employees noticed changes related to Kloster’s gym membership fee and network photograph. Additionally, it is alleged that he stole a staff nametag and later posted an image showing control over security cameras with a chatbox message reading “how to get a company to use your security service.”

Kloster is also charged with causing reckless damage during unauthorized access at another organization identified as Company Victim 3. On May 20, 2024, he allegedly accessed restricted areas and used a boot disk to circumvent password requirements on their network. This allowed him to install a virtual private network causing losses exceeding $5,000.

Additionally, the indictment mentions Kloster's employment with Company Victim 1 during March and April 2024. It alleges misuse of a company credit card for personal purchases including items advertised for hacking purposes.

The charges are accusations requiring evidence presentation before a federal trial jury tasked with determining guilt or innocence.

Assistant U.S. Attorneys Patrick Daly and Nicholas Heberle are prosecuting this case which was investigated by the FBI and the Kansas City Police Department.

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