A Kansas City man has pleaded guilty to federal charges after admitting he hacked into the computer systems of multiple organizations in an attempt to promote his cybersecurity services, according to the U.S. Department of Justice.
Nicholas Michael Kloster, 32, was indicted last year after a series of unauthorized intrusions targeting three separate organizations in 2024, including a local health club, a nonprofit corporation, and his former employer.
Court documents reveal that Kloster’s methods were audacious, involving physical breaches and digital exploits rather than sophisticated cyberattacks.
In one incident, Kloster entered a restricted area of a health club late at night and accessed a computer connected to the company’s network.
He then manipulated the system to reduce his gym membership fee to just $1, deleted his photograph from the company’s database, and stole a staff member’s name tag.
The following day, Kloster emailed the gym’s owner, admitting to the hack and offering his cybersecurity consulting services, claiming to have helped over 30 businesses in the Kansas City area.
He attached his resume and detailed his ability to bypass the gym’s security systems, even boasting about his access to security cameras and router settings.
Weeks later, Kloster posted a screenshot on social media displaying control over the gym’s security cameras, further publicizing his unauthorized access.
Kloster’s hacking extended to a nonprofit organization in May 2024, where he physically entered a non-public area and used a boot disk to bypass authentication on a computer.
He changed user account passwords, installed a virtual private network (VPN) for future remote access, and caused significant damage, forcing the nonprofit to spend thousands on remediation and security upgrades.
Additionally, Kloster misused a company credit card from his former employer to purchase hacking tools, including thumb drives designed to exploit vulnerabilities.
His employment was terminated after these unauthorized purchases came to light.
Kloster now faces up to five years in federal prison without parole, a fine of up to $250,000, three years of supervised release, and an order of restitution. Sentencing will be determined by the court following a presentence investigation.
The case was investigated by the FBI and Kansas City Police and is being prosecuted by Assistant U.S. Attorneys Nicholas Heberle and Patrick D. Daly.
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