MonsterCloud Owner Charged Over Alleged Ransomware Recovery Fraud Scheme
Summary
MonsterCloud owner Zohar Pinhasi was charged with wire fraud for allegedly paying ransomware groups for decryption keys, then falsely claiming proprietary tools recovered clients’ data and charging them substantially more.
Key points
- The indictment alleges Pinhasi claimed MonsterCloud could decrypt ransomware without paying attackers.
- Prosecutors say he instead paid ransomware groups for decryption keys and charged client organizations to restore their data.
- In one example, an approximately $8,200 ransom payment was followed by a $150,000 charge to the client.
- He allegedly paid more than $8 million in ransoms and charged clients over $19 million.
- Pinhasi faces wire fraud and wire fraud conspiracy charges.
Article Details
- Event Type
- Wire fraud and wire fraud conspiracy charges against the owner of MonsterCloud over an alleged ransomware recovery scheme.
- Impact
- The indictment alleges that clients were charged more than $19 million after MonsterCloud's owner paid over $8 million in ransoms to obtain decryption keys. In one cited instance, an approximately $8,200 ransom payment was followed by a charge of approximately $150,000 to the client.