A federal jury in the U.S. has convicted 25 people for running an international hacking scheme that defrauded more than 1,000 victims in dozens of U.S. states and 19 countries (including Canada) out of nearly US$215 million (approx. C$292 million).
In a news release from the U.S. Attorney’s Office, evidence and court documents revealed that American individuals, businesses, and organizations were targeted by fraud groups connected to Nigeria in a scheme sometimes referred to as “business email compromise.”
According to CTV News, the group’s primary goal was to gain access to individuals’ email accounts and track their business practices and contacts by monitoring their activities. From there, the information is used to craft fraudulent emails that convince victims to make wire payments under the impression that it is a legitimate business transaction. Once it was wired, the suspects would use a web of fake bank accounts and cash transfer systems to distribute the stolen funds.
The wired ranged in amounts from tens of thousands to millions of dollars, with one company reportedly being defrauded out of $2.4 million by a shell company set up by one of the co-conspirators.
Nearly $50 million of the funds were used to buy cashier’s cheques presented to a Chicago-area money service business called New Dolton Currency Exchange.
The owner and co-defendant Lon Goodman allegedly “routinely” accepted the cheques that contained false information, and continued to do so after being warned multiple times by banks that the cheques were acquired by fraud.
Outside of money, investigators also discovered multiple luxury watches at a residence in Lawrenceville, Georgia, ranging from a Patek Philippe Nautilus worth $45,000 to a Richard Mille Felipe Massa worth $130,000.
Out of the 25 defendants, three were convicted for wire fraud conspiracy, while 22 pleaded guilty to wire fraud and money laundering conspiracy.
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Source: CTV News
