US federal prosecutors have indicted five people accused of stealing $11 million worth of cryptocurrency and sensitive data from people and businesses in multiple countries.

On November 20, 2024, California US Attorney’s Office Disclosure of charges against the group, alleging that they use phishing scams and SIM swapping techniques to illegally access their victims’ accounts.

The hacking group known as “Scattered Spider” targeted at least 29 people, with one losing more than $6.3 million in cryptocurrency. Prosecutors also said the group targeted 45 companies in the US, Canada, India and the UK.

Defendants Ahmed Hussam Alden Elbadawi, 23, of Texas, Noah Urban, 20, of Florida, Evans Osebo, 20, of Dallas, Joel Evans, 25, of North Carolina, and Tyler Buchanan, 22, of Scotland, were indicted on federal charges. The government filed an indictment. Grand jury indictment with one count of conspiracy, one count of conspiracy to commit wire fraud, and one count of aggravated identity theft.

If convicted, they each face up to 20 years in federal prison for conspiracy to commit wire fraud, plus a maximum of five years for conspiracy, and felony identity theft. A mandatory two-year sentence can be imposed. Continually

Scattered Spider Theft: How Did They Do It?

Court documents state that the defendants conducted the phishing attacks from September 2021 to April 2023. The Scattered Spider hackers created a sophisticated phishing scheme by sending mass short message service (SMS) text messages to the mobile phones of employees of several affected companies.

The text messages typically warned employees that their accounts would be deactivated, and directed them to fake websites that appeared to be legitimate pages of victim companies or their trusted suppliers. . These fraudulent sites were designed to trick recipients into revealing sensitive information, including their account login details.

Multiple employees visited the fake website, entered their login credentials, and in some cases, completed the identity verification process by responding to a two-factor authentication request sent to their mobile devices.

Using stolen information obtained from infected companies, the Scattered Spider group gained unauthorized access to the cryptocurrency accounts and wallets of multiple individuals, then stole millions of dollars worth of virtual currency.

Increased risk of phishing scams

The growing notoriety of phishing scams is a major concern in the crypto world. As more individuals and institutions invest in cryptocurrencies, the pool of potential victims expands.

The anonymity and irreversibility of cryptocurrency transactions appeals to scammers, who are often unaware of victim security best practices. However, even Experienced Crypto Investor They have become victims of fraudsters.

Earlier this month, an anonymous investor used the handle “Steal in the Game.” Details About a phishing attack on social media that cost $6.09 million. Crypto investigative firm ScamSniffer reported that the victim clicked on a fake Zoom invite link, which led to a fake website designed to collect sensitive wallet details.

Federal agencies, including the Federal Bureau of Investigation (FBI), the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC), have stepped up efforts to combat crypto-related fraud, particularly phishing scams. are These measures are aimed at identifying and prosecuting those involved in fraudulent activities within the cryptocurrency sector.

In parallel, regulatory bodies such as the SEC and the Commodity Futures Trading Commission (CFTC) are devoting significant resources to monitoring crypto markets. Their focus is on developing a strong regulatory framework that enhances investor protections and curbs the spread of scams.

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Michaela has no crypto positions and no crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. Sheba Magazine and The Sheba Daily are the official media and publications of the Sheba Inno Cryptocurrency Project. Readers are encouraged to do their own research and consult with a qualified financial advisor before making any investment decisions.

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