Florida cybersecurity owner accused of secretly paying hackers over $8 million
Zohar Pinhasi, the owner of a Florida-based cybersecurity firm, has been indicted for wire fraud. Prosecutors allege he falsely claimed to have proprietary decryption tools while secretly paying hackers to resolve ransomware attacks for his clients.
Why it matters
This case highlights the risks of hiring third-party ransomware remediation services and the potential for fraud within the cybersecurity industry.
A Florida cybersecurity company owner who allegedly told ransomware victims that his firm could recover encrypted data without paying hackers is now facing federal wire fraud charges. According to the US Department of Justice (DOJ), Zohar Pinhasi, 50, owner of ransomware remediation company MonsterCloud, claimed to have proprietary tools and advanced techniques for decrypting files. Prosecutors allege that his company instead paid the cybercriminals behind the attacks and charged clients substantially more for the recovery. The DOJ said Pinhasi allegedly collected more than $19 million from clients while secretly paying over $8 million in ransom.What prosecutors allegePinhasi, who is also known as “Zack Silver” and “Zack Green,” was arraigned in federal court in Brooklyn on October 7 after being indicted by a grand jury in the Eastern District of New York on September 23.
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