Israeli-American Cyber Firm Owner Charged With Multi-Million Dollar Fraud
Translated & summarized from NEWSru Israel by baba
Federal prosecutors in the U.S. have charged Zoar Pinhasi, an Israeli-American owner of the data recovery firm MonsterCloud, with fraud. The company allegedly posed as a ransomware recovery specialist but secretly paid hackers, then charged clients vastly inflated fees. Operating from 2018 to 2023, MonsterCloud collected over $19 million from clients while paying hackers more than $8 million. Pinhasi faces up to 20 years in prison per charge and has pleaded not guilty.
The story in 5 lines · by baba
- Zoar Pinhasi, owner of MonsterCloud, faces U.S. federal fraud charges for allegedly deceiving clients.
- MonsterCloud claimed to recover data without paying hackers but secretly paid ransoms.
- The company collected over $19 million from clients between June 2018 and June 2023.
- Over $8 million was paid to hackers during the alleged fraudulent scheme.
- Pinhasi faces up to 20 years per charge and was released on $2 million bail.
Federal prosecutors in the United States have charged Zoar Pinhasi, a 50-year-old dual citizen of Israel and the U.S. and owner of Florida-based data recovery company MonsterCloud, with fraud. The company specialized in recovering data after ransomware attacks. Prosecutors allege that MonsterCloud falsely advertised its ability to restore encrypted files without paying ransoms, claiming to use proprietary tools and advanced decryption methods. In reality, the company secretly paid the cybercriminals themselves.
Pinhasi, who also used the aliases Zack Silver and Zack Green, is accused of contacting cybercriminals, obtaining decryption keys, and then charging clients significantly inflated prices. In one instance in August 2023, MonsterCloud paid a hacker approximately $8,200 but billed a client around $150,000. The scheme allegedly operated from June 2018 to June 2023.
During this period, MonsterCloud collected over $19 million from hundreds of companies in the U.S. and Canada, while paying out more than $8 million to hackers. In another case, a ransom of about $236,000 led to a client being billed approximately $380,000.
Pinhasi faces charges of conspiracy to commit wire fraud and two counts of wire fraud. Each charge carries a maximum penalty of 20 years in prison. He has pleaded not guilty and was released on a $2 million bail.
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