[Source – thehackernews.com]
The U.S. Department of Justice (DoJ) has charged Robert Westbrook, a 39-year-old British national, in connection with a hacking scheme known as Hack-to-Trade that earned him nearly $3.75 million in illegal profits. Westbrook, who resides in London, was arrested last week and now faces extradition to the United States. He is accused of committing securities fraud, wire fraud, and five counts of computer fraud for his role in the elaborate financial crime, according to the DoJ.
Exploiting Corporate Executive Emails
Between January 2019 and May 2020, Westbrook allegedly orchestrated a sophisticated scheme to unlawfully access the Microsoft 365 accounts of corporate executives in the U.S. By doing so, he obtained confidential, non-public information, which he then used to trade securities for profit. The DoJ stated that Westbrook targeted at least five high-ranking executives from various U.S.-based companies, exploiting information about upcoming earnings announcements.
In several instances, Westbrook set up auto-forwarding rules within the compromised email accounts. This allowed sensitive information to be automatically sent to email accounts under his control, enabling him to act quickly on non-public data. The stolen details were then used to buy and sell securities, allowing him to profit once the information became public.
Concealing His Identity and the SEC’s Response
Westbrook took extensive measures to conceal his identity during the scheme. According to the Securities and Exchange Commission (SEC), he used anonymous email accounts, VPN services, and cryptocurrency, specifically Bitcoin, in an attempt to remain hidden. Despite his efforts to obscure his digital footprint, advanced data analytics, and crypto asset tracing by the SEC’s Crypto Assets and Cyber Unit exposed the fraudulent activities related to the Hack-to-Trade scheme. Jorge G. Tenreiro, acting chief of the unit, emphasized the sophistication of modern investigative technology in uncovering even complex international hacking cases.
Westbrook allegedly manipulated data from five public companies to profit from 14 separate earnings announcements. The DoJ and SEC’s collaboration was key in tracking down the perpetrator, despite his attempts to hide behind encrypted technologies and decentralized financial systems.
Severe Legal Consequences Await
If convicted, Westbrook faces significant legal penalties. The securities fraud charge alone carries a potential prison sentence of up to 20 years, along with a fine of up to $5 million. Additionally, the wire fraud charges also come with a maximum sentence of 20 years and a fine of $250,000 or twice the financial gain or loss resulting from the crime, whichever is greater.
The five counts of computer fraud related to the Hack-to-Trade scheme also carry severe penalties. Each charge could result in a prison sentence of up to five years and a maximum fine of $250,000 or twice the amount gained or lost due to the fraudulent activity. As Westbrook awaits possible extradition to the U.S., he faces the full force of the law for his involvement in one of the more sophisticated cyber fraud cases in recent years.
