US Authorities Charge Five Criminals in $11 Million Crypto Phishing Scheme

As a seasoned researcher with over two decades of experience in cybersecurity, I’ve seen my fair share of cybercriminal activities, but the Scattered Spider’s $11 million phishing operation is a stark reminder that no one is immune to such attacks, not even tech-savvy individuals. The group’s use of smishing, a simple yet insidious attack vector, showcases their sophistication and the need for continuous vigilance in our digital world.


A band of digital crooks known as Scattered Spider are facing charges for masterminding a $11 million scam involving phishing tactics, which compromised various corporations and drained millions worth of cryptocurrencies.

U.S. officials disclosed that they’ve brought accusations against five people, who allegedly orchestrated a plan. This plan aimed at workers from various businesses nationwide, leveraging their identities to penetrate secure information systems and private cryptocurrency accounts.

Crypto Cartel Uses Smishing to Extort $11 Million

The strategy behind the operation utilized a deceptively straightforward yet sneaky method known as SMS phishing, or “smishing.” From September 2021 to April 2023, staff members received text messages that seemed to originate from their employers or associated tech service providers.

The warnings indicated that accounts would soon be shut down, and they led users to fake sites designed to resemble genuine business platforms. In this scenario, employees unknowingly provided their login details, which granted the hackers access not only to internal company systems but also to their cryptocurrency wallets in due course.

The court records depict a meticulously planned scheme by the group. Initially, they managed to persuade staff members into disclosing their sensitive details. Subsequently, they skillfully circumvented two-step verification, leading victims to unknowingly sanction login attempts. This deception enabled the cybercriminals to penetrate corporate networks, seize valuable company secrets, and amass vast amounts of personal data. However, this was not the end of their actions.

The stolen information became the foundation for a secondary assault — this time on individual cryptocurrency accounts. The group allegedly used their stolen data to drain $11 million in digital assets from unsuspecting crypto holders.

A crypto influencer explained that threat actors, for instance SCATTERED SPIDER, carry out vishing scams (simulated phone call phishing) to deceive victims into revealing sensitive data like login details, bank information, or security numbers. These cybercriminals frequently impersonate trusted sources, such as IT assistance, to create a feeling of urgency and trick their targets into complying with their demands.

The defendants are youthful, tech-adept individuals who maintain a variety of online personas. One of them goes by Ahmed Hossam Eldin Elbadawy, aged 23, also recognized as ‘AD.’ Another is Noah Michael Urban, a 20-year-old who often used the pseudonyms “Sosa” and “Elijah.

Besides them, there are two individuals involved: Evans Onyeaka Osiebo, aged 20, and Joel Martin Evans, nicknamed “joeleoli,” both residing in the U.S. Additionally, Tyler Robert Buchanan, at 22 years old, is based in the UK. American authorities have already made arrests, among them Urban, another defendant who is also under investigation for fraud charges in Florida.

As a researcher delving into this matter, it’s clear that the legal implications are substantial. In the event of a conviction, the defendants might be looking at a maximum of 20 years in a federal penitentiary for conspiracy to commit wire fraud. Furthermore, they could face additional prison terms for associated offenses, and there’s also mandatory jail time for identity theft charges. For Tyler Buchanan, the wire fraud allegations alone could potentially extend his sentence significantly.

As decentralized assets grow in popularity, so too does the ingenuity of those seeking to exploit them. This case warns corporations and crypto users to stay alert against phishing and strengthen security measures. In a digital world where trust holds value, complacency comes at a high and sometimes devastating cost.

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2024-11-21 19:51