Robert Westbrook [1] [2] [4] [5] [6] [7] [8] [9], a 39-year-old British national based in London, has been arrested and is facing extradition to the United States for orchestrating a sophisticated hack-to-trade fraud scheme.
Description
From January 2019 to May 2020 [2], Westbrook targeted corporate executives by using genealogy websites to gather personal information, then hacking into their Microsoft Office 365 accounts to steal confidential data. By resetting passwords and gaining unauthorized access to high-ranking executives’ email accounts [7], he set up rules to forward sensitive information about impending earnings announcements to his control [7], resulting in nearly $3.75 million in illegal profits [5] [9]. Despite attempts to conceal his identity through VPN services [3], anonymous email accounts [1] [3] [6] [8], and cryptocurrency [1] [3], Westbrook was identified through advanced data analytics and crypto asset tracing [3]. The US Securities and Exchange Commission (SEC) has filed a civil complaint against Westbrook [1] [2], and the Department of Justice (DoJ) has initiated criminal proceedings [1]. He faces charges of security fraud [6] [7] [8], wire fraud [1] [2] [3] [4] [5] [6] [7] [9], and five counts of computer fraud [3], with a potential sentence of up to 65 years in prison if convicted. US authorities are pushing for his extradition from London to face trial [9]. The FBI led the investigation [3], collaborating with other regulatory authorities such as the UK Financial Conduct Authority [3]. The SEC is seeking civil penalties [3], the return of illicit gains [3], and an injunction against future violations of federal securities laws in this case [3]. Westbrook allegedly made $3.75 million in profits from insider trading by illegally obtaining information about expected earnings from five companies through computer hacking. Authorities describe his actions as sophisticated international hacking [6], involving the use of anonymous email accounts [6], VPNs [1] [3] [6] [8], and bitcoin to conceal his activities [6]. Each securities and wire fraud charge carries a maximum penalty of 20 years in prison [6], while the computer fraud charges could lead to up to five years each [6]. The companies targeted in the scheme were makers of Tupperware [8], Tutor Perini [8], Guidewire Software [8], Murphy USA [8], and Lumentum Holdings [8].
Conclusion
The arrest and impending extradition of Robert Westbrook highlight the serious consequences of cybercrime and insider trading. The collaboration between international regulatory authorities underscores the importance of global cooperation in combating financial fraud. The case serves as a warning to individuals engaging in illegal activities, demonstrating that sophisticated schemes will be uncovered and prosecuted to the fullest extent of the law.
References
[1] https://www.infosecurity-magazine.com/news/briton-charged-us-dollar375m/
[2] https://securityaffairs.com/169112/cyber-crime/british-national-charged-hack-to-trade-scheme.html
[3] https://financefeeds.com/sec-and-doj-charge-uk-citizen-in-3-75-million-hack-and-trade-scheme/
[4] https://cionews.co.in/u-k-hacker-charged-with-3-75-million/
[5] https://thehackernews.com/2024/10/uk-hacker-charged-in-375-million.html
[6] https://dig.watch/updates/man-from-london-charged-in-us-for-3-million-hack-to-trade-scheme
[7] https://www.bitdefender.com/blog/hotforsecurity/british-man-used-genealogy-websites-to-fuel-alleged-hacking-and-insider-trading-scheme/
[8] https://voi.id/en/technology/420728
[9] https://news.cloudsek.com/2024/10/uk-hacker-charged-in-3-75-million-fraud-scheme-faces-extradition-to-the-us/
