MonsterCloud Owner Arraigned on Wire Fraud Over $150,000 Ransom-Recovery Scheme
Updated
Updated · Computerworld · Oct 9
MonsterCloud Owner Arraigned on Wire Fraud Over $150,000 Ransom-Recovery Scheme
3 articles · Updated · Computerworld · Oct 9
Summary
Zohar Pinhasi, also known as Zack Silver and Zack Green, was arraigned in New York on wire fraud charges tied to his ransomware-remediation company, MonsterCloud.
Prosecutors say he told clients he could restore encrypted files without paying hackers, but instead allegedly bought decryption keys from the attackers and then unlocked the data.
One 2023 example in the indictment says Pinhasi paid a cybercriminal $8,200 while charging a client $150,000, allegedly pocketing a large markup.
MonsterCloud marketed itself as an alternative to ransom payments, a sensitive pitch because U.S. authorities warn victims not to pay and some payments can violate sanctions rules.
Cybersecurity experts say the case fits a broader pattern of intermediaries exploiting ransomware victims through inflated fees and other fake recovery or compliance services.