Cybersecurity Expert Charged with Fraud in Ransomware Cases

Cybersecurity expert Zohar Pinhasi, also known as "Zack Silver" and "Zack Green," has been indicted on wire fraud charges in the Eastern District of New York. Prosecutors claim Pinhasi told clients his company, MonsterCloud, could decrypt ransomware without paying cybercriminals. Instead, Pinhasi allegedly paid hackers millions of dollars.

According to the U.S. Attorney's Office, Pinhasi possessed no special technology for data decryption, despite presenting himself as having access to "proprietary tools" and "advanced decryption techniques." Instead, Pinhasi allegedly contacted and paid the cybercriminals who victimized clients in exchange for decryption keys.

Prosecutors assert that in one instance, an $8,200 ransom demand resulted in a bill of approximately $150,000 for the victim. "By falsely claiming to be able to decrypt ransomware without paying the ransomers, the defendant re-victimized his clients while extracting a hefty profit for himself," stated U.S. Attorney Joseph Nocella Jr.

Pinhasi founded MonsterCloud, a Florida-based cybersecurity and IT management company, in 2003. The company advised clients not to pay ransoms, claiming its team specialized in helping businesses recover data without succumbing to cybercriminal demands.