British Man Charged in Major "Hack to Trade" Scheme
Robert Westbrook is a British man who has been charged by US authorities for his role in a hacking scheme. The hacking sceheme has let him to profit illegally from stock trading. 39 year old Robert was arrested in the UK. He is now facing serious charges for securities fraud, wire fraud and computer fraud. If found guilty he could be facing decades in prison.
What Did He Do?
Between January 2019 and May 2020 Robert hacked into the email accounts of CEOs from five big US companies. He specifically targeted Tupperware, Tutor Perini, Guidewire Software, Murphy USA and Lumentum Holdings. He accessed confidential information of the companies before the companies announced their earning. And by that he made around $3.75 million in gains by trading stocks and other options. These trades were illegal because he unpublicized private details that other investors did not have access to.
How Did He Hide?
Robert has taken so many steps to hide his identity. He used anonymous email addresses, VPNs to hide his internet location. He also paid for some services with bitcoin since it is harder to trace. He also set up rules in the hacked email accounts to automatically send important messages to himself without the executives' knowledge.
What Are the Charges?
Robert is facing some serious charges. If convicted of securities and wire fraud he will be facing up to 20 years in jail on each charge. He is also facing charges of computer fraud which would add five years to his sentence. US authorities are trying to transfer him from the UK so that he can stand trial in the US.
What Happens Next?
The investigation is ongoing and Robert is likely to face both criminal charges from the US Attorney's Office and civil penalties from the Securities and Exchange Commission (SEC). The SEC is also trying to have him pay back the money he earned from the illegal trades and pay extra fines.
This case shows how serious hacking crimes may be. It also shows how US agencies such as the SEC are using new methods and technologies to track down cybercriminals. Even when they take many efforts to hide their activities.
This is a severe reminder that hacking and trading on secret data can have serious consequences.
