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Data firm executives jailed for $1.9 million ransomware fraud
๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Crime & Justice

Data firm executives jailed for $1.9 million ransomware fraud

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Two individuals running a data recovery company were sentenced to prison for defrauding victims out of 2.6 billion won (approximately $1.9 million USD).
  • The company partnered with ransomware hackers, luring victims through online ads and sharing a portion of the recovery fees with the hackers.
  • The court cited the severity of the crime, the duration, and the number of victims in its sentencing, noting the defendants showed no remorse.

A South Korean court has handed down prison sentences to the head of a data recovery company and its advertising manager for their role in a scheme that defrauded victims of over 2.6 billion won (approximately $1.9 million USD).

We got the extension list!! Pre-register all keywords today and let the calls pour in on Monday.

โ€” B ์”จ (Advertising Manager)A text message presented as evidence during the trial, showing the advertising manager's communication with the company representative about obtaining ransomware extension information for targeted advertising.

The duo conspired with ransomware hackers, using online advertisements to attract victims seeking to recover their encrypted files. The company would then charge a fee for recovery services, a portion of which was paid to the hackers. This operation, which primarily targeted Korean-speaking users and domestic IP addresses, ran for several years.

The scheme involved hackers providing the data recovery company with information about the specific file extensions targeted by their ransomware. The company then used this intelligence to place targeted search ads, ensuring their business appeared prominently when victims searched for solutions. After victims signed recovery contracts, the company took a deposit, sent part of it to the hackers via Bitcoin, and then used the decryption keys provided by the hackers to restore the files.

The defendants shared an implicit intent to extort money from victims and performed the necessary roles for the extortion crime.

โ€” Judge Lee Chun-geunThe judge's statement explaining the court's reasoning for finding the defendants guilty of joint extortion.

Prosecutors identified 730 instances of fraud between October 2018 and July 2022, with the company collecting a total of 2.66 billion won. The court found the defendants shared an implicit intent to extort money and played distinct roles in the fraudulent operation. Evidence presented included text messages where the advertising manager excitedly confirmed obtaining the "extension list" and instructed to "pre-register all keywords."

The nature of the crime is very bad, considering the method, duration, and scale of victims and amounts.

โ€” Judge Lee Chun-geunThe judge's statement explaining the severity of the crime during sentencing.

In its ruling, the court emphasized the severe nature of the crime, considering the methods, duration, and scale of the victim pool. It noted that the defendants had not reached any agreement with the victims or made efforts toward restitution, and displayed no remorse. While acknowledging that the hackers likely received the majority of the illicit funds and the defendants' direct profit was smaller, the court still deemed a strict punishment necessary due to the overall gravity of their actions.

A strict punishment corresponding to the guilt is necessary.

โ€” Judge Lee Chun-geunThe judge's concluding remarks on the need for severe punishment for the defendants.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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