GoKawiilMonsterCloud CEO Zohar Pinhasi indicted over ransomware recovery fraud scheme
Zohar Pinhasi, head of Florida-based data recovery firm MonsterCloud, was indicted on federal fraud charges last month for allegedly telling ransomware victims he could restore their files without paying hackers, while secretly paying the ransoms and billing clients far more. Prosecutors say Pinhasi collected over $19 million from clients while paying out roughly $8 million in ransoms, including one case where an $8,200 payment was billed to a client at $150,000. He faces up to 20 years in prison if convicted.
GoKawiil's interpretation of the reporting above, not reported fact.
The case follows a 2019 ProPublica investigation that first exposed Pinhasi's practices, suggesting federal prosecutors built their indictment on similar findings years later. It highlights how companies marketing themselves as ransomware-recovery specialists can exploit victims who are already under duress, potentially eroding trust in an industry with little oversight. U.S. Attorney Joseph Nocella's statement frames the prosecution as a warning to others who might profit from ransomware victims rather than genuinely helping them.
- Zohar Pinhasi, CEO of MonsterCloud, was indicted on federal fraud charges tied to ransomware recovery services.
- Prosecutors allege he charged over $19 million while secretly paying about $8 million in ransoms to hackers.
- The case echoes a 2019 ProPublica report on Pinhasi's firm and could result in up to 20 years in prison if he is convicted.
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Published there as: “Cybersecurity CEO Indicted For Allegedly Scamming Millions From Ransomware Victims”
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