Phishing Scheme Busted: U.S. Charges Five in Cryptocurrency Theft

The U.S. law enforcement has unsealed criminal charges against five individuals involved in a large-scale phishing scheme targeting employees at companies across the United States.  

These defendants allegedly exploited phishing text messages to steal sensitive data, which was then used to access company systems and virtual currency accounts, resulting in millions of dollars in stolen cryptocurrency. 

 The charges were made public on November 19, 2024, with the authorities describing this scheme as one of the most sophisticated cybercrime operations in recent years. 

The Running Phishing Scheme Scammers Arrested 

The defendants face multiple criminal charges including conspiracy to commit wire fraud, conspiracy, and aggravated identity theft. The individuals charged are: 

• Ahmed Hossam Eldin Elbadawy, 23, known as “AD,” from College Station, Texas. 
• Noah Michael Urban, 20, known as “Sosa” and “Elijah,” from Palm Coast, Florida. 
• Evans Onyeaka Osiebo, 20, from Dallas, Texas. 
• Joel Martin Evans, 25, known as “joeleoli,” from Jacksonville, North Carolina. 
• Tyler Robert Buchanan, 22, from the United Kingdom, who faces a criminal complaint with similar charges. 

Evans was arrested in North Carolina, while Urban is already facing additional fraud charges in a separate federal case in Florida. This case highlights the growing threat of phishing, a form of cybercrime that continues to evolve and wreak havoc on businesses and individuals alike. 

The criminal group reportedly launched their phishing attacks between September 2021 and April 2023. According to court documents, the attackers initiated mass phishing campaigns through SMS (Short Message Service) text messages, which were sent to employees of numerous companies across the United States. These messages appeared to come from legitimate sources, such as the victim companies themselves or their contracted IT service providers and warned recipients that their accounts were about to be deactivated. 

The messages included links to fraudulent websites, which were designed to mimic the legitimate websites of the companies or their service providers. Once the employees clicked on these links, they were prompted to enter their account credentials, which could include usernames, passwords, and even two-factor authentication codes sent to their mobile devices. By harvesting these credentials, the defendants gained unauthorized access to the companies’ internal systems and employees’ personal accounts. 

The Scope of the Damage 

The impact of this phishing scheme was far-reaching. Once the criminals had gained access to the stolen credentials, they used them to infiltrate the victims’ company systems. This allowed them to steal confidential and valuable information, including intellectual property, proprietary data, and personal information like account access credentials, names, email addresses, and phone numbers. 

In addition to their intrusion into company systems, the defendants used the information obtained to target individuals’ cryptocurrency accounts. By leveraging leaked data and unauthorized access, they managed to steal millions of dollars in virtual currency from unsuspecting victims. The theft of cryptocurrency adds another layer of complexity to the case, as these digital assets are notoriously difficult to trace and recover once stolen. 

Legal Consequences and Potential Penalties 

The criminal charges carry serious penalties. If convicted, each defendant faces a maximum sentence of up to 20 years in federal prison for conspiracy to commit wire fraud. Additionally, they could face five years for the conspiracy charge and a mandatory two-year consecutive prison sentence for aggravated identity theft. Buchanan, who is also charged with wire fraud, could face up to 20 years in prison if found guilty. 

“This group of cybercriminals ran a highly sophisticated scheme that targeted vulnerable individuals and companies, stealing millions of dollars and compromising the security of numerous systems,” said United States Attorney Martin Estrada. “As this case illustrates, phishing is no longer a simple nuisance but a serious crime that can result in significant financial losses and reputational damage.” 

Investigative Efforts and Law Enforcement Support 

The Federal Bureau of Investigation (FBI) has led the investigation, with assistance from the U.S. Attorney’s Office for the Eastern District of North Carolina, Police Scotland, and FBI field offices in Charlotte, Denver, Houston, and Portland. FBI Assistant Director in Charge Akil Davis emphasized the widespread nature of phishing schemes, warning that such fraudulent solicitations are common but can have devastating consequences for victims. 

“The defendants allegedly preyed on unsuspecting victims in this phishing scheme and used their personal information as a gateway to steal millions in their cryptocurrency accounts,” said Davis. “These types of fraudulent activities rob people of their hard-earned money with just a click of a button. I am proud of the work done by our cyber agents who were able to bring these alleged criminals to justice.” 

Ongoing Cybersecurity Vigilance 

Phishing remains a critical threat, and this case underscores the need for constant vigilance from individuals and businesses alike. Cybercriminals are becoming increasingly adept at using sophisticated techniques to deceive victims into revealing sensitive information. Experts continue to advise individuals to be cautious when receiving unsolicited messages or emails and to verify any communication that seems suspicious. 

The U.S. Department of Justice’s efforts to bring these defendants to justice highlight the government’s commitment to tackling cybercrime, which remains a major concern as more personal and financial activities move online. As the legal proceedings move forward, it will be important to monitor how authorities handle the challenges of prosecuting cybercrime and whether these actions can deter future attempts at phishing schemes and other forms of digital fraud. 

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