Florida Cybersecurity Firm Founder Charged with Fraudulent Ransomware Recovery Scheme
Zohar Pinhasi, the owner of MonsterCloud, was indicted for defrauding ransomware victims by paying ransoms and charging excessive fees.
The Justice Department announced an indictment against Zohar Pinhasi, the Florida-based founder of data-recovery company MonsterCloud, for a scheme that duped ransomware victims. According to prosecutors, Pinhasi assured customers that his firm could restore encrypted data without paying the attackers, yet he secretly paid the ransoms and then charged clients exorbitant fees, sometimes charging $150,000 for an $8,200 ransom.
The charges echo findings from a 2019 report that exposed how MonsterCloud re-victimized clients, including local police departments, by claiming a “trade secret” method. Federal investigators say the operation generated more than $19 million in fees while disbursing over $8 million in ransom payments. Pinhasi, who also used the alias Zack Green, pleaded not guilty and could face up to 20 years in prison. The case underscores ongoing concerns about the ransomware extortion economy and the role of intermediaries that profit from it.
Why it matters
The indictment reveals how cyber-crime intermediaries can exploit victims, highlighting risks in the growing ransomware economy.
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