A former Army soldier responsible for a series of attacks and extortion attempts on telecom companies, including AT&T, was sentenced to 70 months in prison, the Justice Department said Friday.

Cameron John Wagenius engaged in a cybercrime spree for years, including while he was on active duty on a base in Texas. Prior to his arrest in December 2024, Wagenius attempted to sell stolen sensitive data to a foreign intelligence service and sought information online about defecting to Russia.

“Cameron Wagenius spent more than a year and a half betraying the trust placed in him as an active duty soldier by carrying out a sweeping cybercrime campaign,” said A. Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division, said in a statement.

Wagenius, who pleaded guilty in July 2025, leaked stolen call records of President Donald Trump as part of multiple failed attempts to extort $500,000 from AT&T, Allison Nixon, chief research officer at Unit 221B, previously told CyberScoop. 

Authorities did not name Wagenius’ alleged victims in court filings, but said he disclosed non-content call detail records belonging to a government official and family members of another former official. AT&T in July confirmed cybercriminals accessed the company’s Snowflake environment in April and stole six months of phone and text records of “nearly all” of its customers. 

Wagenius’ and one of his co-conspirators, Connor Moucka, attempted to extort more than 10 organizations after stealing credentials and breaking into cloud platforms used by AT&T and other major companies based in the United States and abroad. 

Moucka, a Canadian extradited to the United States in March 2025, pleaded guilty in August to playing a central role in one of the most far-reaching cyberattacks of 2024 — the widespread compromise of more than 165 Snowflake customer environments, resulting in massive data theft for extortion.

Wagenius, Moucka and their alleged co-conspirator John Erin Binns, who is not presently in U.S. custody, stole billions of sensitive records and received more than $2.5 million in extortion payments combined, according to prosecutors. Victims of the attack spree included AT&T, Ticketmaster, Advance Auto Parts and Santander.

Some of the records in Wagenius’ possession at the time of his arrest were stolen in the attack spree on Snowflake customer databases, according to cybercrime researchers. Officials said Wagenius was directly involved in attempted extortion attempts targeting multiple organizations for a combined total of more than $1 million. 

The 22-year-old was ordered to pay almost $295,000 in restitution for his crimes.

“His hacking schemes were not only aimed at getting rich, he was also motivated by a desire to achieve status within criminal hacking communities,” Charles Neil Floyd, first assistant attorney for the U.S. District Court for the Western District of Washington, said in a statement. “This sentence must impose real consequences to deter him, and hopefully other would-be hackers.”

Wagenius, who identified himself as “kiberphant0m” and “cyb3rph4nt0m” on online criminal forums, used a hacking tool he helped develop called SSH Brute to steal credentials while on active duty, officials said. Wagenius and his co-conspirators threatened the victim organizations privately and in public forms, officials added.

“It is especially shocking that a member of our armed forces, sworn to defend Americans and their constitutional rights, would engage in such a violation of privacy,” W. Mike Herrington, special agent in charge of the FBI Seattle field office, said in a statement.

When federal law enforcement seized Wagenius’ devices in December 2024, they found evidence indicating he had access to thousands of stolen identification documents and large amounts of cryptocurrency. Days later, Wagenius purchased a new laptop against his commanding officer’s order, according to officials, and used it every day over a five-day period in the barracks at Fort Cavazos in Texas with VPN software to hide his identity and location.

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Another core member of the hacker subset of The Com involved in a spree of extortion attacks from at least 2021 to 2023 pleaded guilty to federal charges, according to court records released Tuesday.

Ahmed Hossam Eldin Elbadawy, a 24-year-old from Texas, pleaded guilty exactly one year ago to wire fraud conspiracy and aggravated identity theft. His guilty plea wasn’t shared publicly until prosecutors filed an order of forfeiture this week seeking proceeds from Elbadawy’s criminal activities. 

Elbadawy and his co-conspirators — Noah Michael Urban, a Florida man sentenced to 10 years in prison last year, and Tyler Robert Buchanan, a Scottish man who pleaded guilty to multiple cybercrimes in April and awaits sentencing — were part of an aggressive subset of The Com coined Scattered Spider. 

The financially-motivated crew obtained credentials via social engineering and stole sensitive company data to identify high net worth employees with virtual currency accounts containing millions of dollars, according to an indictment filed against Elbadawy and his co-conspirators in late 2024. 

Federal authorities filed charges against five individuals with links to the Scattered Spider cybercrime outfit, including Elbadawy, Urban, Buchanan, Evans Onyeaka Osiebo and Joel Martin Evans in 2024.

Elbadawy’s victims included large businesses in the entertainment, telecom, technology, business process outsourcing, IT, cloud and virtual currency sectors, officials said. Prosecutors linked Elbadawy and his co-conspirators to at least 12 victim companies in the indictment, including three businesses located in Southern California where he awaits sentencing. 

Authorities detailed 29 victims who were compromised by Elbadawy and his co-conspirators. The crew stole virtual currency from wallets controlled by many of those victims. The most high-value thefts included virtual currency worth nearly $6.35 million in September 2021, $571,000 in June 2022 and nearly $1.7 million in December 2022. 

Prosecutors are seeking significant property and asset forfeiture from Elbadawy, including Bitcoin valued at more than $14.19 million, Ethereum valued at more than $3.4 million and nearly $63,000 in cash. Officials also requested the forfeiture of a lifted golf cart, three luxury vehicles, a painting of Muhammad Ali, luxury watches, gold jewelry, a vast collection of designer bags and 150 pairs of shoes.

The terms of Elbadawy’s plea agreement haven’t been released. 

While early leaders of Scattered Spider have been arrested or sentenced for their crimes, others have filled those roles with even more exceptional impact.

The Com has grown to thousands of members, typically between 11 and 25 years old, splintered into three primary subsets the FBI describes as Hacker Com, In Real Life Com and Extortion Com.

Criminal acts committed by these multiple, interconnected networks include swatting, extortion and sextortion of minors, production and distribution of child sexual abuse material, violent crime and various other cybercrimes.

You can read the indictment against Elbadawy and some of his co-conspirators below.

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McKesson said its business and distribution centers remain operational in the wake of a cyberattack it disclosed Friday that resulted in data theft and temporary service interruptions.

Attackers gained access to some of the health care vendor’s third-party applications and stole data associated with a subset of customers in the company’s oncology, multispecialty and medical-surgical business units, Francisco Fraga, chief information and technology officer at McKesson, said in a statement Saturday. 

McKesson is a major player in the healthcare sector, claiming it distributes about one-third of all pharmaceuticals used throughout North America. It reported $403.4 billion in revenue for the one-year period ending in March. 

The company’s size and critical role it serves also makes it a high-profile target for cybercriminals. McKesson did not identify the group behind the attack, but ShinyHunters, a cybercrime group known for targeting large organizations with extortion demands after stealing massive amounts of sensitive data, claimed responsibility.

The company declined to answer questions about ShinyHunter’s claims. Yet, on Friday, McKesson disclosed the attack in a regulatory filing while ShinyHunters added the company to its data-leak site. 

McKesson said it discovered the attack Aug. 25. A period of widespread data theft was over by then, following a four-day intrusion beginning Aug. 21, according to researchers.

“Upon discovery, we immediately activated our incident response protocols, launched an investigation, and engaged leading cybersecurity industry experts to support our response,” Fraga said in a statement. 

“We have reasonable assurance of no ongoing unauthorized activity in our systems. Customers can continue to connect to and use our systems and services as intended,” he added. 

While McKesson’s investigation continues, it faces a more urgent deadline of Sept. 1 from ShinyHunters, which is reportedly seeking a ransom demand in excess of $55 million. 

The company did not answer questions about any ransom demand or whether it responded to the alleged attackers. 

The circumstances of the attack against McKesson are similar to other recent victims of ShinyHunters. The threat group typically uses social engineering or abuses weaknesses in identity to gain access to cloud-hosted environments containing troves of sensitive or proprietary data, which it threatens to leak if the victim doesn’t pay a ransom. 

“Opportunistic data extortionists have been able to identify weaknesses within identity and access management, making these campaigns both cheap and scalable,” said Ian Gray, vice president of cyber threat intelligence at Flashpoint. 

“These attacks are particularly difficult to detect early because they often occur entirely within vendor-hosted environments using valid, socially-engineered credentials,” he added. “Since this activity mimics normal support or data-warehouse tasks, it typically doesn’t trip traditional malware alerts or show anomalies, meaning organizations often remain unaware of the breach until the extortionists make contact.”

Researchers have linked ShinyHunters to multiple attack sprees targeting major cloud platforms, including Oracle, Salesforce and Snowflake. The decentralized crew of cybercriminals was also linked to an expansive compromise last summer impacting hundreds of Salesloft Drift customers that put any platform integrated with the AI chat agent at risk as well. 

In April, ShinyHunters broke into the systems of Canvas — a central hub for K-12 and university coursework, exams, grades and communication — causing widespread outages and data theft. When an early deadline passed without payment, ShinyHunters escalated its pressure on Instructure, the company behind Canvas, by defacing the platform’s login pages with an extortion message that was visible to hundreds of schools.

Instructure ultimately relented and said it reached an agreement with the cybercriminals, insisting the stolen data was returned with assurances that other copies were destroyed.

The FBI issued a public service announcement about ShinyHunters days later, warning potential downstream victims of the threat group’s pressure tactics and claims.

In late July, less than a month before McKesson was hit, Health-ISAC warned organizations in the sector of an increase in successful attacks by ShinyHunters.

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The Bureau of Alcohol, Tobacco, Firearms and Explosives insists the cyberattack that it publicly disclosed Wednesday was limited to investigation targets, and has not impacted other agency systems.

ATF said it is responding to the breach, which first became public after a prolific ransomware group claimed it accessed the federal agency’s network “The incident involved a standalone computer system containing information about targets of ATF investigations,” Tanya Roman, ATF’s public affairs chief, told CyberScoop in an email.

“The standalone system was not connected to any other ATF systems, including any case management systems, laboratory systems, or eForms systems, and it was quickly shut down when the breach was discovered,” Roman added. 

Qilin, a financially-motivated threat group composed of Russian-speaking operators, claimed responsibility for the attack, but its involvement hasn’t been independently confirmed. The group has claimed hundreds of victims from more than 60 countries since 2022 and became one of the most active ransomware threats globally by mid-2025, according to Halcyon. 

ATF declined to comment on Qilin’s alleged involvement, the root cause of the attack or when it occurred. Yet, the agency disclosed the attack hours after Qilin claimed it breached ATF’s systems.

“This is an ongoing investigation, and no further details can be shared at this time,” Roman said. 

The federal law enforcement agency, which is under the Justice Department, said senior officials designated the event a “major incident” and completed notifications. “The incident has not impacted ATF’s ability to perform its missions,” ATF said in a statement.

Qilin operates an affiliate-based ransomware model and remains highly active, claiming dozens of new victims monthly across manufacturing, health care, financial services, education and government sectors.

The FBI said Qilin was among the five-most reported ransomware variants reported to Internet Crime Complaint Center last year. Google also said the group was one of the most active ransomware brands in 2025.

The majority of Qilin’s victims are based in the United States and nearly 1 in 4 alleged targets are in the manufacturing industry, according to Halcyon. The extortion group has formed strategic partnerships with Scattered Spider and Moonstone Sleet, and uses infrastructure overlapping with BianLian. 

While Qilin has targeted organizations in the government sector before, its claimed attack against a federal law enforcement agency could mark an escalation in targeting. Yet, its objectives in this case are unclear as any ransom payment is very unlikely.

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Grand Theft Auto VI, widely heralded as the game event of the decade, took a significant hit last week after a cybercriminal sent much of the internet into pandemonium after publishing gameplay footage a week before the game’s publisher planned to reveal core portions of the game to the public.  

The files posted by the online persona “CyberLeek” indicate either a hacker had direct access to Rockstar Games’ most sensitive systems or was given proprietary data by an insider, eventually becoming one of the highest-profile data extortion attacks of the year — a vexing, almost-daily occurrence hitting industries of all types.

While most data extortion attacks rattle companies due to regulatory or privacy concerns, this particular incident has caused an outsized response from Rockstar’s parent company, Take-Two Interactive Software, because it has an audience. While no lives are at risk, as they would be in an attack on critical infrastructure, the financial and reputational stakes are magnified precisely because people are watching every drip of stolen footage become a news story or a trending topic. 

“IP theft — whether it’s conducted by a cybercriminal, an insider, or even potentially [an artificial intelligence] model — rips away the hard work, passion, and livelihood among employees and companies that created the product in the first place,” Cynthia Kaiser, senior vice president of Halycon’s ransomware research center, told CyberScoop.

The game’s prior release, GTA V, along with its online component, has sold over 230 million copies and earned Take-Two over $11 billion since its release in 2013. Industry analysts say GTA VI is on pace to make between $3.3 billion to $5.2 billion in cumulative global sales by the end of its launch week in November. 

“The crown jewels of a company are whatever makes it differentiated and special,” said Kaiser, the former deputy assistant director of the FBI’s cyber division. “For some, that means customer data or source. For a studio in the final stretch before launch, the crown jewel is the surprise.”

While Take-Two hasn’t said anything publicly about the leaks, it has responded feverishly via its legal team. The company petitioned a federal court for subpoenas under the Digital Millennium Copyright Act against Discord, Google, Microsoft and X, seeking the identity of CyberLeeks and other user accounts it accuses of copyright infringement.

Federal judges granted the subpoenas against Discord, Microsoft and X, but the petition against Google remained unapproved as of Monday. Take-Two’s legal representatives also sent copyright notices to the four companies, informing them of the copyrighted material published on their platforms, but it’s unclear if any of the tech companies have been formally served with the signed subpoenas. 

Take-Two and Rockstar did not respond to a request for comment.

The subpoenas may have been enough to spook those responsible for the leaked footage. As of Monday, the websites where those behind CyberLeek were posting leaked information and links to a memecoin were offline.

Zach Edwards, staff threat researcher at Infoblox and a self-proclaimed fan of the series, initially thought the leaks were part of a Rockstar guerrilla marketing campaign. But the company’s response “confirms that this is a real investigation, and the content being shared is likely real to some degree,” he said. 

Take-Two’s actions thus far indicate the company is approaching the breach and leaks like an insider threat investigation, Edwards said. Whoever leaked the footage may have had access to an actual build of the game, he added. That could point to an insider, someone who could have saved a copy to a cloud service, uploaded it to a file-hosting site, or walked out with it on an external drive.

CyberLeek’s conflicting motivations

The hacker or group behind CyberLeek claim they are releasing the gameplay videos to protest Rockstar’s decision to not release physical copies of the game. Yet, watermarks on the leaked videos include addresses to crypto wallets, which indicate CyberLeek is also, and perhaps primarily, seeking a payout. 

“The persona behind the leaks, CyberLeek, published an anti-corporate manifesto targeting digital pre-orders and disc-less releases to frame the breach as hacktivism,” Ben Bernstein, manager of Huntress’ cybersecurity advisors team, told CyberScoop. “Yet behind the political posturing, there’s clear financial monetization and clout-chasing.”

Kaiser draws the same conclusion. “Let’s separate stated motive from observed behavior,” she said. “Threat actors who talk about principle while running a monetization channel are usually only telling you what they think will land with an audience, not actually what is driving them.”

Katie Moussouris said “this is what the alternative vulnerability economy looks like.” The founder and CEO at Luta Security has spent decades building legitimate channels for people who find security problems to get paid without turning to crime.

“The leaker launched a cryptocurrency token, watermarked stolen footage with a buy link, and offered to sell ad space on future leaks. Each of those pays out in proportion to how many people are watching. The manifesto is what keeps them watching,” Moussouris said. 

“That is a genuinely new monetization model for stolen pre-release content, and it means the usual playbook of negotiating a ransom payment quietly or paying to make it stop won’t work,” she added.

Different flavor, same crime

Despite its unique characteristics, the rhythm of the attack and its fallout is familiar territory for cybersecurity experts. 

“Steal, publish a sample, promise more, deliver, repeat. Just like ransomware attacks, in cases like these criminals use every lever of pressure they can against a company — including the fear of what is coming next — to profit from their actions,” Kaiser said. 

“The attackers are crowdsourcing their pressure tactics. A meaningful share of the player base is treating the leaks as free content and amplifying them,” she added.

Kaiser also sees some clear parallels with previous attacks targeting major entertainment companies, including the 2014 attack on Sony Pictures and the HBO hack in 2017. 

“The Sony comparison is useful for how these things escalate, but this incident reminds me more of the Iranian hackers’ leak of ‘Game of Thrones’ episodes a few years back,” she said. “North Korea attacked Sony for political purposes, destroying its data along the way; Iranian threat actors compromised HBO, along with hundreds of universities and over forty other companies, in a hacking-for-hire scheme stealing American intellectual property.”

Federal authorities earlier this month unsealed a second wave of indictments against 17 Iranians affiliated with the tech firm Mabna Institute who allegedly stole troves of data from government agencies and dozens of companies, including HBO.

This isn’t the first time Rockstar has been hit with a security incident. In 2022, an 18-year old British man who was a member of the Lapsus$ cybercriminal gang was sentenced to an indefinite hospital order after leaking gameplay footage. According to the BBC, the incident cost Rockstar, along with ridehauling company Uber and chipmaker Nvidia, over $10 million. 

The subpoena that worries security experts

Security professionals expect the situation to escalate on all sides. Leaks have hit the internet daily for the past eight days, including a series of leaks Tuesday morning. Meanwhile, Take-Two has not relented on its subpoenas. Its broadest move was a subpoena against Discord, seeking identifying data on CyberLeek, two other users and every member of three Discord servers where the copyrighted material was posted.  

Moussouris said the scope of that inquiry should worry people well beyond this case. 

“Take-Two asked for Windows device identifiers, login records, and cloud storage contents for every person who spoke in three Discord servers going back to June,” she said. “The people with the best chance of uncovering the culprits are those doing the unglamorous investigation forensics work of figuring out how the build may have leaked.”

Discord would not say whether it had been formally served or what it has done in response. A company spokesperson said it reviews and complies with valid subpoenas when they are received. 

While the breach and leak of ‘GTA VI’ material is a serious matter, Edwards noted that Take-Two is also benefiting from greater interest in the unreleased game on a daily basis. 

“The threat actor leaking these videos has failed by essentially creating a successful underground marketing campaign for the game while also putting themselves at serious risk of being eventually caught,” he said. 

“This incident is playing out like a classic insider threat exploitation scheme. Someone got access to sensitive data, they had a political agenda which clashed with the owner of the sensitive data, and they decided to do something stupid to try and force a change,” Edwards added. “This attack has done nothing but spread ‘GTA VI’ content further than it would have otherwise, and it’s creating ripples across other industries like cybersecurity who would have never covered ‘GTA 6’ issues previously.”

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A notorious cybercrime group has once again exploited a critical zero-day vulnerability on a large scale, claiming it stole data from dozens of organizations, including some of the world’s largest publicly traded companies.

Clop, a prolific but calculated data theft extortion group that’s been active since 2020, began sending threatening emails to its alleged victims in mid-July, according to researchers. 

The fallout from the attack spree, which followed a familiar pattern for Clop and its targeted pool of victims, is still evolving as companies hunt for potential signs of compromise.

The vulnerability at the center of Clop’s latest campaign affects a pair of software products from PTC — Windchill and FlexPLM — which manufacturers and retailers, particularly in the manufacturing, aerospace, and automotive industries, use to automate supply chain systems and manage product lifecycles.

“This continues Clop’s trend of targeting SaaS logistics companies’ platforms with zero-days and carrying out mass-exploitation campaigns,” Allan Liska, field chief information security officer at Recorded Future, told CyberScoop.

PTC disclosed the vulnerability — CVE-2026-12569 — on June 17 and issued a patch and initial indicators of compromise the following day. 

Yet, that was too late for some of Clop’s known victims who were likely compromised by exploitation of the zero-day in early June, according to Ransom-ISAC.

The Cybersecurity and Infrastructure Security Agency added the defect, which allows unauthenticated attackers to execute code remotely, to its known exploited vulnerabilities catalog June 25.

PTC consistently added new indicators of compromise as they were discovered by researchers. But the company hasn’t said how it first became aware of the vulnerability and ensuing attacks, when the earliest known instance of exploitation occurred or how many customers are known to be compromised. 

PTC did not respond to a request for comment. 

Clop’s claimed victim set is diverse. The point-of-sale restaurant management platform Toast and software vendor Zebra both told CyberScoop they detected and contained system intrusions, but claimed limited impacts. Other alleged victims, including GE, Philips and Shell, did not respond to requests for comment. 

Researchers continue to uncover new details about the tools Clop used once it exploited and gained access to PTC customer systems. ReliaQuest said the group used a custom web shell that gave attackers a direct path to credential theft and large-scale data theft.

The fully equipped extortion platform, which was purpose-built for Windchill, decrypts credentials, delivers malware, and includes tools for sustained access, network traversal and data encryption, ReliaQuest researchers wrote in a report Tuesday.

The toolkit allows attackers to move quickly from initial access to data theft and additional post-exploitation activity without executing manual commands — a framework that mimics Windchill’s standard functions and limits defenders’ ability to detect any malicious activity.

“This campaign is another reminder that Clop remains a sleeping dragon, always looking and preparing to mass exploit vulnerabilities in software that holds sensitive data,” ReliaQuest researchers wrote in the report. “The group commonly goes inactive between campaigns but springs to life with custom-built web shells whenever there is another opportunity for mass extortion.” 

The drawn-out impact of Clop’s latest attack spree also mirrors some of its previous campaigns. The threat group has successfully exploited zero-days across multiple technology vendors’ systems, allowing it to steal sensitive data for weeks — sometimes months — from many downstream customers.

Clop targeted dozens of Oracle E-Business Suite customers for more than three months, beginning in the summer of 2025, before it started bombarding victims with extortion emails. The group also achieved mass exploitation as it infiltrated MOVEit environments in 2023, ultimately exposing data from more than 2,300 organizations, making it the largest and most significant cyberattack that year.

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A cybercrime group responsible for a string of recent attacks against private equity firms, law firms and financial rating agencies remains active and continued to target new victims as of late last week, according to researchers.

BlackFile, which Google Threat Intelligence Group tracks as UNC6671 and associates more broadly with The Com, has been active since the start of the year, shifting its focus from one sector to the next. 

“We have seen continued targeting against the financial sector with additional targeting of other organizations including in the med tech space,” Austin Larsen, principal threat analyst at GTIG, told CyberScoop.

The extortion group impersonates IT support in voice-phishing and social engineering attacks, and recently split its extortion operations across four brands with shared infrastructure: Redact, Pink, Helix and Falcon.

Several organizations received new extortion demands from Redact in the last week, according to Google. 

BlackFile and its various affiliates have impacted organizations in multiple industries, including healthcare, technology, transportation, logistics, wholesale, retail and hospitality.

“BlackFile does go after some of the largest organizations in the sectors that they go for. They’re not going after small companies,” Larsen said. “This is big-game hunting.”

The group’s extortion demands often start around $3 million and payments, including several in the past few weeks, have typically been negotiated down to less than $1 million, according to Google.

Flashpoint researchers told CyberScoop they have observed malicious infrastructure targeting Blackstone, Bain Capital, Moody’s, CME and Apollo, but it’s unclear if any of those firms were compromised. 

BlackFile’s steady pace of activity underscores the persistent threat it poses, as it targets an average of 1.5 new victims daily, researchers said.

Some of the group’s recent victims have been subject to threatening messages and other forms of escalation, including swatting incidents, a tactic adopted by several subsets of The Com, according to Google. 

The attackers use hundreds of callers, often lower-level people that are recruited for a small fee or an opportunity to earn goodwill with the group, who make the voice phishing calls to obtain initial access. Larsen estimates less than a dozen core operators run the different brands under the BlackFile umbrella.

“From the intrusion data that we’re seeing, this does appear to be essentially the same group,” he said, adding that different people may be operating the various brands, but they’re all linked back to the same threat cluster using shared infrastructure.

Mandiant incident responders encounter BlackFile often, having been engaged by more than two dozen organizations successfully compromised by the threat group since January. New victims in the financial sector were calling Mandiant in for help earlier this month.

Voice-based phishing attacks for data theft extortion aren’t sophisticated or novel, but BlackFile and other cybercrime groups consistently prove their continued effectiveness across virtually any sector or organization. “They’re really hitting on the human weakness element here,” Larsen said.

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The State Department will restrict visas for cybercriminals like scammers to sextortionists, and in some cases even their family members, Secretary of State Marco Rubio said Thursday.

The Trump administration has sought to make a crackdown on foreign-based scams one of the signature issues of his second term. An executive order that the president signed in March indicated that visa restrictions would be on the table as one response.

“By restricting visa issuance to those who are responsible for or complicit in these criminal enterprises, we are sending a clear message: The United States will go after those who prey on our citizens,” Rubio said.

Other departments have also made efforts to reduce foreign-run scams. In June, the Department of Justice seized infrastructure used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate tied to one of the world’s most prolific criminal marketplaces used to commit cyber scams and other crimes.

Rubio authorized the visa restrictions under a 1952 law that gives the State Department the ability to deport or rule as inadmissible someone who poses “potentially serious adverse foreign policy consequences.”

Critics have accused the Trump administration of abusing that provision of the law for political purposes.

Rubio’s statement on the visa restrictions mentions “individuals responsible for, or complicit in, cybercrime and cyber-enabled crime, such as those involved in cyberscams, and sextortion.”  Furthermore, he said, “Immediate family members of individuals engaged in such illicit activities may also be subjected to visa restrictions.”

Betsy Cooper, Founding Director of the Aspen Policy Academy, said the visa restrictions on cybercriminals could be valuable, but offered a caveat.

“Scamming people is a growing global enterprise, and it is a laudable goal to penalize those who scam and defraud people since they so rarely suffer consequences for their actions,” she said in a statement to CyberScoop. “So long as the new visa controls are used narrowly and deployed only against verified scammers and fraudsters, this is a positive step toward combatting cyber-enabled crime.”

While some cyber experts have questioned how much visa restrictions, prosecutions and other punishments of cyber miscreants who are based overseas will affect them, others maintain that it can serve as a deterrent to those who would consider getting into the line of work but want freedom to travel the globe.

FightCyberCrime.org, a nonprofit that seeks to help cybercrime victims, applauded the restrictions on the cybercriminals.

“We welcome efforts to hold cybercriminals accountable across borders. Cryptocurrency investment scams, romance scams, and sextortion cause devastating financial and emotional harm to victims,” it said in a statement to CyberScoop. “Meaningful disruption of these transnational criminal networks is an essential part of the response.”

But there’s still a long way to go in the fight, the statement continued.

“At the same time, we must invest more in victim support, prevention, and recovery resources,” the organization said. “Accountability is critical, but ensuring victims have access to trauma-informed support and resources is equally important.”

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A pair of young men were sentenced to 66 months in jail for committing a cyberattack on the Transport for London that brought the network’s operations to a standstill in 2024, the United Kingdom’s National Crime Agency said Thursday.

Thalha Jubair and Owen Flowers were arrested at their homes in September 2025, barely a year after the attack, and pleaded guilty last month just as their trials were set to begin. Flowers was previously arrested in connection with the attack in September, but was released after questioning by officers.

Jubair and Flowers were leading members and highly involved in Scattered Spider, a nebulous hacker subset of The Com, according to researchers. The 20-year-old Jubair was a prolific cybercriminal and core member of the unbound collective. 

U.S. authorities last year accused Jubair of direct, prominent involvement in at least 120 cyberattacks, including extortion of 47 U.S.-based organizations and the January 2025 attack on the federal court system. 

Officials said they traced a combined total of at least $89.5 million in cryptocurrency, at the time of payments, to Bitcoin addresses and servers controlled by Jubair. Two financial services firms paid Jubair $25 million and $36.2 million, respectively, in Bitcoin between June and November 2023, according to an unsealed criminal complaint against Jubair. 

At the time of Jubair’s arrest, “he was one of the four principal people that we associated with Scattered Spider,” and one of the two most core players, Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, told CyberScoop. 

Jubair and Owens had significant resources and support, and “victim payments were reinvested back into the enterprise,” said Allison Nixon, chief research officer at Unit 221B. 

The lasting impact of Jubair and Owens’ capture and imprisonment remains hazy.

U.K. authorities insist Jubair and Owens’ arrests and punishment “effectively halted the group’s criminal activity,” yet they added that other cybercriminals continue to use the Scattered Spider brand in more recent attacks. 

Thursday’s announcement “represents a significant step in holding accountable two members of Scattered Spider, a group that has repeatedly relied on data extortion, SIM-swap attacks, and other social engineering techniques to infiltrate networks and undermine critical services,” Brett Leatherman, assistant director of the FBI Cyber Division, said in a statement. 

The FBI also noted, in a LinkedIn post, that members of Scattered Spider “continue to victimize organizations around the world and cause significant financial and operational harm.”

When Owens, now 18, was first arrested for the Transport for London attack in 2024, investigators said he was “in the process of hacking the systems of U.S. health care companies SSM Health Care Corporation and Sutter Health, which had been infiltrated and damaged.”

Officials also said Jubair and Owens failed to cooperate after their arrests. 

“This is the largest cybercrime prosecution ever brought before the U.K. courts and the culmination of nearly two years of painstaking work,” Paul Foster, head of the National Crime Center’s National Cybercrime Unit, said in a statement. 

“Scattered Spider has been the most significant cybercrime threat to the U.K. in recent years. Through this investigation, we have severely disrupted that threat and brought key offenders to justice,” Foster added.

Despite the upbeat reaction from U.K. officials, Nixon said the punishment for Jubair and Owens is “remarkably lenient considering the period of continuous reoffending lasted longer than the sentence.”

Nixon hopes the United States will eventually extradite the pair to face additional charges. “If that happens, they won’t be able to use mental illness as a loophole to get back to harming society as soon as possible,” she added.

“No one who worked on their case was surprised they would reoffend, and there seems to be no allowance in the law to protect the public from what everyone knew was going to happen,” Nixon said. “I know the narrative in the cybercriminal culture will glorify them, but they wouldn’t if they knew the full story.”

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A former ransomware negotiator for DigitalMint was sentenced to 70 months in jail for deceiving his employer’s clients and conspiring with ransomware affiliates to extort a combined $75.3 million from five U.S. companies he was entrusted to aid during their moments of extreme crisis, the Justice Department said Thursday. 

Angelo John Martino III shared confidential information he gained from his work as a ransomware negotiator, including victim organizations’ negotiating positions and insurance policy limits, to extract the maximum payment for himself and other BlackCat affiliates he colluded with in backchannels.

Five of Martino’s victims hired DigitalMint, which assigned the 41-year-old to conduct ransomware negotiations on their clients’ behalf — a rare position he exploited to play both sides, effectively conducting ransomware negotiations with himself and his co-conspirators.

The five victims, all of which paid a ransom between April 2023 and September 2023, include a nonprofit that paid a nearly $26.8 million ransom, a financial services company that paid nearly $25.7 million, and a hospitality company that paid almost $16.5 million. 

DigitalMint hired the South Florida-based man in 2022 after he was already engaging in criminal activity, according to court records. The husband and father of two young children had a long history as a cybersecurity professional, dating back to at least 2015, with previous stints at Booz Allen Hamilton, Tracepoint and TRM Labs.

Martino surrendered to U.S. Marshals in March, was released on a $500,000 bond, and pleaded guilty in April to conspiracy to obstruct, delay or affect commerce or the movement of any article or commodity in commerce by extortion. He faced up to 20 years in prison.

Martino also admitted to conspiring with Kevin Tyler Martin, another former ransomware negotiator at DigitalMint, and Ryan Clifford Goldberg, a former manager of incident response at Sygnia, to deploy BlackCat ransomware, also known as ALPHV, against five additional U.S. companies between April and November 2023. 

Goldberg, Martin and Martino split proceeds from a nearly $1.3 million ransom payment they received from a medical company in May 2023, but did not successfully extort a financial payment from the other four victims.

Goldberg and Martin pleaded guilty in December to participating in a series of ransomware attacks and were each sentenced in April to four years in prison. 

DigitalMint insists it had no knowledge of Martino’s criminal acts. “The actions of Martino and his co-conspirators were deliberately concealed from DigitalMint and were in clear violation of the company’s values, ethical standards and the law,” a company spokesperson told CyberScoop in a statement.

The company also reiterated that it immediately terminated Martino and suspended his access to systems when the Justice Department notified the company it was investigating him in April 2025.

“DigitalMint maintained controls consistent with industry standards, including background checks and compliance procedures, but Martino intentionally hid his conduct from the company, including through separate, unauthorized communication channels that the government’s filings describe as accessible only to Martino and the BlackCat negotiators and affiliates,” the spokesperson added.

DigitalMint has yet to directly answer questions about whether it refunded its clients who were victimized by Martino. 

“We are not able to discuss specific client relationships or fee arrangements due to confidentiality obligations,” the spokesperson said. “We remain committed to our clients and will continue to maintain strict confidentiality on all commercial matters.”

The case against Martino showcases an extreme, albeit rare, example of the dark underbelly of ransomware negotiation as a practice. The pitfalls of ransomware negotiation are excessive and these backchannel negotiations, which remain largely unscrutinized, can go awry for various reasons.

Officials describe Martino as a ‘double agent’ driven by greed

Prosecutors said Martino obtained an ALPHV affiliate account that he shared with his co-conspirators and received a portion of the ransomware payments for his involvement in the conspiracy.

Authorities have seized $10 million in assets, including a bayfront home with an estimated value of $1.68 million, a second single-family home with an estimated value of $396,000, and cryptocurrency wallets controlled by Martino. Law enforcement also seized multiple vehicles, a food truck and a 29-foot luxury fishing boat that Martino obtained using proceeds from his crimes.

“Angelo Martino’s victims shared heartbreaking accounts of how their businesses were nearly destroyed, while the people they hired to help them instead betrayed them to ransomware gangs,” A. Tysen Duva, assistant attorney general at the Justice Department’s Criminal Division, said in a statement. “Today’s sentence accounts for the harm Martino caused and demonstrates that the Department of Justice can and will identify and prosecute cybercriminals to the fullest extent of the law.”

Court records include a series of chats Martino held with co-conspirators and victims that exemplify the lengths he went to betray DigitalMint’s clients and empower his accomplices with crucial tips for a successful negotiation strategy.

During an incident response with one of his victims, Martino told a BlackCat affiliate the company’s insurance carrier “was only approving small accounts,” according to his plea agreement. “Keep denying our offers and I will let you know once I find out the max the[y] want to pay,” he added.

“We don’t know how you came up with your demand but we are losing money operationally and all of our loans are going to turnover on us this year at double the interest rates,” Martino said in a negotiation chat visible to DigitalMint and the victim organization in the hospitality industry. “We are able to give you $1 million now, which is a very serious offer.”

Following Martino’s instructions, the BlackCat accomplice responded: “Well, you can keep that for the penalties and lawsuits which are coming your way in case we expose you. Time is ticking — we know how much you can pay. Contact your insurance. We know about them also. Stop wasting time.”

That victim company ultimately paid a ransom worth nearly $16.5 million at the time to receive a decryptor and the BlackCat affiliate’s commitment to not publish stolen data. Two other victims Martino represented via DigitalMint at the time paid $6.1 million and $213,000 ransoms for similar commitments.

“Angelo Martino sold out the very victims he was hired to represent, handing their confidential negotiating positions to BlackCat actors to drive up ransoms and enrich himself,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement.

In a sentencing memo, federal prosecutors described Martino as a “double agent working to maximize the harm to his clients and the financial gain to cybercriminals who paid him a part of the ransom.”

Prosecutors added: “This was not a crime of opportunity or momentary weakness; it was a sustained abuse of a fiduciary-like relationship driven by a single purpose: greed.”

ALPHV/BlackCat, which first appeared in late 2021, was a notorious ransomware variant linked to a series of attacks on critical infrastructure providers. The Justice Department disrupted BlackCat in December 2023, seized sites operated by some of its affiliates, and said the FBI developed a decryption tool that helped hundreds of victims restore their systems and save about $99 million in ransom payments at the time. 

Martino is scheduled to return to court Sept. 17 to determine the amount of restitution ordered against him for his crimes.

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Authorities arrested more than 5,800 alleged cybercriminals and seized $293 million in a global operation targeting social-engineering scams and money laundering across 97 countries, Interpol said Thursday.

The anti-fraud crackdown, dubbed Operation First Light, identified more than 142,000 victims, including people, businesses and governments, officials said. 

“Social engineering scams continue to pose a significant threat to our society. Criminal syndicates exploit human psychology to manipulate their targets, and no nation can stay safe unless all countries are equipped and committed to jointly fighting back,” Tomonobu Kaya, director of Interpol’s Financial Crime and Anti-Corruption Centre, said in a statement.

Police identified more than 15,500 cybercrime suspects during the operation, which spanned more than three months ending in late April, according to Interpol. Officials also analyzed more than 152,800 cases of cybercrime, including business email compromise, sextortion, romance scams, impersonation and investment schemes. 

Interpol said nearly 24,000 cases of cybercrime were solved and investigators blocked more than 31,000 bank accounts linked to malicious activity during the crackdown.

Authorities involved in the globally coordinated operation seized a high volume of devices and other equipment used to allegedly facilitate cybercrime. 

In Eswatini, police seized a replica of a Brazilian police station, including fake uniforms, signage and equipment that cybercriminals allegedly used to deceive targets into thinking they were victims of a crime, duping them into transferring funds.

While uncovering a romance scam money laundering operation in Thailand, investigators identified a 20-year-old suspect that allegedly processed more than $122.5 million in 10 months, according to Interpol. Officials in Palau identified and deported 22 people allegedly involved in a pair of scam centers operating from hotels.

“Interpol is dedicated to supporting member countries in building a comprehensive, coordinated strategy to tackle cyber-enabled financial crimes, organized criminal networks and the money laundering that fuels them,” Kaya said.

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A San Antonio man who sexually exploited children while leading 8884, an offshoot of the notorious violent extremist collective 764, was sentenced to 40 years in prison in federal court Wednesday, the Justice Department said. 

Alexis Aldair Chavez began associating with 764 as a child in 2022 when a co-conspirator introduced him to 7997, one of many 764 offshoots affiliated with the Com. The sprawling nihilistic network of thousands of people, typically between 11 and 25 years old, seek to foster social unrest by destroying civilized society through the corruption and exploitation of children and other vulnerable populations.

The 19-year-old, also known as “Zack” and “Zack8884,” attempted to coerce a girl to commit suicide and blackmailed another girl into self-mutiliation, animal torture and illicit content production in late 2023, according to court records. He later worked with multiple co-conspirators and blackmailed some of his victims to coerce other girls to degrade themselves on camera and produce child sexual abuse material (CSAM).

Chavez was arrested and has been detained without bail since October 2024. He pleaded guilty to multiple crimes involving the sexual exploitation of children in December 2025 and faced up to 60 years in prison for racketeering, distribution and possession of CSAM.

“Chavez’s crimes reveal the ruthless exploitation and manipulation at the core of nihilistic violent extremist groups,” John A. Eisenberg, assistant attorney general for national security, said in a statement. 

“These organizations target children as part of their broader mission to spread terror. These groups ultimately seek nothing less than the destruction of our society,” he added. “The National Security Division will use every resource at its disposal to identify and prosecute 764-linked criminality and to protect the most innocent among us from these predators.”

The indictment filed against Chavez in the U.S. District Court for the Western District of Texas details a series of horrifying crimes he committed with co-conspirators and some of his victims. 

Prosecutors said Chavez and a co-conspirator coerced a girl to cut her tongue, and torture and kill a cat on a live video call in late 2023. He and co-conspirators also, that same month, groomed and extorted several other girls to commit self harm and degrade themselves on camera.

Allison Nixon, chief research officer at Unit 221B, told CyberScoop the sentence is appropriate even if people understandably dislike imprisoning young people. 

“In this space, a certain personality profile is highly predictive of who will risk a prison sentence like this: an obsession with maximizing harm,” she said. 

“Reoffending after release is a huge problem. All major global hacking incidents from the Com are done by serial reoffenders — all obsessed with harmfulness, some graduated from the 764 sextortion space,” Nixon added.

Too many jurisdictions are naive in how they handle cases involving members or associates of the Com, allowing these criminals to go home to parents who won’t supervise them, she said.

Officials pressed on this in their reaction to Chavez’s sentencing as well. “Parents need to know what their children are doing online and must stay engaged, ask difficult questions, and not fall into the trap of believing their child is ‘just playing games’ or ‘just talking with their friends,’” Justin R. Simmons, U.S. attorney for the Western District of Texas, said in a statement. 

“There is darkness present within many people in this world that want nothing more than to see the United States and western civilization fail. There is no limit to the actions these individuals will take to accomplish that goal, including torturing and abusing children,” Simmons added.

Chavez, who was also ordered to pay $10,000 in restitution and serve lifetime supervised release, joins other 764 members already serving long sentences for similar crimes. Bradley Chance Cadenhed, who founded 764 as a 15-year-old in 2021, was arrested later that year and sentenced to 80 years in prison in 2023. 

When the FBI executed a search warrant at Chavez’s residence in July 2024, prosecutors said he came out the backdoor and threw his phone over a neighbor’s fence in an attempt to hide evidence.

Chavez’s sentencing follows a period of heightened law enforcement activity, which has netted arrests of multiple alleged 764 leaders and members. Some of the alleged 764 members arrested since 2025  include: Leonidas Varagiannis and Prasan Nepal, Baron Cain Martin, Tony Christopher Long, Erik Lee Madison, Zachary Sweeney and Aaron Corey. 

“True rehabilitation is the best outcome, but no one knows how,” Nixon said. 

“The total number of offenders who fit this harm-obsessed profile is vanishingly small. Giving them maximum sentences won’t overflow jails,” she added. 

Law enforcement and judges have to be realistic about what it takes to prevent the victimization of children, and handing down lifelong or lengthy prison sentences strikes the right balance between the rights of the offender and society, Nixon said.

FBI officials and agents who track these offenders and gather evidence on their crimes draw similar conclusions. 

“Nothing is more abhorrent than those who prey on children and other vulnerable members of our society and this defendant will pay a steep price for doing just that,” Coult Markovsky, acting assistant director of the FBI’s counterterrorism division, said in a statement.

“This sentencing demonstrates the FBI’s unwavering resolve to identify, hunt down, investigate, and prosecute criminals like Chavez who prey on children through violent online networks, including 764, and orchestrate horrific, unspeakable acts of exploitation and violence,” Daniel Faith, special agent in charge of the FBI San Antonio field office, said in a statement. 

“These predators use social media, messaging apps, gaming platforms, chat rooms, and video services to groom vulnerable children,” Faith added. “Staying engaged in your child’s online life, maintaining open communication, recognizing the warning signs, and reporting suspicious online activity to law enforcement are critical to stopping these offenders.”

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A 19-year-old alleged member of the Scattered Spider extortion crew was extradited to the United States last week and remains in federal custody awaiting several cybercrime charges, the Justice Department said Wednesday. 

Peter Stokes, a dual citizen of the United States and Estonia, was allegedly involved in Scattered Spider since it formed in 2022 and boasted on social media about the luxurious globetrotting life he enjoyed while he was still a child. 

The cybercrime ring of young, native English-speaking people has infiltrated more than 100 businesses since 2022, and extorted more than $100 million from its victims around the world, officials said. 

“Scattered Spider has repeatedly targeted U.S. companies, extorting employees, inflicting millions of dollars in losses, and disrupting essential operations,” Brett Leatherman, assistant director of the FBI’s cyber division, said in a statement. “Through strong domestic and international partnerships, the FBI will continue to identify, disrupt, and hold cybercriminals accountable, no matter where they are located.”

Stokes, also known as “Bouquet” and “Jordan,” is accused of participating in multiple data theft and extortion attempts, but the FBI only provided specific details about some more recent attacks on a luxury jewelry retailer in May 2025 and a U.S.-based insurance company in June 2025.

Cybercrime researchers have been tracking Stokes’ online activity since 2022.  Microsoft determined his true identity and implicated Stokes as a member of Scattered Spider in a criminal referral in October 2024, according to court records.

He was still a child at that time, and authorities typically don’t arrest known cybercriminals until they reach adulthood. Stokes lived in Estonia and the United Arab Emirates while he allegedly committed some of his crimes. 

Police arrested Stokes in Finland as he attempted to board an April 10 flight to Japan, possessing two hard drives containing allegedly incriminating evidence. He made an initial court appearance in Chicago Tuesday and was ordered to remain in jail.

Stokes exhibited an opulent life before his capture, according to his social media activity and State Department travel records. This included trips and multiple stays in luxury hotels in Paris, Italy, Spain, Germany, New York, Florida, New Mexico, Thailand and Dubai between 2024 and 2025, according to a criminal complaint filed against him in the U.S. District Court for the Northern District of Illinois.

He also posted images of watches, substantial cash and an apparently diamond-encrusted chain depicting the words “Hack the Planet.”

Officials also noted that Stokes’ family appeared to be well off, as his father was a previous executive in two major European companies. 

Stokes was charged with conspiracy, cyber intrusion and fraud offenses.

“The malicious attacks from Scattered Spider caused widespread disruption to businesses and organizations throughout the United States,” Andrew Boutros, U.S. attorney for the Northern District of Illinois, said in a statement. “These charges underscore our unwavering commitment to keeping pace with technologically savvy criminal actors and holding accountable those who seek to profit from cyber intrusions, including those located in foreign jurisdictions who do harm to American businesses and victims.”

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