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Stolen Data
cyber espionage tools Cyber Security CyberCrime Cybercrime Markets Dark web marketplace Department of Justice Marketplace Personal Data Stolen Data

U.S. Justice Department Shuts Down Rydox Cybercrime Marketplace

 

The U.S. Justice Department announced on Thursday the successful seizure and dismantling of Rydox, a notorious online marketplace for trafficking stolen personal information and cybercrime tools. In a coordinated operation with international law enforcement agencies, three individuals allegedly responsible for administering the site were arrested.

Since its inception in 2016, Rydox has been linked to over 7,600 illicit sales, generating significant profits by selling sensitive data such as credit card details, login credentials, and personally identifiable information (PII). Authorities reported that the platform offered 321,372 cybercrime products to a user base of more than 18,000 registered buyers, earning over $230,000 in revenue.

The Coordinated Crackdown

This operation involved multiple law enforcement agencies, including:

  • FBI’s Pittsburgh Office
  • Albania’s Special Anti-Corruption Body (SPAK)
  • National Bureau of Investigation (BKH)
  • Kosovo Special Prosecution Office
  • Kosovo Police
  • Royal Malaysian Police

Authorities apprehended two Kosovo nationals, Ardit Kutleshi (26) and Jetmir Kutleshi (28), in Kosovo. Both suspects will be extradited to the Western District of Pennsylvania to face charges including identity theft and money laundering. A third individual, Shpend Sokoli, was arrested in Albania and will face prosecution in his home country.

As part of the operation, law enforcement seized the domain Rydox.cc and its associated servers located in Kuala Lumpur, Malaysia. Additionally, U.S. authorities confiscated approximately $225,000 in cryptocurrency linked to the defendants, effectively dismantling the infrastructure supporting Rydox’s operations.

Global Cooperation in Combating Cybercrime

Eric Olshan, U.S. Attorney for the Western District of Pennsylvania, emphasized the importance of international collaboration in tackling cybercrime networks. “The harms can be devastatingly local,” Olshan stated, underlining how these crimes, though orchestrated globally, impact individuals and communities directly. He reiterated the Justice Department’s commitment to holding cybercriminals accountable.

Rydox has long symbolized the darker side of digital innovation, where stolen data is exploited for illicit profit. By providing a marketplace for cybercrime tools and sensitive information, it enabled thousands of buyers to commit fraudulent activities that affected both individuals and organizations.

Implications of the Takedown

The successful takedown of Rydox marks a significant victory in the fight against global cybercrime. It highlights the importance of multinational efforts in addressing online criminal networks. However, it also serves as a reminder of the persistent threats posed by similar platforms.

The arrests and dismantling of Rydox send a strong message to cybercriminals: no one is beyond the reach of international law enforcement agencies. This operation underscores the commitment of global authorities to combat cybercrime and protect victims from its devastating consequences.

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Tech
ad-based infiltration cyber espionage tools Cyber Fraud data collection Ads Israeli spyware Spy Spyware Tech

Investigation Exposes Covert Israeli Spyware Infecting Targets through Advertisements

 

Insanet, an Israeli software company, has reportedly developed a commercial product named Sherlock, capable of infiltrating devices through online advertisements to conduct surveillance on targets and gather data for its clients. 

This revelation comes from an investigation by Haaretz, which disclosed that the spyware system was sold to a non-democratic country. This marks the first public disclosure of Insanet and its surveillance software. Sherlock is capable of infiltrating devices running Microsoft Windows, Google Android, and Apple iOS, as per the provided marketing information.

According to journalist Omer Benjakob's findings, this is the first instance worldwide where a system of this nature is marketed as a technology rather than a service. Insanet obtained approval from Israel's Defense Ministry to globally market Sherlock as a military product, subject to stringent restrictions, including sales exclusively to Western nations. Even presenting it to potential clients in the West requires specific authorization from the Defense Ministry, which is not always granted.

Founded in 2019, Insanet is owned by individuals with backgrounds in the military and national defense. Its founders include Dani Arditi, former chief of Israel's National Security Council, and cyber entrepreneurs Ariel Eisen and Roy Lemkin. Despite attempts to reach out, Arditi and Lemkin did not respond to inquiries, and Eisen could not be reached for comment.

Insanet affirmed its adherence to Israeli law and strict regulatory guidelines. In marketing its surveillance software, Insanet collaborated with Candiru, an Israel-based spyware manufacturer previously sanctioned in the US. The combined offering includes Sherlock and Candiru's spyware, with the former priced at six million euros ($6.7 million, £5.2 million) for a client.

The Haaretz report cited a Candiru marketing document from 2019, confirming Sherlock's capability to breach Windows-based computers, iPhones, and Android devices. Traditionally, different companies specialized in breaching distinct devices, but this system demonstrates the ability to effectively breach any device.

The Electronic Frontier Foundation's Director of Activism, Jason Kelley, expressed concern over Insanet's use of advertising technology to infect devices and surveil targets. Dodgy online ads not only serve as potential carriers for malware but can also be tailored to specific groups of people, making it particularly worrisome.

Sherlock stands out for leveraging legal data collection and digital advertising technologies, commonly favored by Big Tech and online media, for government-level espionage. This differs from other spyware like NSO Group's Pegasus or Cytrox's Predator and Alien, which tend to be more precisely targeted.

Mayuresh Dani, Qualys' threat research manager, likened the threat to malvertising, where a malicious ad is broadly distributed to unsuspecting users. In this case, however, it involves a two-stage attack: first profiling users using advertising intelligence (AdInt) and then delivering malicious payloads via advertisements, making unsuspecting users vulnerable to such attacks.
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