Cyber criminal kingpin ‘J.P. Morgan’ appears in US court

Lengthy career

“J.P. Morgan” began his criminal career in 2011 when Reveton appeared on the scene with the then novel RaaS business model, which enables low-skilled criminals to launch effective cyber attacks by buying locker malware and other tools from more competent developers, who then take a cut of any profits made.

Reveton was a particularly nasty strain of ransomware that targeted private individuals rather than businesses. It sent its victims messages purporting to be from the police, notifying them that their screens and systems were being locked, accusing them of downloading illegal content, including pirated TV shows and even child sexual abuse material (CSAM).

It was also able to detect the use of a webcam and use it to take images of the victim to accompany the notification with a demand for payment. Many victims were coerced into handing over large sums of money in the belief that they might be imprisoned – between 2012 and 2014, Reveton is thought to have netted the gang $400,000 every month.

Meanwhile, J.P. Morgan and his network were also developing and distributing exploit kits, including the well-known Angler Exploit Kit, which was used to conduct malvertising campaigns. In these campaigns, the gang often bought ad space on legitimate websites and uploaded ads laced with Angler, which sought out vulnerabilities in the website’s system and used it to deliver malware, including Reveton without being detected by antivirus software.

At its peak, it represented 40% of exploit kit infections worldwide and turned over $34m per annum. For a time, the gang was able to operate out of a physical office in Kyiv using the name Media Lab to appear legitimate.

A British national, Zain Qaiser, of Barking in Essex, was convicted in 2019 over his involvement in the Angler malvertising campaigns. Qaiser spent the proceeds of his crime spree on high-end hotel stays, drugs and prostitutes, in addition to a £5,000 Rolex watch. In one 10-month period, said the NCA, Qaiser also spent £68,000 on gambling in a London casino.

Indictments

Along with his co-conspirators, J.P. Morgan have been charged in New Jersey with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and two counts of substantive wire fraud. They face a maximum penalty of 27 years in prison for the first charge, 10 for the second, and 20 for each of the third charges.

J.P. Morgan is additionally charged in Virginia with conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, conspiracy to commit access device fraud, and two counts each of wire fraud and aggravated identity theft. These charges carry a mandatory minimum two-year jail term, and a maximum penalty of 20 years in prison.

At this time, the indictments are merely allegations and all defendants will be presumed innocent until proven otherwise beyond reasonable doubt.

“Today, the Justice Department takes another step forward in disrupting ransomware actors and malicious cyber criminals who prey on victims in the US and around the world,” said US deputy attorney general Lisa Monaco.

“As alleged, for over a decade, the defendant used a host of online disguises and a network of fraudulent ad campaigns to spread ransomware and scam US businesses and consumers. Now, thanks to the hard work of federal agents and prosecutors, along with Polish law enforcement colleagues, Maksim Silnikau must answer these grave charges in an American courtroom.”