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Plus: 11 Charged In $10.6 Billion Medicare Fraud

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Back in 2018, the FBI learned of a hack that may have cost some informants their lives.

A Justice Department report released last week  reveals that while the FBI was working on the infamous “El Chapo” drug trafficking case, a tipster told the agency that its assistant legal attache in Mexico had been monitored by a hacker. Though the method of attack wasn’t revealed, an investigation found the hacker had obtained call and location data from the attache’s phone and surveillance video Mexico City's camera system. “According to the case agent, the cartel used that information to intimidate and, in some instances, kill potential sources or cooperating witnesses,” the report read.

As disturbing as it is, the report isn’t all that surprising. Mexico’s narcotics gangs have long been tech savvy. They are known to use cryptocurrencies for money laundering and. their hacking capabilities are well known. In 2023, Vice News reported that cartels had been using the same intelligence and security software used by the government to locate and disappear people. Back in 2015, the publication reported that cartels had employed hacker crews to set up a secure network for bosses and underlings to use.

Got a tip on surveillance or cybercrime? Get me on 
Signal at +1 929-512-7964.

Thomas Brewster Associate Editor, Cybersecurity

Follow me on Forbes.com

The Big Story
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11 Charged In $10.6 Billion Medicare Fraud
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The DOJ has announced charges against 11 individuals in a $10.6 billion Medicare fraud scheme, believed to be one of the biggest crimes of its kind. The government alleged  the group, which was partly based in Russia and other Eastern European countries, submitted billions of dollars in false healthcare claims using personal data stolen from more than 1 million Americans.
The Stories You Have To Read Today
Multiple airlines in the U.S. and Canada have been targeted by a group of hackers going by the name Scattered Spider. It’s the same group that hacked major retailers and insurance companies earlier this year.

British national Kai West has been identified as man behind the “IntelBroker” moniker and charged with helping to steal data from over 40 organizations to offer it for sale for $2 million. The DOJ said he and unnamed co-conspirators were responsible for over $25 million in damages. West was arrested in France and the U.S. is seeking his extradition.

CISA, the FBI, the DOD and the NSA put out a joint alert on Monday, warning about the potential for Iranian cyberattacks on American critical infrastructure. “Defense industrial base companies, particularly those possessing holdings or relationships with Israeli research and defense firms, are at increased risk,” CISA wrote.

Iranian-linked hackers told Reuters they have access to around 100 gigabytes of emails from accounts belonging to President Trump’s confidantes including White House chief of staff Susie Wiles, adviser Roger Stone and Stormy Daniels, the former porn star who accused Trump of making a hush money payment over a sexual encounter they had.

The International Criminal Court said on Monday it had been the victim of a cyberattack. Details were thin on the ground, but the war crimes court said it had “detected a new, sophisticated and targeted cyber security incident, which has now been contained.”

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Winner Of The Week
Cato Networks has raised $359 million as it looks to expand its cyber business that tries to simplify the job of chief security officers by bringing security products like firewalls and gateways into one platform that’s run on a global private network. Cofounded and led by longtime cybersecurity entrepreneur Shlomo Kramer, it’s now valued at $4.8 billion.
Loser Of The Week
U.S. national Zhenxing “Danny” Wang has been indicted for allegedly running a scheme to help remote North Korean IT workers infiltrate U.S. tech companies. The DOJ said the workers fraudulently made $5 million for the North Korean regime. Previously, reports had indicated such schemes have been used to help fund the country’s nuclear program.
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