British Citizen Arrested On Charges Of 'Hack-to-Trad' Scheme In US, Raises Illegal Profit Of IDR 57 Billion

Hackers hack computers from five companies to get information about their estimated earnings (photo: dock. pexels)

JAKARTA - A British man, Robert Westbrook (39) from London, has been arrested and charged by US authorities on charges of hacking computers from five companies for information on their estimated income. The information was then used to achieve illegal gains of 3.75 million (approximately IDR 57 billion) through stock trading before the financial proceeds were released.

The US Department of Justice will seek Westbrook's extradition to the United States to face charges of securities fraud, fraud via internet, and five counts of computer hacking. The indictment was publicly announced on Friday 27 September. Westbrook was arrested this week in the UK and is also facing civil charges related to the US Securities and Exchange Commission (SEC). Until now, Westbrook's attorney has not been identified.

Five companies that were victims of the hack were not named in court documents at the Federal Court ofTEN, New Jersey. However, financial details and stock prices in SEC complaints show that the companies are makers of the Tupperware food containers, general contractor Tutor Perini, software provider Guidewire Software, gasoline station operator Murphy USA, and telecommunications equipment maker Lumentum Holdings.

Authorities said that Westbrook's "hack-to-trade" scheme involved hacking the company's executive email account between January 2019 and May 2020. He used unpublished information to buy shares and options before at least 14 earnings announcements. On several occasions, Westbrook also arranged for content from executive email accounts to be automatically forwarded to his personal account.

Jorge Tenreiro, the interim head of the SEC's crypto and cyber asset units, described Westbrook's actions as sophisticated international hacking, including the use of anonymous email accounts, VPN services, and bitcoins to hide his illegal activities.

Five companies that are victims are not accused of wrongdoing. The charges of securities fraud and fraud via the internet each carries a maximum prison sentence of 20 years, while each computer hacking charge carries a maximum sentence of five years.