Russian Government Confirms Rare Criminal Charges Against Ransomware Hacker
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Russian Government Confirms Rare Criminal Charges Against Ransomware Hacker

The Russian government has confirmed the indictment of a 32-year-old resident, who authorities accuse of creating and launching ransomware attacks. Russian prosecutors said last week that they charged the unnamed hacker with the creation of ransomware to gain ‘illegal profit.’

A Rare Arrest in Russia’s Cybercrime Landscape

The arrest of a suspected ransomware member from inside Russia’s borders is rare, though not unheard of. The Russian government has a long history of shielding its citizens from U.S. law enforcement actions, including indictments and extraditions associated with cybercrime.

Criminal Charges Filed Against the Accused Hacker

In a brief statement last week, the Kaliningrad prosecutor’s office confirmed it filed criminal charges against the individual with the local courts. The prosecutor’s statement said authorities established in January 2024 that the accused hacker ‘planned to use the malicious program to encrypt the data of commercial organizations with the subsequent receipt of a ransom for decryption,’ describing how hackers deploy ransomware.

Authorities Fail to Name the Suspected Ransomware Hacker

Authorities did not name the suspected ransomware hacker. Russian media outlet RIAnamed the suspect as Mikhail Matveev, a 32-year-old resident of Kaliningrad, who is on the FBI’s most wanted list for allegedly launching ransomware attacks against U.S. companies.

Matveev’s History with Ransomware Gangs

U.S. authorities previously linked Matveev — currently with a $10 million U.S. State Department bounty for information leading to his arrest — to the Babuk, Hive, and LockBit ransomware gangs. Matveev previously told TechCrunch that he ‘burned’ his passport to avoid getting caught by a country overseas that has an extradition treaty with the United States — which Russia does not.

Matveev’s Response to the Indictment

Matveev did not respond to a message sent by TechCrunch on Monday. A tweet posted by an X account known to be run by Matveev last posted on December 1, the first post on the account since mid-October.

Government Response to the Indictment

Spokespeople for the Russian government in Moscow and the Russian embassy in Washington, DC, did not return emails requesting comment. The FBI did not comment Monday on the report of Matveev’s arrest.

Ransomware Attacks: A Growing Concern

U.S. government officials have long accused Russia of taking little action against cybercriminals who operate within its borders. U.S. intelligence chiefs reiterated earlier this year that the U.S. and its allies would continue to experience ransomware attacks because Russia provides ‘safe haven’ to hackers who target Western businesses and governments.

A Rare Statement from Russian Authorities

The arrest — and public disclosure of it — of a ransomware operator in Russia is rare. Russian authorities arrested several members of the REvil ransomware gang in 2022, weeks after a cyberattack by the gang on Colonial Pipeline, a major gas and oil pipeline that runs up the U.S. East Coast.

The Impact of Ransomware Attacks

Security researchers say that 2024 is on track to become a record-breaking year for profits from ransomware attacks and will likely become a major priority for the second Trump administration, which is set to take office in January.

Ransomware: A Growing Concern Worldwide

Cyberattacks have become a significant concern globally. According to recent reports, the number of ransomware attacks has increased significantly in recent years. The impact of these attacks can be devastating, resulting in financial losses and compromised sensitive information.

The Need for International Cooperation

To combat the growing threat of ransomware, international cooperation is essential. Governments, law enforcement agencies, and private companies must work together to share intelligence, best practices, and resources to prevent and respond to ransomware attacks.

Conclusion

The indictment of a 32-year-old Russian resident for creating and launching ransomware attacks highlights the need for stronger cybersecurity measures worldwide. The impact of these attacks can be significant, resulting in financial losses and compromised sensitive information. International cooperation is essential to combat this growing threat.

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