A South Korean court sentenced two executives at a data recovery company to three years in prison each for working with a ransomware group that targeted businesses.

The executives, identified only as A and B, allegedly received information from hackers about the file extensions used to encrypt victims’ data. They then used the information to place online search ads for recovery services.

After victims paid for recovery, the company sent part of the money to the hackers in Bitcoin. The hackers provided decryption tools that were then used to restore the victims’ files.

The scheme operated from October 2018 to July 2022 and involved 730 recovery cases, with the company receiving about 2.6 billion won (€1.5 million). The Seoul Central District Court sentenced both executives to three years in prison. The court considered their smaller share of the profits as a mitigating factor.

A cybercriminal who used AI to steal digital identities arrested in Spain

Spanish National Police have arrested a cybercriminal in Murcia who allegedly used artificial intelligence to trick a digital identity verification system.

The suspect appeared in video calls with a fake ID while AI technology changed his face in real time to match the person shown in the document. He made 38 attempts using more than 30 different identities.

The suspect also used fake IDs, manipulated photographs and homemade lights to imitate the security features and holograms found on real identity documents. He also used VPNs and many mobile phones to hide his identity.

The investigation began after a company that issues digital certificates noticed several suspicious applications. During one video verification, the AI system briefly failed and showed the suspect’s real face.

Police found more than 320 phone lines linked to 24 mobile devices, many of them registered using stolen identities. During a search, officers also seized an encrypted laptop, several mobile phones, storage devices and documents. Authorities believe the suspect wanted to obtain valid digital signatures to use later for financial fraud.

Three police officers arrested over alleged misuse of surveillance data

Three Bibb County sheriff’s deputies in Georgia, the US, have been arrested over allegations that they misused surveillance and traffic-control technology.

The Flock surveillance system is an automated license plate reader (ALPR) and public safety platform designed to monitor and record vehicle movements.

According to local media reports, the deputies Joseph Marquee Callaway, Coznavian Torsell Stubbs and Toni Cierra Lewis are each facing at least one felony stalking charge. They are also accused of violating their oaths as public officers.

Callaway faces three counts of stalking, along with two counts related to the prohibited use of a traffic-control device preemption emitter and one oath-of-office violation. Stubbs faces charges of stalking, oath-of-office violation and prohibited use of a traffic-control device preemption emitter.
The Bibb County Sheriff’s Office said the cases are separate and involve people with whom the deputies had personal relationships.

The alleged misuse of the Flock surveillance system was discovered during a monthly audit of system searches by the Sheriff’s Office. Officials said the deputies made unlawful queries of the system.

Ukraine shuts down over 90 fraudulent call centers in a nationwide operation

Ukrainian law enforcement agencies have shut down 94 fraudulent call centers during a large-scale operation carried out across several regions of the country. Police conducted 411 searches and found 1,794 fully equipped workstations. So far, 26 suspects have been formally charged.

Law enforcement officers seized more than 3,300 computers, 1,346 phones, over 5,200 SIM cards, 90 bank cards and access tools for 20 cryptocurrency wallets. Authorities also confiscated 22 cars, around $2 million, €64,000, cash in Ukrainian hryvnia, one kilogram of gold bars and jewelry. Police checked 867 addresses where fraudulent call centers were believed to operate and identified 67 financial tools linked to the crimes, including bank accounts, cryptocurrency wallets and people used to move money.

The call centers used different schemes to steal money or gain access to victims' bank accounts. Operators often pretended to be bank employees, brokers or law enforcement officers. They warned victims about fake suspicious transactions, offered false investment opportunities or promised to recover money lost in previous scams. Victims were persuaded to transfer money, take out loans, share bank details and confirmation codes, or install remote-access software on their devices.

Some of the call centers targeted people in other countries. In one case, Ukrainian police are working with German authorities to investigate a network that targeted EU citizens through fake investment platforms and remote-access software.

The suspects face charges including fraud and money laundering. Depending on their role, they could face up to 12 years in prison and confiscation of property.

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Police arrest suspects in €29M illegal gambling and exploitation case

South Korean police have arrested two men accused of running illegal adult-content websites that were used to promote more than 10 illegal gambling sites.

The suspects, aged 40 and 36, were sent to prosecutors in custody. Police are also investigating more than 10 other people, including alleged leaders based overseas. The group is accused of operating the websites from the Philippines and other locations, including two illegal adult-content sites used to attract visitors to gambling sites, 18 gambling sites and 587 gambling distributors.

The gambling sites handled about 4.7 trillion won (€2.87 billion) in bets over five years. Police estimate that the group made about 47.6 billion won (€29.1 million) in illegal profits, excluding money returned to gamblers.

One suspect managed operations in the Philippines. The other, who has a doctorate in computer science, allegedly led the development, security and maintenance of the websites. Police said he used virtual servers and other security techniques to avoid detection. One suspect was arrested at Incheon Airport on August 2 after being placed on an Interpol Red Notice. The second was arrested at his home the following day.

Police have shut down 10 of the illegal adult-content and gambling sites and are working to take down the remaining sites. Authorities also plan to seek Interpol Red Notices for two alleged leaders who are still abroad.

Meanwhile, in the UK, a 20-year-old British man linked to the so-called “Com” group was sentenced to two years in prison for sexually exploiting and threatening 117 teenage girls online. The term ‘The Com’ refers to loosely connected online groups where members pressure victims into self-harm and sexual abuse to gain recognition and status within the group.

Using platforms such as Snapchat, Telegram and Discord, Justin Swaddle pressured victims to send sexual images and harm themselves, using threats to blackmail them. He pleaded guilty to multiple child sexual abuse offenses and blackmail and will face restrictions for 10 years after his release.