US charges five individuals linked to ‘Scattered Spider’ crypto theft

Federal prosecutors have charged five alleged members of the “Scattered Spider,” a hacking group accused of targeting companies and individuals with a series of cyberattacks.

The defendants allegedly stole sensitive data and at least $11 million in cryptocurrency between late 2021 and mid-2023, according to court documents unsealed in California on Wednesday.

The group reportedly uses tactics such as phishing and SIM swapping, posing as trusted entities via text, to trick victims into sharing their login information, according to Bloomberg. In SIM swapping, a hacker takes control of the victim’s phone number to bypass security and access accounts.

Prosecutors said hackers targeted company networks to steal confidential information and gain control of cryptocurrency accounts and wallets, according to Bloomberg.

Scattered Spider members

Unlike many cybercrime groups, which mostly have links to countries such as Russia or North Korea, Scattered Spider’s members are based in the US and UK

Defendants—Noah Urban, 20, of Florida; Joel Evans, 25, from North Carolina; Ahmed Elbadawy, 23, and Evans Osiebo, 20, from Texas; and Tyler Buchanan, 22, of Scotland, face charges related to attacks on at least 29 people and multiple businesses.

“This case shows how a small group of individuals can cause major damage to businesses and individuals in a short period of time,” U.S. Attorney for the Central District of California Martin Estrada told Bloomberg.

The victims included telecommunications companies, IT outsourcing firms and a cryptocurrency exchange.

Approximately $4 million worth of cryptocurrency was recovered, but researchers are still assessing total financial and data losses. Court filings show Buchanan, who is outside the United States, was identified through domain name registrations for fake websites used to deceive victims.

Lawyers for most of the defendants were unable to comment. Urban, known as “Sosa” in the SIM-swapping community, pleaded guilty to related charges earlier this year, according to Bloomberg.