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The federal Justice Department has charged two Iranian men for their part in a 34-month long international hacking and extortion scheme that led to the loss of millions of dollars.
A six-count indictment charged both Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud related to computers, and other counts accusing them of intentionally damaging protected computers and illegally transmitting demands related to protected computers.
The two allegedly created the ransomware program “SamSam,” which they used to disrupt the computer systems of hospitals, municipal offices and other public entities in both Canada and the US. In America alone, the ransomware attack affected cities such as Atlanta, GA, and Newark, NJ, causing more than $30 million in losses to victims.
Other entities affected by SamSam include the Port of San Diego, the Colorado Department of Transportation, the University of Calgary in Canada, and at least six healthcare-related companies.
Prosecutors said that the ransomware forcibly encrypted data on affected computers, locking users out of their own systems. The duo then demanded victims pay a ransom in exchange for decryption of the hacked systems. Savandi and Shah asked their victims to pay in Bitcoin, which they exchanged for Iranian rials.
Through their scheme, the two managed to collect $6 million, the Justice Department said.
Reuters reported that Savandi and Shah turned to two individuals – Ali Khorashadizadeh and Mohammad Ghorbaniyan – to have the Bitcoins exchanged into rial; the news portal could not immediately reach the four Iranians for comment.
