A New Haven, Connecticut, resident has been sentenced to a year in prison after running a lucrative darknet phishing scheme. Michael Richo, 37, managed to raise over $350,000 after hacking into more than 10,000 accounts belonging to darknet users.
Richo's Phishing Technique
Evidence presented in court shows that Richo specifically targets dark web users
He used an automated computer system that would send him users’ credentials after they entered his sites. To lure people into his phishing scheme, he created websites that resembled Darknet websites. He also created fake links that resembled links created by other darknet users. Once unsuspecting users clicked on the link, they were taken to his website instead of the authentic website.
A login prompt appears on the screen, where users enter passwords that will be sent to Richo. In this way, his computer system allowed him to obtain the login credentials of many dark web users. This also allowed him to see how much Bitcoin funds the dark web user had in their account and monitor every transaction there.
Once the Bitcoin wallet showed a deposit, Richo would withdraw the funds just before the account owner had a chance to use them or convert them into cash. He would then deposit the stolen funds into his own Bitcoin wallet or trade them on the forex markets to get the currency in return. He would then link them to bank accounts under his name, from where he would access funds through international money transfer companies like MoneyGram and Western Union or through debit cards like Green Dot Cards.
The arrest of Richo
Richo was arrested in October 2016 after authorities caught him stealing identities and transferring cryptocurrency to his wallet without the consent of the account holders. A search of his home revealed computers and other electronic devices used to obtain user passwords through malware. A variety of precious metals and coins were also found in his possession, which were reported to have been purchased using money he stole from victims' accounts.
Judgment
Richo was charged with identity theft, computer fraud and money laundering. At the time, Richo was facing up to 30 years in prison if convicted on all charges. Earlier this month, he appeared in court in New Haven, where he was sentenced to 366 days in prison. The judge also ordered that Richo be placed on probation for three years after his release.
