Bank hackers set up 'massive network' to mine Bitcoin for money laundering

An international cybercrime ring that stole more than €1 billion by hacking into bank ATMs has been laundering the proceeds using cryptocurrencies, Europol has revealed, after investigators from around the world teamed up to capture the mastermind behind the sophisticated criminal group.

Malicious ATM hacking gang

Europol announced on Monday that the leader of the criminal gang behind the Carbanak and Cobalt malware attacks had been arrested in Spain in an operation backed by the FBI, Romania, Belarus, Taiwan and cybersecurity companies.

Under the leadership of the ringleader, the criminals allegedly sent phishing emails containing malware to bank employees. Once downloaded, the malware could remotely control the employees' infected devices, allowing the criminals to access the internal bank network and infect and control the ATM servers. They launched attacks on banks in more than 40 countries, causing cumulative losses of more than 1 billion euros.

Europol revealed that the illegal proceeds were laundered through digital cryptocurrencies, and they used prepaid cards linked to cryptocurrency wallets to buy things such as luxury cars and luxury homes. Steven Wilson, head of the European Cybercrime Center, commented, "The arrest of the core members of this criminal group shows that cybercrime can no longer hide in transnational anonymity."

Carbanak/Cobalt's global reach

Mastermind Dennis K.

The Spanish Ministry of the Interior revealed more details of the case. The arrested mastermind was called "Dennis K". Also arrested were three other members of the gang from Russia and Ukraine. During the raid, the police seized their bank accounts, a house worth 1 million euros, jewelry worth 500,000 euros and two luxury cars.

The Ministry of the Interior revealed that the stolen funds were converted into Bitcoin on cryptocurrency exchanges in Russia and Ukraine and then transferred to their wallets, which accumulated 15,000 Bitcoins. The leader of the criminal gang used Bitcoin to recharge prepaid cards on financial platforms in Gibraltar and the UK, and then spent them in Spain. He also established a "huge network" to mine Bitcoin as a means of money laundering.

How Carbanak/Cobalt attacks work