Gang Members Sentenced to Six Years for Tenerife Bank Hack Scheme

The Provincial Court of Santa Cruz de Tenerife has sentenced six members of a criminal gang to a total of 36 years in prison, along with a fine of 2.5 million, for illegally hacking into bank accounts and employing over a hundred individuals to funnel the stolen funds.

The six individuals, who operated from southern Tenerife, faced charges of continuous fraud and membership in a criminal organisation. They reached an agreement with the Prosecutor’s Office, accepting a six-year prison term each and a shared compensation payment, which has now been confirmed.

Evidence revealed that since May 2019, the six accused, either directly or through the hundred accomplices they collaborated with, illicitly amassed wealth, establishing companies that formed a “tiered and hierarchical” structure to facilitate their activities.

Responsibilities were assigned for carrying out large-scale unauthorised transfers from bank account holders based in Italy and Spain, from which they appropriated the funds.

To achieve this, they enlisted the help of third parties who had previously agreed to participate, delivering the received money to the gang members.

The organisation was primarily established in Arona and Adeje, where the six defendants resided and performed various roles, such as identifying potential victims using information and communication technologies.

They also sought individuals who, aware of the illegality of their actions, provided their bank details to facilitate the transfer of funds, which were then withdrawn from ATMs and delivered directly to the accused.

This money was subsequently either transferred again or converted into cryptocurrencies and stored in a “cold wallet” that was easily concealed once removed from the legitimate banking system for their personal use.

This criminal network based on the island operated under the direction of unidentified individuals residing in Italy who received the majority of the profits generated by the six convicted members.

Ultimately, the defendants were obligated to remit 60% of their fraudulent earnings to that country, which resulted in internal debts requiring further criminal operations.

The remaining 40% was retained by the defendants as a variable percentage, after compensating the mules as agreed, while coordinating their activities through phone calls, electronic messages, or meetings at hospitality venues.

Two of the members focused on victim recruitment using computer techniques known as phishing and identity theft, while two others located the mules, and one specialised in acquiring cryptocurrencies.

Their strategy involved the mass distribution of fraudulent messages appearing to originate from banking entities, informing customers of supposed technical issues or fraud attempts, directing them to a link where they were impersonated by scammers to extract sensitive information.

Initially, the organisation members utilised their own accounts or those of certain companies, receiving up to 827,000 euros while simultaneously establishing a network of banking mules.

One of the victims involved a company based in Jerez de la Frontera that engaged in international electronic commerce, resulting in the funds it sent ultimately reaching the hands of the defendants.

Ultimately, through this operation, they managed to extract 2.5 million euros, an amount they are now required to reimburse to the victims, who have been in provisional custody since May 2021.

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