LONDON – In a case that reads like a high-tech thriller, a British hacker has been arrested for allegedly orchestrating a multi-million dollar insider trading scheme that targeted U.S. companies.
Robert Westbrook, 39, of London, faces extradition to the United States on charges of securities fraud, wire fraud, and computer fraud. Prosecutors allege Westbrook netted nearly $3.75 million in illegal profits by hacking into corporate email accounts and trading on stolen insider information.
According to the indictment, between January 2019 and May 2020, Westbrook allegedly gained unauthorized access to Microsoft 365 email accounts belonging to executives at five U.S.-based public companies. He then set up auto-forwarding rules to funnel sensitive information about upcoming earnings announcements to his own email accounts.
Armed with this insider knowledge, Westbrook allegedly purchased securities shortly before the earnings were made public, then sold them for a profit once the news broke. Prosecutors say he used this method to profit from at least 14 separate earnings announcements.
To cover his tracks, Westbrook allegedly employed a variety of techniques, including anonymous email accounts, VPN services, and bitcoin transactions. However, investigators say they were able to unravel the scheme using advanced data analytics and cryptocurrency tracing tools.
If convicted, Westbrook faces up to 20 years in prison for the securities fraud charge alone, with additional time possible for the wire fraud and computer fraud counts.
The case serves as a stark reminder of the vulnerabilities that exist in our increasingly digital financial system. As companies continue to rely on cloud-based services for sensitive communications, cybersecurity experts warn that similar attacks may become more common.
“This isn’t just about one hacker,” said cybersecurity analyst Sarah Lee. “It’s about the need for companies to constantly evolve their security measures to stay ahead of increasingly sophisticated threats.”
As Westbrook awaits extradition, investigators are continuing to examine the full scope of the alleged scheme. The case is expected to go to trial later this year, potentially setting important precedents for how similar cyber-enabled financial crimes are prosecuted in the future.