Idris Dayo Mustapha, a United Kingdom citizen, faces federal charges in Brooklyn, including computer intrusion, securities fraud, money laundering, bank fraud, and wire fraud. The allegations span from 2011 to 2018, during which Mustapha purportedly accessed U.S.-based computers, including those of financial institutions, engaging in activities such as stealing funds from online bank accounts and securities brokerage accounts. Following his arrest in the United Kingdom in August 2021, the United States seeks his extradition to the Eastern District of New York.
Mustapha and his co-conspirators allegedly acquired login information for victims’ securities brokerage accounts through various means, enabling them to steal money and execute trades for personal gain. The complaint outlines instances where they accessed victims’ email accounts without authorisation, obtaining financial and personal information. Subsequently, they contacted victims’ financial institutions to request wire transfers to overseas accounts under their control.
United States Attorney Peace emphasised the magnitude of cybercrimes orchestrated by Mustapha and his group, causing millions of dollars in losses through hacking, fraud, and manipulation of securities brokerage accounts. Mustapha faces potential imprisonment of up to 20 years for each money laundering, wire and securities fraud charge, along with a mandatory consecutive two-year sentence for aggravated identity theft.
In a related development, Idris Dayo Mustapha, a British-Nigerian individual, has pleaded guilty in New York to charges related to cyberattacks spanning over seven years. The scheme involved hacking into banks and brokerages’ computer servers, resulting in losses exceeding $6 million for customers.
Mustapha, born in Lagos, awaits sentencing on April 3, 2024, facing a maximum sentence of 20 years. His guilty plea includes charges of access device fraud, conspiracy to commit computer intrusion and securities fraud, and conspiracy to commit wire fraud.
The cyberattacks on banks underscore the interconnected risks in the banking system. According to experts, a cyberattack on one of the five most active U.S. banks could impact 38% of the network. State-sponsored hacking, particularly by countries like Russia, China, and North Korea, poses a significant threat to the financial sector.
While consumers are relatively protected, businesses with fewer safeguards could face greater losses. Cybersecurity remains a paramount concern for banks, with financial organizations averaging $5.97 million per breach, according to the 2022 IBM Cost of a Data Breach Report. Escalating cyberattacks could potentially threaten the solvency of major banks.
