A U.S. federal jury has convicted 25 people in connection with an international business email compromise scheme that defrauded more than 1,000 victims, including Canadians, out of nearly US$215 million. Authorities said the fraud involved hacked email accounts, fake payment instructions, shell companies, and money laundering through bank accounts, cashier’s checks, cryptocurrency, and cash-transfer systems.

A U.S. federal jury has convicted 25 people in connection with a major international hacking and fraud scheme that stole nearly US$215 million from more than 1,000 victims, including Canadians.

According to U.S. authorities, the scheme targeted individuals, businesses, and organizations across dozens of U.S. states and 19 countries. Prosecutors described the fraud as a form of business email compromise, a type of cyber-enabled fraud in which criminals gain access to email accounts and use that access to study business relationships, payment patterns, and communications.

Once the fraud groups had gathered enough information, conspirators allegedly sent fraudulent emails that appeared to be part of legitimate business transactions. Victims were then convinced to send wire transfers to accounts controlled by members of the scheme.

Authorities said the stolen money was moved through a web of fake bank accounts, shell companies, cashier’s checks, cryptocurrency, and cash-transfer systems. Wire transfers from victims ranged from tens of thousands of dollars to millions of dollars. In one case, a business was allegedly defrauded of US$2.7 million through a shell company bank account controlled by a member of the conspiracy.

The investigation also uncovered significant assets connected to the alleged laundering operation. Authorities reported finding nearly US$1.2 million in cashier’s checks, cryptocurrency, and cash, along with luxury watches and a large residence in Georgia.

Prosecutors said nearly US$50 million of the stolen funds was used to purchase cashier’s checks that were presented to a Chicago-area money service business. The owner of that business was accused of continuing to process checks despite warnings from banks that the funds were connected to fraud.

Three defendants were convicted of wire fraud conspiracy following trial. Two of them were also convicted of money laundering conspiracy. Twenty-two other defendants pleaded guilty to wire fraud and money laundering conspiracy.

The case highlights the scale of business email compromise schemes and the risks they pose to companies, organizations, and individuals. Unlike some consumer scams, these schemes often rely on detailed surveillance of email communications and business practices before fraudulent payment requests are made. That makes the emails appear more credible and can cause victims to believe they are simply completing an ordinary transaction.

Business email compromise remains one of the most financially damaging forms of cyber fraud. The scheme also demonstrates how stolen funds can be rapidly dispersed through multiple accounts, companies, and payment systems, making recovery difficult once a transfer has been completed.

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Originally published on Canadian Fraud News.