A 34-year-old man from Pakistan has been accused of bribing AT&T employees to unlock more than 2 million phones.
Scheme Cost AT&T Millions Of Dollars
Muhammad Fahd allegedly paid employees at AT&T's customer service call center in Bothell, Washington to have backend access to phones that had been purchased under contracts that require owners to subscribe the company's cell service and data plan.
In a statement released on Monday, the Department of Justice said that the AT&T employees that received payment from Fahd unlocked the phones so the devices could work outside of AT&T's network. Fahd then allegedly resold the unlocked phones at a lower price.
The scheme reportedly cost AT&T millions of dollars as millions of phones were being removed from the company's service, or payment plans.
The alleged scheme started not later than April 2012 and lasted for about five years. The Justice Department said the fraud continued long enough that Fahd also managed to convince company employees to install malware on AT&T computers, so he could unlock the phones remotely.
More Than $1 Million For Access To 2 Million Phones
According to the indictment, Fahd paid his conspirators tens of thousands of dollars to unlock phones and recruit others into the ring. One employee received more than $400,000.
Fahd paid out more than $1 million for access to 2 million phones. Three of his accomplices have pleaded guilty for their participation in the scheme, and are now cooperating with the U.S. government.
Muhammad Fahd Faces Up To 20 Years In Prison
Fahd was arrested in Hong Kong in February 2018 and was extradited to the United States on Friday, Aug.2. He made his first appearance in a federal court in Seattle on Monday.
He faces a slew of charges which include wire fraud and conspiracy to violate the Computer Fraud and Abuse Act. He faces up to 20 years in prison if found guilty of these charges.
"This arrest illustrates what can be achieved when the victim of a cyber attack partners quickly and closely with law enforcement," Assistant Attorney General Brian Benczkowski of the Justice Department's Criminal Division, said in a statement.
"When companies that fall prey to malware work with the Department of Justice, no cybercriminal — no matter how sophisticated their scheme — is beyond our reach."
