Hacked - Private Eyes

Episode Date: August 1, 2022

The story BellTroX and the world of private investigators outsourcing the nitty gritty stuff. Like Hacked? Subscribe, spread the word, and visit https://www.patreon.com/hackedpodcast to show us some love. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Former CEO of Wirecard has been arrested on suspicion of falsifying accounts. Let's talk about Nigeria and it's a little. A dramatic turn taking place in the WeWork saga. All of these legal trials have one thing in common. And it all starts in a Hollywood apartment. It's 2013 and Carlos Pasilio is working as a bodyguard for a multi-level marketing entrepreneur. This guy named Ryan who started a company that sells diet shakes. And Carlos's boss Ryan is embroiled in a bunch of lawsuits with one of his big competitors, this company called Ocean Avenue.

And the boss Ryan tells Carlos, I want to dig up some dirt for this lawsuit. And when you want dirt for a lawsuit, who do you go to? Private investigators? And Carlos says, I know one of those. because before Carlos was an MLM founder's bodyguard, he worked in Afghanistan with the private mercenary firm Blackwater. And while he was there, he met this former sheriff's deputy named Mosier, who was now a private investigator. So Carlos calls him up, and they had this meeting in this apartment in Hollywood. Mosier is an old school PI.

He rolls up with like a duffel bag full of spy kit, like cameras and microphones, but none of it is quite right for this job. The evidence that they're looking for isn't happening in like a room or over the phone. It was happening in emails and direct messages. But the private investigator, Mosier, tells Carlos about this other option, about this guy that he knows who can help, named Summit Gupta, or main character. Gupta was a hacker. We don't know how Mosier met him, but Gupta promised he could get into Ocean Avenue's emails and get the evidence they were looking for for the lawsuit.

So they all make a deal. The PI Mosier goes on the payroll, gets his 10K a month retainer, and he starts outsourcing the job to the hacker Gupta. Gupta gets to work, hacking the competition. I just want to like, maybe I know nothing about law, clearly not a lawyer, but wouldn't a bunch of stolen evidence not be considered evidence? Yeah, this story goes terribly for pretty much everybody. Ocean Avenue finds out that their executives got hacked by Gupta.

They sue Ryan's company on extortion intimidation hacking charges, who ends up settling for some big undisclosed sum. Then the FBI finds out and says, yeah, a civil suit isn't going to cut it for what you did. And they go after Carlos and the PI Mosier. In 2015, they raid their homes and eventually both end up pleading guilty to conspiracy charges. This whole thing is like a landmine going off beneath everybody. That meeting in that apartment in Hollywood blows up in everybody's faces, except for one person.

Gupta. For Gupta, over in West Delhi, this is a discovery of a huge client base. Analog private investigators and lawyers all around the world tasked with finding digital evidence and dirt to help their clients win lawsuits. private investigators willing to pay him to hack evidence. So Gupta starts a company, and he names it Beltrox. And over the decade that follows, Beltrox becomes the public face of a giant hacking for hire operation,

employed by clients ranging from little civil suits to allegedly massive corporations, looking for that one piece of dirt that would help them win their case. and all those trials at the start of the show WeWork, Wirecard, Nigerian oil, and hundreds of others They all had one thing in common Bell trucks Here on hacked Like on the face

And I also love that the hacker Is the person who escapes probably least scathed Like I'm sure he was scathed to some degree But like You know Being in a foreign country Not being like that's That is

I don't I don't know. It seems, I can see the, like, we, this almost rings, this almost brings memories back for me with the, uh, the police that we're like, you know, setting up the, uh, revolutionaries. It's kind of got the opposite vibe. 100%. It's kind of a sister episode to that. Yeah. Yeah, exactly.

It's like, no, no, we're just a bunch of black hats that are like, it's like we know our competition is doing illegal things. We just need proof of it. So we're going to do an illegal thing to get the proof. of it. Completely. And like you said, it's inadmissible in court, but it's still very useful in the context of a trial. Sure. And if you drop it in a board room in front of a CEO or a board, like a chairperson of a board, I'm sure it's like, oh, wow, okay. Yeah. Where did you get this? Like, we don't have to disclose it, but we know you guys are doing bad things. Wild. Wild. So this story, the Belltruck story, has been kind of floating around for a little bit now.

there's been some really good stuff on it. But the reason we're talking about it now is because of this new data leak that just came out that sheds a lot of light into how it actually worked. Last month, Reuters managed to get a hold of this database of 80,000 emails sent the 13,000 targets over seven-year period. Basically, everyone Beltrocks contacted and attempted to hack between 2013 and 2020. Beltrachs was like primarily a fishing operation, so a database of all of their emails is essentially a day-by-day hour-by-hour breakdown of how this hacking for hire group worked. And really importantly, what we're going to talk about today, which is who they targeted.

The journalists with writers who kind of broke this story, Raphael Satter and Christopher Bing, they got their hands on this database when some people who worked at the email providers that Beltrox was using, agreed to disclose it to the press. And they did so after Reuters reached out to them and said, hey, we're the press. You know this is a giant illegal hacking ring using your service, right? And that leak gives us a really interesting look into this whole ecosystem of lawyers and private investigators and hackers working together to acquire evidence. Because the thing about hacking people in lawsuits is that like if you're willing to cross

that line and hack them, you're probably willing to cross a line. a bunch of lines, including hacking their lawyers, their friends, their families, their whole community. Totally. Before we get to all that. Summit Gupta gets into the world of hacking for hire when he gets a job at this little company called Appen in India. Appen mostly did like mainstream IT work, but there's this interesting PowerPoint presentation

from 2010 that shows like the moment they start to expand their ambitions. It's Appin's pitch to government and corporate clients on their new service they're offering. a division of hackers for hire. They didn't see private investigators as the ultimate clientele, but they did see how profitable hacking could be. It seems that Appen was a little bit of an incubator for this kind of thing. Gupta sees this presentation, presumably. He sees how much potential there is in this,

how much they're charging versus how much he's making, and he decides to embark on his own, to start his own company. And while we don't know how, he gets his first client, Moser, the private investigator working for that multi-level marketing diet shake company. In 2014, a couple weeks after he starts hacking for them, Sumit Gupta, 24 years old, registers his company in India. Beltrox Infotech services Private Limited, their motto, you desire, we do. So, first off, Gupta starts putting up ads online. for an ethical hacking service company listing their target clients as private investigators and corporate lawyers. He knows who he's going after. And people who worked at Beltrox later described

the office as kind of this weird, it was very heavily surveyed, but otherwise just sort of a rundown call center. Like there were surveillance cameras and key tracking software, but otherwise just kind of a dingy place. My guess is that Gupta spun up his own operation because he saw how much they were charging and how little he was making, and I'm inferring how much he was making by how much he paid folks. For context, Bell trucks would charge about 20,000 U.S. for their services. Yeah. A month's salary for his employees was 25,000 rupees, which is about 350 bucks. Wow. Which is 700 rupees less than the average in deli. So he was making a ton of money and he was paying folks not a ton of money. So wait, he was paying under like the average salary getting like qualified black hats that doesn't seem

right i think when you can kind of get a little bit of a look into the tactics they were using which was this like super high volume fishing strategy of course each campaign would be like oh we're going to go after so many people i kind of get how he was able to keep this operation going using that business model sure he didn't it wasn't highly you know tactical strategic hacks it was like blanket fishing scams. For sure. This isn't one linear story. It's kind of like three stories from that archive of Beltrox leaks, three different targets. Each kind of showing us a different way that a hacker could wedge themselves into the legal system and fit into this whole world of like hacking dirt for hire. Story number one, Nigerian oil. Okay, so we got to be careful telling

some of these because they're court cases and those star lawyers. Um, And just because we know every single person who Beltrachs hacked, how they hacked them, we importantly don't know their clients. The business side of things was not in this database. So it makes talking about them kind of tricky. So here is just like a fun story about a $1.5 billion Nigerian oil lawsuit. Folks can do with it what they will. Avoiding litigation.

Avoiding. Here is me wrapping this in conditionals as to limit, My liability. Many asterisks everywhere. If you can't see the quotes I'm putting around what I'm saying, trust me they are there. The next 30 minutes are all sarcasm or like performance art or something. It's 2017 and there's a legal battle unfolding between the Nigerian government

and the heir of an Italian business mogul over the fate of a billion and a half dollars. This business mogul from the 1980s was named Vittorio Fabri. Back in the 80s, he bought the rights to pump crude oil in a block of the Niger Delta. And eventually, I think in the 90s, there was like a power struggle that had him boxed out in favor of local management. This company called Pan Ocean. Fabri Sr. dies, and his heirs sue the Nigerian government for over a billion bucks, saying, like, you took my daddy's oil. The heirs are arguing that the Nigerian government and Pan Ocean were collusion. including to box them out.

And their case hinges on proving this conspiracy. On June 11th, a mysterious email shows up in the Ayers' inbox, a correspondence between Pan Ocean and the Nigerian government's lawyers saying, hey, don't forget to pay us that money you owe us. A very incriminating email and kind of a silver bullet for the Italian Oil Ares case, which hinged on proving that Pan Ocean paid off the Nigerian government. The trouble is, that email, which came from an email belonging to a lawyer working for the Nigerian government, the lawyer is the purported whistleblower, it was not his real email. It was in his name, but it was not an account he had ever used before.

Interesting. It seems that someone hacked his account, found this incriminating email, created a fake email under his name, and used it to send it to the Italian oil heirs, who for what it's worth, claimed to know nothing about the matter. It's interesting that you called this as being kind of a problematic scheme earlier. Because the Fabrio family ultimately lost their case. But Nigerian lawyers have argued that the suggestion of collusion, this accusation that was in that leaked email, probably led to the Nigerian courts letting them skip out on about $3 million in legal fees that they otherwise would have owed to Nigerian government. So for a while, this is all just sort of a weird incriminating but opaque. mystery. It's all but clear that someone hacked the Nigerian government's lawyers, and it was in an attempt at helping the plaintiff. But we didn't know who. Sure. Now, thanks to this Beltrak's document

leak, we can see the other side of all this. We can really see the scope of the operation, and that the lawyer targeted and fished was far from the only one. In the Beltrak's leaks, we see there were multiple different attempts made to target the lawyers, but they also targeted over 100 employees of Pan Ocean and a dozen other lawyers for the Nigerian government. Then it shows that Beltrox created a WikiLeaks style website called Nigeriaoilikes.com. It was sort of set up to expose corrupt Nigerian politicians. And it starts to seem like Gupta's hacking for hire service was growing and becoming part of like an even larger service offering.

It expanded into like advertising almost. Sure. Like a lobbyist. You take this information and broadcast it. Completely. We hacked everybody in this ecosystem. We managed to get one. We leak the data and then we use it to justify this sort of like, of course. Yeah, lobbying effort. So keen-eared listeners will notice that the people who had hired the hackers are right now zero for two. They didn't work in the first story and it didn't work in that story. bringing us to our next story, a little company called WeWork.

Yeah, of course. This is a short one, but it's got a little bit of Star Power. How much do you know about WeWork and its founder, Adam Newman? It was in the news for quite a substantial amount of time, especially the investor news. I'm not going to dig into him too much.

There's a very good podcast series about it, which was adapted into a TV show starring Jared Leto. But Adam Newman, as most folks know, founded the Co-Working Space WeWork, it all goes very, very messily. There's a lot of lawsuits. But there's this part of that story as Adam Newman is trying to court

Japan's soft bank for a $4.5 billion investment. When he, a bunch of the shows about this almost characterize him as like descending into paranoia a little bit. Like he became convinced that he was being monitored during all this. And this is not to vindicate Adam Newman.

But when journalists discovered the Beltrox email leaks and they started looking through everyone who had been targeted, they found that he had. Someone had paid Beltrocks a lot of money to hack Adam Newman. Newman, it seems, had figured this out in about 2020 and the partnership with SoftBank had collapsed by that point and he was suing them after being fired and kicked out of WeWork. His lawyers turn around to book a meeting with SoftBank executives and they grill them about it in these depositions. For what it is worth, that grilling, that accusation that he'd been hacked, happened just a

week or two before Adam Newman received a roughly $500 million settlement from SoftBank. Whoever hacked Adam Newman never found the evidence they were looking for, and Adam accuses SoftBank of hacking him, or at least strongly implies it, and walks away with a half a billion bucks. Which I find fascinating because, again, right now, the combo. common denominator in all these stories is that the people who would have benefited from the hacking have not really won in any of these situations right now the common denominator is how terribly all these things blow up in everyone's faces well the the the I'm having a hard time

not seeing the parallels to last episode where you know somebody gets so much access to private information totally waste it and here you've got people spend piles of money to get access to confidential information, you know, to end, you know, it's not to waste it, but then it's kind of going sideways for them. Yeah. It's like this hilarious game of like, these people knew what the value was,

but have failed to like, you know, harvest the value or the other person didn't know what the value was and failed to do anything really of use with it. Yeah. It kind of just reminds you that these folks think they're probably getting a very high level service because they're paying a very high level amount of money to get it. And they don't know that on the far side of it there's kind of a boiler room happening. Story number three. And this one doesn't go any better. Wirecard. This concerns

a private investigator and former policeman named Avira Mazari, one of Beltrox's best customers. And one of the few people to actually go down in this whole mess, aside from that opening story. There was this now defunct German financial firm called Wirecard. They started processing payments for gambling and porno sites before, you know, sort of rebranding themselves and becoming like a FinTech darling in Germany. Wirecard boss, Marcus Braun, gets arrested when 1.9 billion euros goes missing. And I don't know many companies that could withstand losing 1.9 billion anything. Wirecard is no exception. It collapses. When journalists started digging into the Belltrak's emails, they found out of the news.

that Belltrak's had been hired to target short sellers that were short selling wirecard. Hmm. Reporters that had been writing negative stories about wirecard and financial analysts who had voiced skepticism over wirecard's business practices. In a bunch of different instances, all of these hacks lined up pretty much perfectly with legal threats made by a wire card while Braun was still CEO. And the courts found a similar pattern, which is why Azari was arrested by the FBI in 2019, and why Braun is currently facing a laundry list of legal charges relating to conspiracy, fraud, and hacking. So the really wild thing about all these different stories, Nigerian oil, we work wirecard,

is that these were discovered in Beltrox's like corporate emails. These were contracts that came in through Belltrocks, a company with a website, public facing registered corp. We don't know who paid Belltrox, but we know that Sumit Gupta's company did these jobs based on this 2022 leak. But in 2017, this other group bumped into Belltrocks coming kind of from like a different angle. If Belltrox was public facing, they discovered Beltracks's tracks sort of coming up from below.

And they didn't know they were initially looking at Belltrocks. They were looking for the people behind a hacking for hire group that had gone beyond lawsuits doing corporate espionage and spying on activist groups. Citizens Lab in Toronto nicknamed this group Dark Basin. And what they soon discovered was that this mercenary group had very strong ties to a public facing company. Based in West Delhi named Beltrocks. That whole side of the story right after the break. Think about the last time you heard a breach story on this show.

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we always joke that the retirement goal was just to like be able to read an administrator's email at like a mergers and acquisitions firm in like Wall Street. You know, you're pretty soft touch there. Just read some email, get a bit of information. information, know something that's going to happen, a little insider trading, and bam, you're rich. And it's like, you know, so the value of just a little bit of non-public information can go a long way if you used correctly. Yeah, a secret is worth a lot more money than, it's like any, anytime I see a person who's made their living telling you what's going to happen next, I'm like,

oh, no, if you really knew what was going to happen next, you wouldn't be telling me. Like, that's the essential tension of those people is like, no, if you really knew, why would you tell me? Because it stops being a secret. I'm a futurist. It's like, well, but if you, like, I don't think you are. I mean, I'm probably insulting. I'm probably insulting some fraction of our audience. But yeah, exactly.

If you knew exactly what was going to happen, there's much better ways to make money than charging people to tell them what's going to happen. 100%. So there's this environmental campaign called Exxon New. A network of different environmental orgs have been publicly battling with ExxonMobil for years about whether or not the company had been engaging in this decades-long effort to mislead the public about climate science. ExxonMobil has of course denied this. But about five years ago, several of these environmental groups, Rockefeller Fund, 350, Center for International Environmental Law, started to notice that their staff and membership had been getting really weird emails.

fake Google news articles and links to climate-related content specifically to do with Exxon. And these emails came from accounts that seemed to belong to their colleagues and their lawyers. Citizens Lab, a cybersecurity watched our group at the University of Toronto, started to kind of dig into this a little bit. And what they figured out kind of turned on the URL shorteners that were used to make those fake news stories. The shortened URLs were not created with a little bit. publicly available URL shortener. It was a custom tool. Importantly, it created URLs with short codes that were sequential. Like if you made one that was something something one, two, three, the next one would be something, something, something, something one, two four, and the next one you made

with the tool would be something, something, something one, two five, so on and so on. So Citizens Lab was able to start testing them in numerical order. Timelining them. Timelining them and seeing how many of them there really were. And what they found was It was vast. The people behind these Exxon Newhacks had overall created 28,000 unique URLs using this tool they'd made. And the same way that Reuters got a glimpse into Beltrox's activity through this email leak that happened this last month, a couple years ago, Citizens Lab got there through this giant URL

database that they were able to reverse engineer. The database revealed that amongst the hundreds of people this hacking operation had been targeting, the attacks on Exxon, new campaigners, was not a one-off project. It extended not just to people at the dozen or so orgs running it, not just to their volunteers, like people that just volunteered for one of those groups. In many cases, it extended to their friends, their family, their legal representation. In one case, a child of one of the organizers, a minor was targeted. Ginormous, incredibly well-funded hacking campaign.

Citizens Lab named this hacking campaign Dark Basin. It targeted activists, media, also people with financially sensitive information, bankers, traders. Anyone who, like the Beltrox files, could cost or with the potential to make someone somewhere money. Anybody with a secret. Exxon, of course, denies any connection to this. But those URLs, that list of 28,000. When Citizens Labs set out to figure out who was behind Dark Basin, kind of coming up from below, they started with that repository of URLs.

The vast majority of them were used in fishing scams. And they kind of revealed this network of tools. Some would point to credential fishing sites that looked like a fake login page for Facebook, phishing emails, all the standards. But early on, when folks were first making and tightening up this URL shortening tool, they were using test documents in place of the bait content they would later use. someone was just making sure that it was working using a PDF or a doc before using the URL shortener on their hacks.

The test documents were in many cases personal documents that the people had sitting around in a folder. And in a lot of cases, they were CVs and resumes from the folks using them. I don't know what it is, but even and I can just say this myself, is that when I have to like upload something to test something, I all for some reason I use my CV. And like I haven't updated it in like 10 years, but it's like,

I feel like that's, I wonder if there's something programmed in us. It's like, oh, I need a PDF. What PDFs exist on my computer? It's like, okay, bank statements and like my CV. So you use your CV because it's the least.

It's somehow more private than your bank statements. It still has your name and employer on it. it doesn't have your bank account info. Exactly. So it's like, I just wanted, I just knew it. Before you even said it, I was like, guaranteed its resumes. Guaranteed its resumes. And you're like, yeah, test documents, resumes. And I was like, oh, man.

You're like, it's resume. I was like, I would have been this person. This would have been me. Like, I got to test this. Make sure it accepts PDF. Oh yeah, resume. Yeah. Yeah.

And you're not, you're not thinking, you might not even have been the exact person of the company to develop it to know that the URLs are sequential. There's enough information loss that you don't think the test document is ever going to get seen by someone. But whoops, it did. Yeah. And every single one of them all shared one thing, all pointing to one company, Belltrocks. The Dark Basin Hacking Group that Citizens Lab had been investigating and the public facing quote-unquote ethical hacking company that Reuters would later look into, were one and the same.

And bizarrely, tragically, despite the volume of both of these leaks, despite how much we can see into how they operated this giant fishing network, we still can't see who hired them. Even with all of this information, that is the last missing piece of the puzzle. Nobody's managed to fish and get access to their email. Sure would be cool. Someone did. Or some three-letter agency shows up and takes the mail servers. Let's talk about why that specifically might not happen.

By talking about some of the people who have endorsed Beltrocks over the years, prior to it blowing up and becoming this toxic brand name. Amongst its endorsers prior to that point, an official in the Canadian government endorsed them, an investigator at the U.S. Federal Trade Commission did, a contract investigator for the U.S. Customs and Border Patrol, current local and state law enforcement officers in the U.S. And as we discussed, a laundry list of private investigators,

many with prior roles in the FBI, police, military, and branches of government. All prior to Belltrak's being revealed as a not-so-ethical hacking service said, you should use this ethical hacking service. We're recommending? Wow. Yeah. It's not a great look. Good for Beltracks.

Totally. Quite the logo farm. Yeah, no kidding. It's like we take money from anybody. It doesn't really matter. Yeah. No. What do you want us to do?

Yeah. We're mercenaries. They don't give a shit if you win. Like, but they'll take your money to hack someone. It's actually, we're providing evidence to both sides of this case. You know, it doesn't matter. Totally. Totally.

Vasilis, the company that Gupta worked for in 2013, is currently challenging a better part of a billion-dollar class action. judgment for robocalls. It's CEO Ryan, who hired Carlos, left the firm in 2016. That former bodyguard, director of security, Carlos, now runs a fitness retreat in the mountains of Japan. Wow. And Nathan Mosier, the private eye, is working on his mental health at a Utah rehabilitation facility.

Wish him the best. But what I find fascinating, and some of this is just the sample list of companies that, you know, got discovered engaging in this. but is again, like we said, how many of these stories do not work out for the people who would have presumably hired Beltrocks? And it's kind of like if you reach the point where you're desperate enough to hire these folks to cross that line, to break those laws, it was probably going pretty poorly for you. And you're still probably not likely to win. By the time you get to Beltrocks, you're looking at a Hail Mary. But the thing about that is that somewhat.

Gupta still gets paid whether or not you win. Gupta was indicted in 2015 for that case from our opening story. He remains a fugitive from the U.S. courts. He is very free living his life in India. Social media sites have attempted to cut off Beltrox's sort of like damage. Last year, Facebook meta removed 400 associated pages that they had created over the years as part of their lobbying efforts, as you called it. Beltrach's website is now shut down.

That brand has died. I see on Google that they are temporarily closed. Not out of business. Temporarily closed. Any day now. They'll be back. They're going to stage a revival. They'll be back and just check out their logo farm then.

You know, you think about the stealing of information and access to information. 50 years ago, you know, in a pre-digital world. This was all in folders and, you know, admissions and in lawyers offices and accounting records and books, you know. And now it's all digital. Everything's digital. We leave digital fingerprints everywhere. The 21st century, you know, private eye is likely just a hacker. I would bet that somewhere there's probably a new website that is not closed for business for a different company offering quote unquote ethical.

hacking services with a client roster of private investigators and lawyers and a slogan to something to the effect of you desire we do whether or not you win not their problem thanks for listening everybody a fun little easter egg for everyone who made it to the end could you hear me becoming increasingly heat delirious over the course of recording this thing as it goes on this like a in how many sentences I just completely say out of order or say the wrong thing. I had the AC off for the microphone and the windows and doors to my little room all tightly snugly sealed. And I'm pretty sure if this went on for more than 10 minutes longer, I would have passed

out into the microphone. Stay cool, everybody. Stay cool out there, especially our patrons on Patreon. That's patreon.com slash hacked podcast. way to support the show. Trevor Strom, thank you very much for being a patron. Brian Schultz, thank you. Thank you very much. Colin Small, thank you. Paul Gangler. Thank you from the bottom of my heart. Tommy Hovey. Thank you so much. And Mark Northgraves, thank you. Thank you for support. It means a lot. Patreon.com slash act podcast. Best way to support the show. That is another one, so odd one,

a heat boiling like a crawfish episode. Another one in the bucket. We'll catch you again next time. Thanks for listening.