Key Points:
– Vyacheslav Igorevich Penchukov admitted to involvement in malware schemes.
– Pleaded guilty to breaking U.S. anti-racketeering law and wire fraud.
– Cyberattack caused significant financial losses and disrupted vital medical services.
– Penchukov was a fugitive on the FBI’s cyber most-wanted list.
Details:
A Ukrainian man, Vyacheslav Igorevich Penchukov, has pleaded guilty to his role in two separate malware schemes, one of which led to a cyberattack at the University of Vermont Medical Center in 2020. The attack resulted in the temporary shutdown of crucial services at the medical center, costing tens of millions of dollars, according to the U.S. Department of Justice.
Penchukov, also known as Vyacheslav Igoravich Andreev, confessed in federal court in Nebraska to conspiracy charges related to anti-racketeering law and wire fraud. Federal prosecutors accused him of leading a racketeering enterprise and infecting thousands of business computers with malicious software over several years.
The cybercriminal activities continued through to 2021, with Penchukov’s involvement in infecting computers with new malware. This allowed for the deployment of ransomware, compromising the University of Vermont Medical Center’s systems in October 2020. The attack severely impacted the medical center’s ability to provide critical patient services for over two weeks, posing a risk of harm to patients.
The financial repercussions of the cyberattack were significant, with the hospital estimating losses of around $50 million, primarily in lost revenue. The Department of Justice cited losses at $30 million. Penchukov and his associates also engaged in fraudulent activities to access online banking accounts, resulting in millions of dollars in losses.
Prior to his arrest in Switzerland in 2022 and subsequent extradition to the United States, Penchukov was a wanted fugitive on the FBI’s cyber most-wanted list. He faces a maximum sentence of up to 20 years in prison on each count. Penchukov is scheduled to be sentenced on May 9.