Brooklyn Feds Say Hackers Scammed Rideshare Users Out Of Millions

BROOKLYN, NY — Brooklyn federal court charged two defendants with wire fraud and money laundering conspiracies for a wide-ranging scheme to hack rideshare apps and exploit riders and companies yesterday.

The court accused the defendants of selling hacked smartphones and fraudulent applications — including one called "Screwber" — to more than 800 drivers since 2018, earning more than $40 million, the FBI said.

The court says these applications allowed drivers to fake their locations to obtain surge fees and get information they shouldn't have had access to, taking money from riders and usurping work from law-abiding drivers.

If convicted, the two defendants, Eliahou Paldiel and Carlos Arturo Suarez Palacios, could spend up to 20 years in prison on each of the two counts.

“As alleged, the defendants sought to enrich themselves by corrupting the rideshare market at the expense of unsuspecting passengers and hardworking drivers who play by the rules,” said United States Attorney Breon Peace. “My Office remains steadfast in ensuring that, no matter how complex the scheme, individuals who violate the law will be caught and held accountable. The defendants learned an important lesson in these charges: there is no such thing as a free ride.”

The two defendants have pleaded 'not guilty' to accusations and were both released on $210,000 bonds, the DA said.