Ukrainian ‘Malvertiser’ Brought to Justice in Newark

NEWARK, N.J. – Oleksii Petrovich Ivanov, 31, a Ukrainian national accused of masterminding a sprawling international malware scheme, appeared in Newark federal court today after being extradited from the Netherlands. Ivanov is facing serious federal charges for a years-long operation that infected computers worldwide through deceptive online advertising – a tactic known as “malvertising.” The takedown is a win for investigators who spent years tracking the digital fingerprints of this cybercriminal.

U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced the arrival and arraignment of Ivanov. He’s been indicted on one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was initially returned on December 3, 2018, but remained sealed until his arrival on U.S. soil on May 2, 2019. Magistrate Judge James B. Clark III ordered Ivanov detained without bail.

“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” Carpenito stated bluntly. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.” The scheme wasn’t about stealing identities directly, but about gaining access – a foothold into countless systems for unknown, potentially far more damaging, purposes.

Benczkowski echoed the sentiment, emphasizing the international scope of the investigation. “Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” he said. “This case and today’s extradition demonstrates that, through international cooperation, we are able to bring cyber thieves to justice in the United States, wherever they may commit their crimes.” The arrest marks a significant step in holding international cybercriminals accountable.

The investigation, spearheaded by the U.S. Secret Service with crucial assistance from Dutch law enforcement, revealed that from October 2013 through May 2018, Ivanov allegedly conspired to defraud millions. He and his co-conspirators launched malicious advertising campaigns disguised as legitimate ads, redirecting users to malware, unwanted advertisements, and compromised systems. Documents reveal these malicious advertisements were viewed or accessed over 100 million times. The operation relied on creating elaborate fake personas and companies to pose as legitimate advertisers.

For example, in June and July 2014, Ivanov allegedly operated under the alias “Dmitrij Zaleskis,” CEO of a fictitious UK firm called “Veldex Limited,” submitting a barrage of malicious ads to a U.S.-based advertising company. These campaigns alone were viewed nearly 17.4 million times in a matter of days. Even after repeated warnings that his ads were flagged as malware threats, Ivanov reportedly denied wrongdoing and persisted for months, switching tactics and identities when exposed. He repeatedly lied and used new fake identities to continue buying advertisements after his ads were flagged as malicious and banned. The case highlights the tenacity and adaptability of these cybercriminals, and the complex, international effort required to bring them to justice.

MORE FEDERAL CRIME NEWS

Cybercrime

Nikhil Nilesh Shah, Damaging Computer Code, New Jersey 2022

Feb 23, 2016

Cybercrime

Wayne Kenney, Computer Hacking, New Hampshire 2021

Nov 18, 2020

Cybercrime

Minh Phuong Vong, IT Scheme Facilitation, Maryland 2024

May 16, 2024

Cybercrime

Rawkwon Reed, Possession of Sexual Abuse Images/Videos of Children under 13, Louisiana 2024

Oct 19, 2020