Fraudsters worldwide apply for money from the US government using stolen and forged identities, making off with hundreds of billions of dollars annually.

darkreading – ​Read More

In what experts are calling a novel legal outcome, the 22-year-old former administrator of the cybercrime community Breachforums will forfeit nearly $700,000 to settle a civil lawsuit from a health insurance company whose customer data was posted for sale on the forum in 2023. Conor Brian Fitzpatrick, a.k.a. “Pompompurin,” is slated for resentencing next month after pleading guilty to access device fraud and possession of child sexual abuse material (CSAM).

On January 18, 2023, denizens of Breachforums posted for sale tens of thousands of records — including Social Security numbers, dates of birth, addresses, and phone numbers  — stolen from Nonstop Health, an insurance provider based in Concord, Calif.

Class-action attorneys sued Nonstop Health, which added Fitzpatrick as a third-party defendant to the civil litigation in November 2023, several months after he was arrested by the FBI and criminally charged with access device fraud and CSAM possession. In January 2025, Nonstop agreed to pay $1.5 million to settle the class action.

Jill Fertel is a former federal prosecutor who runs the cyber litigation practice at Cipriani & Warner, the law firm that represented Nonstop Health. Fertel told KrebsOnSecurity this is the first and only case where a cybercriminal or anyone related to the security incident was actually named in civil litigation.

“Civil plaintiffs are not at all likely to see money seized from threat actors involved in the incident to be made available to people impacted by the breach,” Fertel said. “The best we could do was make this money available to the class, but it’s still incumbent on the members of the class who are impacted to make that claim.”

Mark Rasch is a former federal prosecutor who now represents Unit 221B, a cybersecurity firm based in New York City. Rasch said he doesn’t doubt that the civil settlement involving Fitzpatrick’s criminal activity is a novel legal development.

“It is rare in these civil cases that you know the threat actor involved in the breach, and it’s also rare that you catch them with sufficient resources to be able to pay a claim,” Rasch said.

Despite admitting to possessing more than 600 CSAM images and personally operating Breachforums, Fitzpatrick was sentenced in January 2024 to time served and 20 years of supervised release. Federal prosecutors objected, arguing that his punishment failed to adequately reflect the seriousness of his crimes or serve as a deterrent.

Indeed, the same month he was sentenced Fitzpatrick was rearrested (PDF) for violating the terms of his release, which forbade him from using a computer that didn’t have court-required monitoring software installed.

Federal prosecutors said Fitzpatrick went on Discord following his guilty plea and professed innocence to the very crimes to which he’d pleaded guilty, stating that his plea deal was “so BS” and that he had “wanted to fight it.” The feds said Fitzpatrick also joked with his friends about selling data to foreign governments, exhorting one user to “become a foreign asset to china or russia,” and to “sell government secrets.”

In January 2025, a federal appeals court agreed with the government’s assessment, vacating Fitzpatrick’s sentence and ordering him to be resentenced on June 3, 2025.

Fitzpatrick launched BreachForums in March 2022 to replace RaidForums, a similarly popular crime forum that was infiltrated and shut down by the FBI the previous month. As administrator, his alter ego Pompompurin served as the middleman, personally reviewing all databases for sale on the forum and offering an escrow service to those interested in buying stolen data.

The new site quickly attracted more than 300,000 users, and facilitated the sale of databases stolen from hundreds of hacking victims, including some of the largest consumer data breaches in recent history. In May 2024, a reincarnation of Breachforums was seized by the FBI and international partners. Still more relaunches of the forum occurred after that, with the most recent disruption last month.

As KrebsOnSecurity reported last year in The Dark Nexus Between Harm Groups and The Com, it is increasingly common for federal investigators to find CSAM material when searching devices seized from cybercriminal suspects. While the mere possession of CSAM is a serious federal crime, not all of those caught with CSAM are necessarily creators or distributors of it. Fertel said some cybercriminal communities have been known to require new entrants to share CSAM material as a way of proving that they are not a federal investigator.

“If you’re going to the darkest corners of Internet, that’s how you prove you’re not law enforcement,” Fertel said. “Law enforcement would never share that material. It would be criminal for me as a prosecutor, if I obtained and possessed those types of images.”

Further reading: The settlement between Fitzpatrick and Nonstop (PDF).

Krebs on Security – ​Read More