Zak Coyne has been jailed for eight-and-a-half years.
A computer expert who put his talents to criminal use helped to create a ‘one-stop shop’ to allow cyber fraudsters to dupe innocent victims out of £100m!
Zak Coyne, 24, was the co-creator of LabHost, a site which charged criminals a subscription fee to allow them to create realistic looking copies of websites for well-known brands such as Amazon & Netflix, as well as 26 UK banks.
Massive Scale
Customers would unwittingly have their confidential data stolen, believing they were accessing legitimate accounts on banking, commercial or govt. websites. LabHost allowed criminals to commit fraud on a ‘massive scale,’ prosecutors outlined.
At least 1m people from 91 countries across the world fell victim to the phishing fraud. Confidential details would either be used for fraud or sold on to other criminals.
The actual monetary loss to victims in the UK was £100m, Minshull Street Crown Court in Manchester heard.
Sophisticated
Sentencing, Judge Jenny Lester-Ashworth stated: “It was one of the most professional & sophisticated websites in the world for committing online fraud.” She told Coyne: “You also enjoyed what you were doing & also by being immersed in the criminal underworld operating online.”
Coyne was arrested in the departures area at Manchester Airport in April 2024. The dad-of-one from Huddersfield has now been jailed for eight-&-a-half years.
Speaking of the victims, Judge Jenny Lester-Ashworth stated: “They have lost faith in their ability to stay safe online. They are paranoid & you have left them feeling vulnerable.”
Unidentified Canadian
Prosecutors told how LabHost was created by Coyne & an unidentified Canadian in 2021. It operated worldwide, offering criminals a selection of phishing pages which they could use to defraud victims. The site was advertised as a ‘one-stop shop for phishing.’
Prosecuting, Simon Gurney explained Coyne was ‘integral’ to the site, acting as its main UK administrator & being in charge of the ‘world membership support account.’ As well as offering the phishing sites, LabHost offered ongoing support to criminals including through video tutorials.
Cryptocurrency
He received about £200,000 from his role in the site, which he had received in cryptocurrency but was able to transfer into cash with the help of a 3rd party. When Coyne stopped being involved in the site, it was unable to function & remained offline for 2 months. Meanwhile he set up a new competitor phishing site to fill the gap left by LabHost’s absence.
Mr Gurney observed: “Whilst it is impossible to establish a precise figure for the loss caused by the defendant’s provision & promotion of the LabHost platform, the court can conclude with confidence that the actual losses exceed £100m.
Billions
“It is likely that the losses caused were substantially greater. The risk of loss occasioned by the frauds committed through LabHost can be measured in multiple billions of pounds.”
Figures suggested there had been a potential loss of up to £523m in Canada, of £125m in Ireland & £64m in Australia, the court was told. Mr Gurney stated aggregating the average potential losses across the world would give a global figure of £12bn.
Data revealed that LabHost had stolen 429,114 credit card numbers, 887,609 unique passwords & 62,532 unique mother’s maiden names. Before the police shut it down in April last year, LabHost had almost 13,000 subscribers.
Huge Investigation
The takedown of LabHost followed a huge investigation & collaboration between EuroPol, the Crown Prosecution Service (CPS), The British Metropolitan Police & international law enforcement in Canada, the US, Australia & countries across Europe, among others.
Defending, Adam Roxborough explained that Coyne was on the autism spectrum & that his mental health had ‘fed into’ the offending.
“It became something of an obsession for him,” the barrister suggested.
He told how Coyne had been recruited by the Canadian individual after he became aware of his computing abilities when he was a teenager.
Gambling Website
They had previously tried to set up a legitimate gambling website, but Coyne later became embroiled in the fraudulent scheme.
“He actually did not give any real thought to the overall scale of what he was enabling,” Mr Roxborough added.
After the hearing, Thomas Short, Specialist Prosecutor for the Crown Prosecution Service, observed: “Zak Coyne operated a phishing service that provided fraudsters with the tools to impersonate trusted institutions & steal sensitive information from unsuspecting victims.
Worldwide Criminal Enterprise
“This was a sophisticated worldwide criminal enterprise which enabled others to perpetrate fraud on a massive scale, resulting in losses totalling more than £100m.
Fraud is far from a victimless crime & the harm caused by Coyne’s offending are measured not just in monetary terms, but also in the distress inflicted on countless victims who fell prey to these frauds.
“This was a complex case, but the prosecution team, together with law enforcement partners, was able to unravel an intricate web of digital evidence which linked Coyne to the offending & build a compelling case against him, resulting in his guilty pleas.
The CPS will be pursuing confiscation proceedings against the defendant to recover his ill-gotten gains & prevent him from financially benefitting from his criminality.”
Mastermind
Commander Stephen Clayman from the Met stated: “The outcome of this case demonstrates the unwavering commitment of the Met in pursuing individuals like Coyne who mastermind a network of fraudulent activity, which ultimately brings misery to 1000s of innocent people.
“This also demonstrates the commitment across law enforcement to identify & hold those to account who facilitate criminal enabling functions & think they can remain undetected. We will find you & take action.”
Dismantling
Edvardas Šileris, Head of Europol’s European Cybercrime Centre commented: “The dismantling of LabHost is a clear example of the impact that cross-border co-operation has on combatting cybercrime.”
Coyne, of Woodbine Road, Huddersfield, admitted 2 offences of fraud & 1 of transferring criminal property.
