Two individuals charged by federal authorities for defrauding Uber drivers, riders, and company through an app named ‘Screwber’

Two men have been arrested and charged with defrauding Uber in a scheme using an app called “Screwber.” Eliahou Paldiel and Carlos Arturo Suarez Palacios were accused of orchestrating a long-running scam that involved selling hacked smartphones to Uber drivers with the Screwber app installed. This app allowed drivers to see a customer’s destination and fare before accepting a ride, enabling them to choose only the most lucrative fares. The men also used the “Fake GPS” app to manipulate their location and take advantage of surge pricing.
The fraudulent scheme allegedly resulted in $40 million in illicit profits over six years. The defendants now face charges of wire fraud and money laundering, with the possibility of 40 years in prison if convicted. Uber confirmed that it was the victim company in question and emphasized the impact of the fraud on drivers and passengers.
The scheme also contributed to a decrease in Uber’s utilization rate, leading to driver lockouts and reduced earnings for legitimate drivers. The city has taken steps to address the issue, including an agreement with Uber and Lyft to limit lockouts and pause the hiring of new drivers. However, driver groups have criticized the resolution as favorable to the rideshare companies.
Paldiel and Suarez have been released on bond after pleading not guilty to the charges. The case highlights the ongoing challenges faced by the ridesharing industry in combating fraudulent activities and protecting drivers and passengers from exploitation.

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