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Uber Drivers Arrested for Screwber Scam – Were You One of the Victims?


Uber Drivers Arrested for Screwber Scam - Were You One of the Victims compensation sue attorney lawyer

New York federal prosecutors recently charged two Uber drivers with operating a scheme to defraud Uber, its customers, and drivers by charging false “surge charges.” The scheme involved using an app called “Screwber,” which was pre-installed on cell phones that were sold by Eliahou Paldiel and Arturo Suarez Palacios. The suspects were arraigned in Brooklyn Federal Court on August 28 for money laundering and wire fraud, and face a jail sentence of 40 years.

Paldiel and Suarez are alleged to have sold phones installed with Screwber to 800 Uber drivers. This allowed drivers to find out a customer’s destination and fare before accepting the ride, thereby allowing them to accept only the most expensive fares. The criminal duo charged $600 per phone, plus a monthly subscription fee of $300.

Drivers that participated in the scam also had access to Fake GPS, an app that allows you to spoof your location, so it looked like you are in specific locations that were experiencing surge pricing. By using Screwber, these drivers had an advantage over others when it came to scoring rides in these locations. Fake GPS also makes it appear that a driver is an airport ride-hail queue before their actual arrival, thus enabling them to skip the virtual line.

The usage of these illegal apps went undetected because the phones sold by the pair used an obsolete version of the Uber app. According to the feds, Paldiel and Suarez made around $40 million from the Screwber scheme in over 6 years, starting from 2018.

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How Uber Failed Its Customers and Drivers

For now, there is much more we need to know before we can say for sure how Uber was involved in this scheme to defraud customers and rideshare drivers. What we can say for sure is that companies like Uber have a “too little too late” approach when it comes to security breaches. By the time a major corporation comes under investigation, you often find that there were red flags indicating the need to step up security measures. But the focus is on how to maximize profits, and spending money on areas like improved cybersecurity is not something most of these entities are interested in.

Our law firm is conducting an investigation into these incidents, but it goes without saying that this massive, long-running scam was perpetrated by an app that was well known to hackers and not particularly difficult to obtain. Did Uber truly have no idea that such an app existed, or that similar apps were available from the dark web and other illicit sources? In many cases, companies are warned about these threats by internet security firms or experts in the field, but they fail to take any action to address the situation.

In addition, it’s astonishing that such a scheme took place for six years, right under Uber’s nose. It’s hard to believe that Uber has on liability for these events, and this is the basis of lawsuit by defrauded rideshare passengers and drivers.

Class Action Lawsuit against Uber

As a passenger that was erroneously charged surge charge fees due to a driver using the Screwber app, you have the right to join a class action with other consumers. Alternatively, you may be a driver who lost work opportunities and income because you chose to play by the rules while others scammed the system. You too, can explore the option of filing a class action claim with drivers who are in the same situation.

Because class action lawsuits are complex and overwhelming legal actions, it’s best to contact a law firm with experience in consumer fraud class action lawsuits. Our legal team has decades of experience in mass fraud cases involving corporate negligence, which you can take advantage of by calling us today. We look forward to speaking with you and securing the highest possible settlement on your behalf.

What can I Recover from a Lawsuit?

As someone that was cheated out of fake surge fees in the Screwber scheme, you are entitled to the funds that you were cheated out of, but what this means depends on whether you are a driver or passenger. With passengers, the lost compensation is a matter of calculating how much more they paid than in fees because of the fraudulent actions of approximately 800 Uber drivers. However, it’s more complicated to figure the amount you lost as a driver who was doing the right thing, while others made money hand over fist. This is where a skilled rideshare app fraud attorney can be of help, as they are experienced in fraud cases where the losses are not black and white.

Another issue is the possible data breach that may have occurred due to bad actors infiltrating the system. There is a good chance that personally identifying information was obtained by these drivers, since we are, after all, talking about a hacking app. And data breaches are all too common and have devastating consequences for those whose identities are stolen. This is another way that consumers and honest Uber drivers may be affected, and that will impact the monetary damages you are owed from a class action claim.

Please note that the damages that you can receive depend on many details that are specific to your case, so we can only provide you with general information for now. For an accurate answer on the restitution you can receive from a lawsuit against Uber, reach out to us for a free consultation.

Uber Drivers Arrested for Screwber Scam - Were You One of the Victims compensation
How Long Do I have to File a Lawsuit?

As a general rule, the deadline to file a consumer fraud claim in California is 3 years from when the violation occurred. However, there are situations where the statute of limitations is 3 years from when the victim becomes aware of the fraud / violation. The specific act of negligence by Uber, the losses you sustained, and other factors will determine how much time you have to join an Uber fake surge fees class action lawsuit. That’s why we urge you to contact us right away and talk to a consumer fraud and protection lawyer.

Contact a Consumer Fraud Class Action Lawyer

Whether you use Uber or drive for the company, the recent Screwber scam is one of many examples where the people in charge failed in their duty of care. This is a major oversight with ramifications that can hurt countless people for many years, and our law firm is here to hold Uber accountable for their negligence. If you or someone you know was affected by the phony Uber surcharge scam, contact our law firm immediately.

Along with a free, private consultation, you can be represented by an Uber class action lawyer for $0. Here at DTLA, all clients are protected by the Zero Fee Guarantee, meaning that legal fees are collected at the end of your case, and only if we successfully recover your settlement. In the event you don’t receive compensation, you walk away without paying us a single cent.

Our attorneys are ready to assist you, so contact us 24 hours a day, 7 days a week to schedule a free case review.


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