Armenia Fights Back Against Cyber Fraud: Police Arrest Scammers in Piconet Technology LLC Bust

A major cyber fraud ring has been dismantled in Armenia after an undercover investigation exposed a company called Piconet Technology LLC for defrauding over 60 US citizens out of $15,000.

The Scam Operation

Piconet Technology LLC, registered in Armenia in 2005, operates from an office in a neighborhood northeast of the city center. The company is run by Lavish Madaan, an Indian national, and his wife Zhanna Vardanyan, who is Armenian. They employ two young Armenian men, Samvel and Edik, to carry out their operations.

How the Scam Works

The scammers use a Microsoft Pop-up Scam device to target unsuspecting users, often elderly and retired people. They promise to remove viruses from computers and make them safe, defrauding victims of hundreds of dollars in the process. The scammers also obtain users’ personal and financial data.

A Victim’s Story

One victim, Max Baucum, a retired Vietnam War veteran living in Texas, was convinced to pay $450 for a one-year security program after being contacted by an Indian man calling himself Gary Daniels. Daniels claimed to be an online technical representative for Microsoft Windows.

The Investigation

Hetq’s investigation was tipped off by a former Piconet employee who left the company after discovering what they were doing. Reporters from Hetq then went undercover and posed as job hunters to see the operations for themselves. They were supplied with over 100 names and telephone numbers to cold call and inform users that their computers were infected with viruses.

Global Impact of Cybercrime

The global cost of cybercrime has been estimated at as high as $600 billion, or 0.8 percent of the world’s GDP, according to a report released last year by the Center for Strategic and International Studies. In the United States, roughly one in four Americans said they were victims of cybercrime in 2018.

Arrests Made

Hetq informed Armenian law enforcement agencies of their findings, which led to swift arrests on Tuesday. The owners and directors of Piconet have not been spoken with, as doing so could prompt them to hide evidence or flee the country.

Conclusion

The busting of Piconet Technology LLC is a significant victory in the fight against cyber fraud. It serves as a reminder of the importance of staying vigilant and educating ourselves on how to avoid falling victim to these types of scams.