Dominican Republic Cracks Down on Transnational Cybercrime Network, Seizes Over $750 Million in Assets

A Major Blow to Transnational Cybercrime

Authorities in the Dominican Republic have dismantled a criminal network believed to have defrauded hundreds of US citizens of over $200 million. The operation, dubbed “Operation Discovery,” was carried out by hundreds of law enforcement officials who raided call centers and seized a staggering amount of assets.

Schemes and Methods Used by the Criminal Network

The cybercrime ring used various identity theft schemes to extract money from victims. These included:

• Caller-ID Spoofing: Individuals working in call centers used caller-ID spoofing services to fake their identities and demand extortion payments from individuals after threatening to kidnap family members.
• Prescription Drug Scam: Members of the criminal network targeted people who had prescriptions for highly controlled drugs and medications, offering them medicine without a doctor’s prescription.

Arrests and Seized Assets

The operation resulted in:

• The arrest of around 70 people who allegedly worked for the cybercrime ring
• The seizure of:
  • $400,000 in cash
  • Almost $350,000 in Dominican pesos
  • Up to 30 luxury vehicles
  • Hundreds of pieces of electronic equipment
  • A number of firearms

US agents from the Federal Bureau of Investigation (FBI) also carried out simultaneous raids in New York City.

Growing Concerns about Cybercrime in the Caribbean

The dismantling of this cybercrime network highlights the growing threat posed by financial crime operations in the Caribbean. Cybercrime has increased significantly since the start of the COVID-19 pandemic, with authorities reporting a surge in fraud schemes and identity theft.

Efforts to Combat Cybercrime

The Dominican Republic has taken steps to combat cybercrime, including:

• Establishing special prosecutor’s offices
• Laws aimed at fighting card cloning, phishing scams, illegal electronic money transfers, telephone fraud, electronic blackmail, and identity theft

President Abinader has also prioritized the fight against corruption and organized crime since taking office in August 2020.

Regional Efforts to Combat Cybercrime

The Caribbean region is grappling with a growing concern regarding cybercrime, with numerous Ponzi and pyramid schemes reported across several countries. In response, some nations have passed legislation to combat these schemes, while others are working to identify and report financial and cybercrimes.

Caribbean Community (Caricom) security ministers have listed cybercrime as the third-largest security concern, behind the situation in Haiti and human trafficking. The region’s authorities must continue to work together to combat this growing threat and protect its citizens from these types of crimes.