Dominican Republic Dismantles Massive Cybercrime Network Linked to $200 Million in Fraudulent Transactions

A significant transnational cybercrime network, believed to have defrauded hundreds of US citizens, has been dismantled by authorities in the Dominican Republic. The operation, known as “Operation Discovery,” highlights the growing threat posed by financial crime operations in the Caribbean.

Key Findings and Actions Taken

• Hundreds of law enforcement officials conducted raids on call centers in Santiago, Santo Domingo, La Vega, and Puerto Plata, arresting around 70 people believed to be part of the criminal network.
• Authorities seized over $400,000 in cash, luxury vehicles, electronic equipment, and firearms during the raids.
• US agents from the Federal Bureau of Investigation (FBI) carried out simultaneous raids in New York City, although details about those operations have not been released.

The Cybercrime Network’s Methods

• The network allegedly used various identity theft schemes to extract money from victims, including:
  • Fake caller-ID spoofing services
  • Targeted phishing attacks
  • Individuals posing as members of the FBI, demanding payment from victims to avoid prosecution

Trafficking Illegal Firearms and Laundering Extortion Proceeds

• The network allegedly trafficked illegal firearms with the help of a separate criminal organization called the Trinitarios.
• To launder their extortion proceeds, the network allegedly used:
  • Cryptocurrencies
  • Remittance companies
  • Fraudulent money transfers
  • Estimated $250 million in fraudulent transactions

Implications and Response

• The recent dismantling of the cybercrime network highlights two important points:
  • A continued crackdown on organized crime in the Dominican Republic
  • The rise in fraud schemes based in the Caribbean
• Cybercrime has increased significantly since the start of the COVID-19 pandemic, with the Dominican Republic experiencing a surge in fraudulent transactions and sexual extortion.
• Despite these challenges, the Dominican Republic has established laws and regulations aimed at fighting cybercrime, including:
  • Creation of a special prosecutor’s office focused on combating card cloning, phishing scams, and other forms of online fraud
  • Prioritization of the fight against corruption and organized crime under President Abinader’s administration

The Caribbean Region’s Response to Cybercrime

• The Caribbean region is grappling with a growing problem of cybercrime, with numerous Ponzi and pyramid schemes reported in several countries during the pandemic.
• Some nations have responded by passing legislation to combat these schemes, while others are actively identifying and reporting financial and cybercrimes.
• Cybercrime was listed as the third-largest security concern at a recent meeting of Caribbean Community (Caricom) security ministers.