Dominica’s Financial Institutions Under Attack by Cybercrime
The Caribbean has been hit by a major blow as authorities in the Dominican Republic have dismantled a transnational cybercrime network believed to have defrauded hundreds of US citizens out of more than $200 million.
Operation Discovery: A Major Crackdown on Cybercrime
On March 2, law enforcement officials conducted a series of raids at call centers in Santiago, Santo Domingo, La Vega, and Puerto Plata, seizing over $400,000 in cash, luxury vehicles, electronic equipment, and firearms. The FBI also carried out simultaneous raids in New York City, although details of those operations have not been released.
The criminal network used various identity theft schemes to extract money from victims, including:
- Fake calls demanding extortion payments
- Targeted attacks on individuals with prescriptions for controlled drugs
To launder their proceeds, the network allegedly used:
- Cryptocurrencies
- Remittance companies
- Fraudulent money transfers
- Moving around $250 million in total
The Growing Threat of Cybercrime in the Caribbean
This latest operation highlights the growing threat of financial crime operations in the Caribbean and the need for continued crackdowns on organized crime in the region. Cybercrime has increased significantly since the start of the COVID-19 pandemic, with sexual extortion also skyrocketing during this period.
The Dominican Republic has established laws and regulations aimed at fighting cybercrime, including:
- A special prosecutor’s office focused on combating card cloning, phishing scams, and other electronic crimes
- President Abinader has prioritized the fight against corruption and organized crime since taking power in August 2020
- The country joined over 30 countries in signing an initiative against ransomware and data hijacking last year
Cybercrime Across the Caribbean: A Growing Trend
Across the Caribbean, there is a growing trend of cybercrime, with numerous Ponzi and pyramid schemes reported in:
- Guyana
- Trinidad and Tobago
- Barbados
- Antigua and Barbuda
- Other nations
Some countries have passed legislation to combat these schemes, while others are working to identify and report financial and cybercrimes.
A Significant Step Forward in the Fight Against Financial Crime Operations
Cybercrime has been identified as the third-largest security concern in the Caribbean Community (Caricom), behind trafficking and human smuggling. The recent dismantling of this cybercrime network is a significant step forward in the fight against financial crime operations in the region.