Cybercrime Ring Shuts Down in Dominican Republic: Defrauding US Citizens of Over $200 Million

In a significant law enforcement operation, a transnational cybercrime network was dismantled in the Dominican Republic, allegedly defrauding hundreds of American citizens of over $200 million. This operation, named “Operation Discovery,” was carried out in collaboration between Dominican authorities and the FBI.

Raids and Seizures

On March 2, raids targeted call centers in Santiago, Santo Domingo, La Vega, and Puerto Plata, leading to the arrest of around 70 suspects. During the raids, officials confiscated approximately $440,000, 19.4 million Dominican pesos (about $356,000), 30 luxury vehicles, hundreds of pieces of electronic equipment, and firearms.

Two Separate Schemes

The cybercriminals reportedly exploited two different schemes to defraud victims:

1. Caller-ID Spoofing: The criminals used caller-ID spoofing to extort money from victims, making it appear as if they were calling from a relative’s phone number, threatening kidnapping.
2. Substance Abuse Blackmail: Targeting individuals with prescriptions for controlled substances, cybercriminals offered illegal medication in exchange for their personal and financial information, then used fake FBI identities to demand payments.

Collaboration with the Trinitarios

The Attorney General also accused the criminal network of working with the Trinitarios, an active Dominican gang with both local and international operations, for illegal firearms trafficking.

Money Laundering and Estimated Proceeds

Authorities believe that the cybercrime network laundered their extortion proceeds utilizing cryptocurrencies, remittance companies, and fraudulent money transfers. The total estimated amount moved by the network was approximately $250 million.

Cybercrime Concerns in the Dominican Republic

The dismantling of the cybercrime network underscores growing concerns about cybercrime in the Dominican Republic and the wider Caribbean region, which has witnessed an increase in fraud schemes since the onset of the COVID-19 pandemic. Cybercrime is now considered more lucrative than drug trafficking in the Dominican Republic during this time.

Legal Measures and Recent Developments

The Dominican Republic has had laws and regulations in place to combat cybercrime. Since 2013, the Procuraduría Especializada Contra Crímenes y Delitos de Alta Tecnología (PEDATEC) has focused on addressing cybercrimes like card cloning, phishing, electronic money transfers, telephone fraud, and identity theft.

Recently, the Dominican Republic’s President, Abinader, has prioritized the fight against corruption and organized crime, which includes targeting cybercrime.

Transnational Criminal Networks Targeting Americans

This cybercrime takedown marks just one example of the many transnational criminal networks that have targeted Americans from the Caribbean. In recent times, fraudulent schemes like Ponzi and pyramid schemes have emerged in countries such as Guyana, Trinidad and Tobago, and Barbados, exploiting victims recruited online.

Combatting Cybercrime in Caribbean Countries

Some Caribbean countries, like Guyana and Barbados, have taken measures to counteract this trend, introducing new cybercrime legislation and increasing public awareness of financial and cybercrimes.

Caricom Secretary-General Carla Barrett has emphasized cybercrime as the third-largest security concern in a recent meeting of Caribbean Community (Caricom) security ministers, alongside the situation in Haiti, trafficking, and human smuggling.