Financial Crime World

Dominican Republic Dismantles Transnational Cybercrime Network, Netting $200 Million in US Losses

In a major blow to organized crime, authorities in the Dominican Republic have dismantled a transnational cybercrime network that allegedly defrauded hundreds of American citizens out of more than $200 million. This operation marks another example of the growing threat posed by financial crime operations in the Caribbean.

Operation Discovery: A Series of Raids

On March 2, hundreds of law enforcement officials carried out a series of raids at call centers in Santiago, Santo Domingo, La Vega, and Puerto Plata, arresting around 70 individuals allegedly linked to the cybercrime ring. Authorities seized $400,000 in cash, luxury vehicles, electronic equipment, and firearms during the raids.

US Federal Bureau of Investigation (FBI) Raids

The US FBI conducted simultaneous raids in New York City, but has yet to release information on those operations.

Criminal Network Tactics

The criminal network used various identity theft schemes to extract money from victims, including:

  • Calling individuals with fake IDs
  • Extorting payments for supposed medical services
  • Trafficking illegal firearms

To launder their proceeds, the group allegedly used:

  • Cryptocurrencies
  • Remittance companies
  • Fraudulent money transfers

Estimated Losses and Impact

The Dominican Attorney General’s Office estimated that the cybercrime network moved around $250 million in total. The dismantling of the network highlights two key 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 sexual extortion also skyrocketing as social life moved online.

Government Efforts

The Dominican government has long-established laws and regulations aimed at fighting cybercrime, including a special prosecutor’s office that focuses on cybercrimes like card cloning, phishing scams, and identity theft. The country’s president, Abinader, has prioritized the fight against corruption and organized crime since taking office in August 2020.

Caribbean Cybercrime Concerns

Across the Caribbean, there is a concerning trend regarding the growth of cybercrime, with numerous Ponzi and pyramid schemes cropping up during the pandemic. Some countries have since passed legislation to fight against these schemes, including Guyana’s new cybercrime bill that fines cybercriminals up to $5 million for orchestrating fraudulent endeavors.

Caricom Meeting

In a recent meeting between Caribbean Community (Caricom) security ministers, Caricom Secretary General Carla Barret listed cybercrime as the third-largest security concern behind the situation in Haiti and human trafficking.