Dominican Republic Dismantles Major Cybercrime Network, Seizes Millions in Cash and Assets
In a significant blow to transnational criminal organizations, the Dominican Republic authorities have dismantled a major cybercrime network believed to have defrauded hundreds of US citizens out of more than $200 million. The operation, dubbed “Operation Discovery,” was launched over a year ago and culminated in a series of raids on March 2.
Background
The criminal network used various identity theft schemes to extract money from victims, including:
- Caller-ID spoofing services
- Fake FBI impersonations
- Trafficking illegal firearms with the help of the Trinitarios organization, which has been linked to arms trafficking and racketeering in the US, Spain, and Italy.
Operation Discovery
The operation involved hundreds of law enforcement officials and targeted call centers in Santiago, Santo Domingo, La Vega, and Puerto Plata. Authorities arrested around 70 people suspected of working for the cybercrime ring and seized:
- $400,000 in cash
- Luxury vehicles
- Electronic equipment
- Firearms
Laundering Extortion Proceeds
The network allegedly used cryptocurrencies, remittance companies, and fraudulent money transfers to launder their extortion proceeds. The Attorney General’s Office estimates that the cybercrime network moved around $250 million.
Growing Threat of Financial Crime in the Caribbean
The recent operation highlights the growing threat posed by financial crime operations in the Caribbean, particularly since the start of the COVID-19 pandemic. Cybercrime has increased significantly in the Dominican Republic, with some reports suggesting it is now more lucrative than drug trafficking.
Country’s Efforts to Combat Cybercrime
The country has established laws and regulations aimed at fighting cybercrime, including a special prosecutor’s office that played a key role in Operation Discovery. President Abinader has also prioritized the fight against corruption and organized crime since taking office in August 2020.
Regional Concerns
Across the Caribbean, there is a concerning trend regarding the growth of cybercrime, with numerous Ponzi and pyramid schemes reported in countries such as:
- Guyana
- Trinidad and Tobago
- Barbados
- Antigua and Barbuda
Some countries have passed legislation to combat these schemes, while others are working to identify and report financial and cybercrimes. The Caricom Secretary General has listed cybercrime as the third-largest security concern in the region, behind the situation in Haiti and trafficking and human smuggling.
Conclusion
The recent dismantling of the cybercrime network is a major success for Dominican authorities and serves as a warning to transnational criminal organizations that they will be targeted by law enforcement agencies. This operation demonstrates the importance of international cooperation in combating financial crime and protecting citizens from cyber threats.