Financial Crime World

Types of Banking Scams in Cyprus Exposed: A Growing Concern for Businesses and Individuals

Cybercriminals are rapidly developing and boosting their attacks at an alarming pace, exploiting the increasing online dependency of businesses and individuals worldwide. In Cyprus, the Ministry of Justice and Public Order together with the Cyprus police are responsible for preventing and combating cybercrime.

The Rise of Internet Fraud Cases in Cyprus

Internet fraud cases, which include phishing, impersonation, credit card and identification theft, and hacking activities designed to swindle people or businesses out of money, have been on the rise in recent years. According to Interpol officials, since the pandemic outbreak, cybercriminals have been developing and boosting their attacks at an alarming pace.

Common Types of Internet Fraud Cases

  • Phishing: sending fraudulent emails or messages that appear to be from a legitimate source
  • Impersonation: pretending to be someone else in order to deceive or manipulate individuals or businesses
  • Credit card and identification theft: stealing personal information and using it for financial gain
  • Hacking activities: unauthorized access to computer systems or networks

Investigating Cybercrime in Cyprus

The Office for Combating Cybercrime (OCC) is responsible for investigating crimes committed via the internet or computers. The OCC cooperates closely with EU authorities and third countries on the basis of bilateral and multilateral agreements.

  • Law 22(III)/2004: ratifies the Budapest Convention on Cybercrime, covering hacking, child pornography, and fraud committed via electronic communication and the internet
  • Law 147(I)/2015: implements Directive 2013/40/EU on attacks against information systems

Cyprus Courts’ Approach to Handling Internet Fraud Cases

The Cyprus courts have shown a willingness to adapt and keep pace with cybercriminals, handling numerous internet fraud cases for clients. Stolen funds are often transferred immediately to multiple bank accounts in various jurisdictions around the globe. The courts can assist by granting freezing orders to ensure that stolen funds are not further alienated, as well as Norwich Pharmacal relief orders against banks to learn the identity of account holders.

Recent Case: Impersonation and Freezing Orders

In a recent impersonation case, the District Court of Nicosia granted ex parte a freezing order and gagging order against the bank. The court has also acknowledged the difficulties in serving anonymous defendants or those who do not want to be found, recently granting a novel form of alternative service via Facebook Messenger.

Conclusion

As the fight against cybercrime continues, it remains to be seen who will ultimately prevail. Both authorities and courts have shown good reflexes in assisting corporations and private individuals who have fallen victims of cybercriminals. However, cybercriminals have always been able to develop even more sophisticated cybercrime techniques. It is essential for businesses and individuals to remain vigilant and take necessary precautions to protect themselves against these types of attacks.