Financial Crime World

Criminal Gang Disrupted: Czech-Ukrainian Partnership Exposes Bank Fraud Operation in Odesa

Transnational Criminal Gang Uncovered

In a coordinated operation, law enforcement agencies in the Czech Republic and Ukraine have disrupted a transnational criminal gang accused of defrauding victims by impersonating bank officials. The group predominantly targeted Czech citizens.

Arrests made in Odessa

  • Nine individuals were detained for their roles in the criminal case.
  • A video shared by Ukrainian authorities shows the suspects in custody, surrounded by business phones and desks.

Fraudsters Disguised as Bank Officials

The suspects disguised themselves as representatives of the Czech National Bank, tricking hundreds of unsuspecting victims into:

  1. Transferring funds
  2. Installing software that granted remote access to their online banking.
  3. Withdrawing cash and handing it over to fake couriers.

Damages and Proceeds from the Illegal Activities

  • Between 2022 and 2023, the fraudsters reportedly made over 150 calls.
  • Nearly 30 million Czech crowns ($1.2 million) in damages were caused.
  • The criminals allegedly used the proceeds from the illegal activities to buy real estate, high-end cars, and convert illicit gains into cryptocurrency.

Complex Bank Fraud Investigation

  • The investigation took Czech police over a year and a half to unravel.
  • Suspects hid behind the real names and phone numbers of legitimate bank employees.

Simultaneous Raids and Seizures

  • Over 100 officers from both countries executed warrants simultaneously.
  • 23 raids were carried out, and:
    • Computers
    • Mobile phones
    • Luxury cars
    • Cash
    • Weapons
    • Drugs

Key Detainees

  • The 40-year-old gang’s organizer was among those arrested.
  • A 50-year-old woman, initially a fake operator, rose to become the primary recruiter for the Czech Republic.
    • She placed job advertisements
    • Interviewed candidates
    • Trained new members
    • Coordinated their travels to Ukraine.

Previous Collaboration Between Ukrainian and Czech Police

  • This partnership marks the latest collaboration between the Ukrainian and Czech police forces to apprehend criminals orchestrating internet-based schemes.
  • In November 2022, they dismantled a similar gang making millions of dollars through fraudulent phone calls but there was no direct connection confirmed between the cases.

Previous Schemes

  • Previous schemes involved similar groups targeting victims through phishing websites, resulting in the theft of banking information.
  • In January 2023, cybercriminals made tens of thousands of dollars this way, primarily targeting users in the Czech Republic.
  • Later, victims were contacted and convinced to pay for goods or services by clicking on provided links.