Czech Republic Wakes Up to Widespread Financial Fraud: A Major Crackdown on a Criminal Gang

Arrests of a Sophisticated Criminal Gang in Odesa, Ukraine

In a significant operation against financial fraud, Czech and Ukrainian law enforcement agencies have arrested nine individuals believed to be part of a criminal gang that defrauded hundreds of unsuspecting victims over the past year. The bust, which took place in the Ukrainian port city of Odesa, involved over 100 police officers conducting raids and searches in both countries.

According to Ukrainian and Czech authorities, the fraudsters posed as representatives of the Czech National Bank, tricking victims through phone calls. The criminals employed social engineering tactics to hide their identity during these calls, using real names and phone numbers of real bank employees. In some instances, the gang convinced people to install remote access software, providing them with access to the victims’ online banking details. In others, the gang requested victims to withdraw cash and hand it over to a fake courier for ‘safekeeping.’

Damages and Assets: The Scale and Consequences of the Fraud

Between 2022 and 2023, the fraudsters allegedly made over 150 calls, causing an estimated 30 million Czech crowns ($1.2 million) in damages. The illegally obtained funds were then reportedly converted into cryptocurrency, used to purchase luxury cars, real estate, and other assets.

Identifying the Suspects: A Long and Complex Investigation

One of the detainees was a 40-year-old Ukrainian man who organized the operation, and a 50-year-old woman from the Czech Republic, initially a fake operator, was identified as the main recruiter. Potential recruits could earn up to 200,000 Czech crowns ($9,000) per month depending on their skills. Seized during the operation were computer equipment and mobile phones, along with cars, thousands of dollars in various currencies, drugs, and weapons.

Penalties and Extradition: The Consequences Faced by the Criminals

The Ukrainian members of the gang may face up to 12 years in prison and confiscation of their property. Those awaiting extradition to the Czech Republic may face up to 10 years in prison.

Multi-national Collaboration: Tackling Cybercrimes Between Czech Republic and Ukraine

This case represents the third multi-national collaboration between Czech and Ukrainian law enforcement agencies in addressing cybercrimes. In November 2022 and January 2023, criminal gangs were dismantled in similar cases involving fraud tactics but not confirmed to be part of the same criminal organization.

Reporter’s Contribution: Daryna Antoniuk’s Focus on Cybercrime and Cybersecurity

Daryna Antoniuk, a Recorded Future News reporter based in Ukraine, contributed to this article. Her work primarily focuses on cybersecurity startups, cyberattacks in Eastern Europe, and the cyberwar between Ukraine and Russia. Her previous work can be seen in Forbes Ukraine, Sifted, The Kyiv Independent, and The Kyiv Post.