Financial Crime World

Czech Police Uncover Massive Banking Fraud Ring Operating from Ukraine

A police raid in a Ukrainian apartment as part of the operation to dismantle the fraudulent call center.

Arrest of a Criminal Group that Made Millions through Vishing

Ukrainian and Czech law enforcement agencies have taken down a sophisticated criminal group that made millions through fraudulent phone calls, primarily targeting victims in the Czech Republic. The criminals, who operated from call centers in Ukraine, used a technique called “vishing” to deceive their victims into revealing sensitive financial information.

Joint Efforts of Czech and Ukrainian Officials

According to a joint statement issued by Czech and Ukrainian officials on Thursday, the gang used a fraudulent strategy that combines voice and phishing, known as “vishing,” to trick their victims into sharing crucial data such as passwords, credit card numbers, and personal details (Czech National Police & Ukrainian Ministry of Internal Affairs, 2023).

Infiltrating Trust with Spoofed Calls

Posing as officials from Czech banks and local police, the scammers called their victims, claiming that their accounts had been compromised. To supposedly protect their funds, the victims were instructed to transfer their money to a “secure” account provided by the criminals. After the victims complied, the fraudsters made a third call, allegedly from a local police officer, confirming that the account had indeed been hacked and stating the necessity to transfer the money.

To conceal their true numbers, the criminals utilized a technique known as spoofing, which allowed them to display phone numbers associated with genuine banks and local authorities during the calls.

Approximately €8 Million Fraud Uncovered in Czechia

The criminal group raked in approximately €8 million ($8.7 million) through such calls in the Czech Republic alone, Czech police reported. The authorities called it “one of the most extensive series of frauds committed through fake bankers” (Czech National Police, 2023).

April Arrests

Four suspects were arrested in the Czech Republic in April as part of the joint investigation, with six others being detained in Ukraine and later extradited to Czechia (Czech National Police, 2023). During the crackdown, Czech police seized mobile phones, SIM cards, and computer equipment.

Two Leaders in Charge

Ukrainian authorities reported in September that the gang’s operations were managed by two leaders – a Ukrainian and a Czech citizen – who recruited nearly 20 individuals to work for them. The suspects, ranging in age from 18 to 29, have prior criminal records, including violent crime, drug offenses, and document forgery (Ukrainian Ministry of Internal Affairs, 2023).

Up to 12 Years in Prison

If convicted, the suspects may face up to 12 years in prison in the Czech Republic (Czech National Police, 2023). The investigation is ongoing to determine the full scope of the criminal network’s activities and any potential connections to other foreign nations.

Contributing Journalist

  • Daryna Antoniuk
  • Recorded Future News reporter
  • Covers cybersecurity startups, cyberattacks in Eastern Europe, and the cyberwar between Ukraine and Russia
  • Previous experience at Forbes Ukraine and Sifted, The Kyiv Independent, and The Kyiv Post.

References: