Financial Crime World

Title: Dominican Police Disrupt Major Cybercrime Network: Arrest Over 70 Suspects in $200 Million Extortion Scam

Overview

  • The Dominican Republic’s National Police dismantle transnational cybercrime network
  • Over $200 million extorted from U.S. citizens
  • Over 70 suspects arrested

Raids and Seizures

  • Series of raids on March 2, 2023
  • Approximately $400,000 in cash and 19 million Dominican pesos (around $350,000) seized
  • Over 30 luxury vehicles, hundreds of electronic devices, and firearms confiscated
  • Simultaneous raids in New York City by FBI

Extortion Methods

  • Economic and sexual extortion, identity theft, gun trafficking
  • Impersonating individuals to demand extortion payments
  • Promising controlled drugs and posing as FBI agents

Alleged Criminal Organizations

  • Trafficking firearms with the help of a separate criminal organization, the Trinitarios
  • Operations in New York, Spain, and Italy

Money Laundering

  • Proceeds laundered through cryptocurrencies, remittance companies, and fraudulent money transfers
  • Local authorities estimate around $250 million was laundered

Regionwide Impact

  • Significant blow to organized crime in the Dominican Republic
  • Caribbean region faces growing threat of financial cybercrimes
  • Dominican Republic has been proactive in combating cybercrime
  • Stricter cybercrime laws in Guyana
  • Barbados investigates and reports financial and cybercrimes aggressively

Extortion Tactics

The Dominican Republic’s National Police have dismantled a transnational cybercrime network, believed to have defrauded hundreds of U.S. citizens out of more than $200 million. On March 2, 2023, over 70 suspects were arrested in the cities of Santiago, Santo Domingo, La Vega, and Puerto Plata.

Seizures

During the raids, law enforcement officials seized approximately $400,000 in cash, over 19 million Dominican pesos (around $350,000), around 30 luxury vehicles, and hundreds of electronic devices and firearms. U.S. Federal Bureau of Investigation (FBI) agents conducted simultaneous raids in New York City but have yet to release details on their findings.

Targeting of Victims

Victims were targeted through various identity theft schemes. Scammers impersonated individuals and demanded extortion payments after threatening to kidnap family members by spoofing caller IDs. In other cases, they promised controlled drugs and then contacted the victims under the guise of FBI agents, demanding payments for fear of prosecution.

Trafficking of Firearms

The alleged criminals are believed to have trafficked firearms with the help of a separate criminal organization, the Trinitarios. The Trinitarios, one of the Dominican Republic’s most active gangs, have operations in New York, Spain, and Italy. The FBI previously arrested members of this organization on weapons trafficking and racketeering charges.

Money Laundering

The cybercrime network reportedly laundered their proceeds through various methods, including cryptocurrencies, deposits with remittance companies, and fraudulent money transfers. Local authorities estimate that the network laundered around $250 million.

Regions Impacted

This incident marks a significant blow to organized crime in the Dominican Republic and underscores the growing threat of financial cybercrimes in the Caribbean region. The Dominican Republic has been vigilant in its efforts to combat cybercrime since the pandemic began.

Recent Efforts

President Abinader has prioritized the fight against corruption and financial crimes. In October 2021, the Dominican Republic joined 30 countries in signing the initiative against ransomware and data hijacking.

Regionwide Concerns

The wave of cybercrime in the Caribbean continues to grow, with countries like Guyana and Barbados reporting numerous Ponzi and pyramid schemes over the past year. Guyana has recently passed stricter laws against cybercrime, fining offenders up to $5 million for orchestrating fraudulent schemes. Barbados continues to investigate and report financial and cybercrimes aggressively.

Regional security ministers from the Caribbean Community (Caricom) recently listed cybercrime as the third-largest security concern, trailing behind the situation in Haiti and trafficking/human smuggling.