Financial Crime World

Czech Police Detain Foreign Students Involved in Multi-Million Crowan Bank Fraud Case

Prague, Czech Republic

Czech police have announced the detention of ten foreign students, all identified as university attendees in Prague, for their involvement in a money laundering scandal connected to an internet fraud scheme.

Suspects Arrested for Money Laundering and Fraud

According to Jan Rybanský, a spokesperson for Prague police, the suspects moved around approximately CZK 15 million from the accounts of unsuspecting victims (Czech News Agency, 2023).

Victims of Internet Fraud Scheme

The victims were identified as 12 women who believed they were sending money to a doctor on a United Nations mission. The accused students either spent the funds or transferred them abroad, making it challenging for investigators to trace their origin.

Ongoing Investigation

The individuals are currently held in detention and risk imprisonment terms of up to eight years if convicted of their involvement in the fraud and money laundering criminal activities. The police investigation into the case commenced last October, following alerts from the Financial Analytical Office regarding suspected criminal dealings.

Common Internet Scams in the Czech Republic

Rybanský explained that these fraudulent schemes are unfortunately common in the Czech Republic and targeted predominantly women on social media platforms (Prague Monitor, 2023).

Psychological Tactics and Romance Scams

Scammers often use various personas, such as soldiers on missions in Afghanistan, miners on oil platforms, or doctors on UN missions, to pique the interest of potential victims. They employ psychological tactics to coerce women into sending money under the false pretense of meeting the persona in question.

In another related incident, the South Moravian police, in collaboration with customs officers, arrested a Czech woman for laundering money totaling over 11 million crowns obtained through an internet scam on behalf of a criminal group based in Austria (South Moravian Police, 2023).

Romance Scams and Monetary Losses

Similar to the Prague case, the women were drawn into romance scams online and consequently fell victim to the fraud. South Moravian police spokesperson Pavel Sváb confirmed the incident in mid-May, adding that numerous individuals were affected by the scam.

The legal proceedings against the scammers and their ringleader, who were arrested in January, have already started in Austria.