Kazakhstan Sees 70% Surge in Internet Frauds in 2020

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In a disturbing trend, Kazakhstan has witnessed a significant increase in internet fraud cases in 2020, with the number of reported incidents rising by a whopping 70.6% compared to the previous year.

Rise in Reported Incidents

According to the legal statistics and special records committee of the General Prosecutor’s Office, there were over 7,000 such cases reported in 11 months of 2019, while in the same period of 2021, the number skyrocketed to over 12,000.

Common Methods Employed by Fraudsters

Fraudsters typically employ several methods to carry out their scams, including:

Hacking or copying social media pages and distributing requests for financial help on behalf of relatives or acquaintances
Posing as bank security department officers, calling customers and asking them to transfer money to a fake account
Taking out online loans on behalf of third parties using their documents and bank cards

Real-Life Scam Examples

A 60-year-old Kazakhstani woman fell victim to such a scam in September 2020, losing 400,000 tenge (approximately $955) after being tricked by an unknown criminal who claimed to be a police officer.

Authorities’ Warning and Advice

The authorities warn citizens to remain vigilant and not fall prey to these scams. They advise:

Never paying in advance
Only giving out money once the commodity has been received and inspected
Being cautious when entering websites of known banks or trading platforms
Never providing personal details to unknown persons, including TIN, E-signature, and CVV code on the back of the card

Additional Tips to Avoid Falling Victim

To avoid falling victim to these scams, citizens are advised to:

Never pay in advance
Only give out money once the commodity has been received and inspected
Be cautious when entering websites of known banks or trading platforms
Never tell bank card details to strangers under any pretext
Turn on SMS or Push notifications on payment cards to see all transactions
Never turn off 3D-secure function on payment cards

Authorities’ Efforts to Combat Pyramid Schemes

The authorities are taking steps to fight against pyramid schemes, including:

Investigating 217 criminal cases in 2020
Identifying 35 facts of pyramid schemes in the country
Developing a special programme to counter internet fraud
Creating a group to counter such crimes within the Centre to Fight Cybercrimes
Staffing operational-investigations groups in every region with qualified IT experts

Looking Ahead

Kazakhstan’s authorities are working to study global best practices to fight against pyramid schemes and financial fraud, proposing amendments to current laws and developing effective measures to counter these crimes.