Financial Crime World

Latvia Grapples with Rising Tide of Identity Theft in Finance

The Office for Prevention of Laundering of Proceeds Derived from Criminal Activity (FID) has shifted its focus to combat online fraud, particularly identity theft, as it becomes a growing menace in the country. According to FID head Ilze Znotiņa, fraudsters are using increasingly sophisticated methods to deceive victims and steal their savings.

Online Fraud on the Rise

Znotiņa warns that people should be cautious of promises of high returns on investments, which are often used by organized criminal groups to lure unsuspecting individuals into fraudulent schemes. These scams have resulted in millions of euros in losses for victims.

  • Typical characteristics of online fraud:
    • Promises of high returns on investments
    • Organized criminal groups involved
    • Millions of euros lost by victims

FID’s Response to the Pandemic

The pandemic has brought about a surge in online fraud cases involving smaller amounts of money. As a result, the service is diverting more resources to help those who have fallen victim to these types of crimes.

  • Increased focus on online fraud cases
  • More resources allocated to assist victims

Forms of Online Fraud

Znotiņa notes that most attempted online fraud cases are committed by organized groups with a low chance of being caught. The FID head also highlighted various forms of fraud, including:

  • Counterfeiting
  • Payment fraud
  • Fundraising for sham charities
  • Impersonation of officials or business representatives to obtain information
  • Identity theft
  • Investments in questionable financial transactions

Common Types of Online Fraud

The most common type of online fraud in Latvia is identity theft, where perpetrators hijack bank accounts and change passwords and bank codes, preventing owners from accessing their accounts. Computer hacking and passport data theft are also significant problems.

  • Identity theft: hijacking bank accounts and changing passwords/bank codes
  • Computer hacking
  • Passport data theft

Younger People Vulnerable to Online Fraud

Znotiņa emphasized that even younger people are becoming victims of online fraud and identity theft, often being cheated or pulled into criminal schemes as money mules for financial transactions or transit account holders to process illegal finances.

  • Younger people increasingly becoming victims
  • Money muling and transit account involvement

The pandemic has increased the risks of fraud, making it a threat to individuals and organizations alike.

  • Increased risk due to pandemic
  • Threat to individuals and organizations

A National Threat?

Znotiņa believes that online fraud has reached the level of a national threat, raising questions about whether people can trust the government, police, and courts to punish perpetrators and recover stolen funds.

  • Online fraud at national threat level
  • Trust in government, police, and courts questioned

No One is Truly Safe

With online fraud risks present in all countries around the world, Znotiņa stresses that no one is truly safe from these crimes.