Financial Crime World

Title: “Operation Discovery: Dominican Republic Disbands Transnational Cybercrime Network, Defrauding Hundreds of US Citizens of over $200 Million”

Dismantling the Transnational Cybercrime Network in the Dominican Republic

The Caribbean island nation of the Dominican Republic announced the successful dismantlement of a transnational cybercrime network, which is believed to have extorted hundreds of US citizens, collectively losing over $200 million. This major operation, named “Operation Discovery,” took place on March 2, 2023.

Raids and Arrests

Law enforcement in the Dominican Republic carried out a series of raids in various locations, including Santiago, Santo Domingo, La Vega, and Puerto Plata. Over 70 suspicious individuals were arrested during these operations. The raids uncovered:

  • Around $400,000 in cash
  • Up to 30 luxury vehicles
  • Hundreds of electronic devices

Additionally, officials apprehended another criminal organization, the Trinitarios, for aiding the network in illegal firearms trafficking.

Simultaneous Raids by the FBI

The FBI conducted raids in New York City, although the details of these operations have not yet been made public.

Increase in Cybercrime Due to COVID-19

As financial gains from cybercrime have risen during the early stages of the COVID-19 pandemic, cybercrime has become a more profitable activity than drug trafficking in the Dominican Republic, according to local media reports. Closures of businesses and schools led to a surge in:

  1. Sextortion
  2. Extortion and kidnapping for ransom payments
  3. Offering unprescribed controlled drugs to victims and blackmailing them

Fight Against Cybercrime and Corruption

Since President Abinader assumed office in 2020, the Dominican Republic has become a part of the initiative against ransomware and data hijacking. With the rise of cybercrime in the Caribbean, the country prioritizes the fight against corruption and organized crime.

Ponzi and Pyramid Schemes

As cybercrime escalates in the Caribbean, Ponzi and pyramid schemes have emerged, targeting victims online and requesting small investments for massive returns. Some affected countries include:

  • Guyana
  • Trinidad and Tobago
  • Barbados
  • Antigua and Barbuda

Recently, Guyana has even started imposing fines on cybercriminals.

Cybercrime as the Third Most Significant Security Concern

At the Caricom security ministers’ meeting, Caricom Secretary General Carla Barret emphasized cybercrime as the third most significant security concern behind the situation in Haiti and trafficking and human smuggling.