Financial Crime World

Estonia Hit by Widespread Financial Fraud

Scammers Target Residents with Fake Investment Opportunities and Phishing Messages

Despite efforts to combat financial fraud, Estonia has seen a significant increase in cases of investment and bank fraud in 2022. According to statistics released by the Police and Border Guard Board, there were 740 reported cases of financial fraud last year, with an average of two people falling victim to scams every day.

Investment Fraud on the Rise

Investment fraud accounted for nearly 36% of all cases, with losses totaling over €3 million. Bank fraud, on the other hand, saw 473 reported cases, resulting in losses of close to €2 million.

Scammers’ Favorite Schemes

  • Scam calls: Scammers pose as bank employees, police officers, or Google assistants to obtain sensitive information such as Smart-ID or Mobile-ID PINs.
  • Phishing text messages and emails: Scammers send fake messages and emails pretending to be from banks or other institutions.

How to Avoid Falling Victim

Urmet Tambre, head of the bureau for criminal investigation at the North Department of the Police and Border Guard Board, advises:

  • Exercise extreme caution when receiving unsolicited calls, emails, or messages with investment opportunities or requests for personal information.
  • Be wary of “good advice” that may lead to great harm.

Safe Investing Practices

Tambre urges people to consult their home bank for basic knowledge and advice on investing. He warns against investing through fraudulent websites and trading platforms.

Scammers’ Tactics Revealed

Scammers quickly move the scammed money between banks and accounts before withdrawing it in cash or converting it into cryptocurrency in foreign countries.

Recovery of Stolen Funds

In exceptional cases, money has been recovered when victims realize they have fallen victim to a scam and quickly contact their home bank to stop the transfer. However, Tambre warns that there are no signs of the activity of scammers slowing down, making it essential for people to remain vigilant against these types of financial fraud.

Conclusion

It is crucial for Estonians to be aware of the various schemes used by scammers and take necessary precautions to protect themselves from financial fraud. Remember: extreme caution and vigilance are key to avoiding becoming a victim of these scams.