Financial Crime World

Slovakia’s Shadow Economy: Human Trafficking, Arms Smuggling, Cyber Crimes, and Financial Fraud

An In-Depth Look into the Criminal Markets Thriving in Slovakia

The Eastern European nation of Slovakia has long been a crossroads for illicit activities, from human trafficking and arms smuggling to cyber crimes and financial fraud. While Slovakia is making strides towards European Union integration and economic development, its shadow economy remains a concern.

Human Trafficking

People from Slovakia and foreigners alike have been victims of human trafficking in the country. Traffickers exploit Slovak men and women for forced labor in agriculture, manufacturing, and construction in Western Europe. Foreigners, mainly from the Balkans and South East Asia, are vulnerable to forced labor and may be unable or afraid to seek help from authorities.

  • Women, including Slovak and South East Asian victims, are also exploited for sex trafficking.
  • Ukrainian refugees, especially women and children, are also at risk due to the ongoing conflict in their country.

Arms Smuggling

Slovakia has been a long-standing transit country for arms smuggling. Favorites include:

  • Flobert conversions
  • Acoustic expansion weapons, which criminal groups prefer over alarm weapons due to their versatility in robberies, attacks, and protection.
  • The recent war in Ukraine added new complications, with Slovakian arms traffickers exploiting these opportunities in an already bustling market.

Cyber Crimes

The cyber criminal landscape in Slovakia has been on the rise. Various types of attacks have targeted organizations in:

  • IT sector
  • Energy sector
  • Public administration sector
  • Telecommunications sector

Foreign actors, particularly those from Russia, have been behind many of these attacks, making cyber security a top priority.

Financial Crimes

Financial crimes, such as:

  • Tax evasion
  • VAT fraud
  • Misuse and embezzlement of funds
  • Phishing attacks

are increasingly pervasive in Slovakia. Despite efforts to crack down, investigations reveal the challenges faced by the financial crimes unit of the police and the financial authority during the previous administration.

Criminal Actors

State-embedded actors continue to pose a concern in Slovakia, with corruption and bribery allegations surfacing regularly. Criminal networks and groups in Slovakia are involved in various forms of crime, often using:

  • Violence
  • Corruption
  • Sustaining contacts in high-level political and law enforcement agencies

Foreign actors, such as:

  • Hungarian groups
  • Vietnamese groups
  • Italian groups
  • Balkan groups

are also involved in organized crime, primarily drug trafficking, and use Slovakia as a base for their operations.

In a world where globalization has blurred borders, understanding the interconnected web of criminal markets is crucial. Slovakia’s shadow economy is a testament to the ongoing challenges faced by law enforcement and international organizations in their efforts to combat transnational crimes.