Financial Crime World

Czech Police and Ukrainian Authorities Dismantle Transnational Criminal Gang Behind €8 Million Phone Fraud

In a coordinated operation, Ukrainian and Czech law enforcement agencies took down a transnational criminal gang that swindled millions of dollars from victims through sophisticated phone scams.

Criminals Operated Call Centers in Ukraine, Targeted Individuals in the Czech Republic

The gang, which is estimated to have defrauded approximately €8 million ($8.7 million) in the Czech Republic alone, targeted individuals primarily in the Czech Republic using a technique called “vishing” (voice phishing).

Technique of Vishing

Criminals called their targets posing as bank security officers or even police officials. They manipulated their voices to convincingly impersonate authentic representatives of financial institutions and public services.

Once a victim was on the phone, the scam artists would trick them into revealing sensitive information.

Two-Call Scam to Gain Victims’ Trust

The criminals made two calls to gain their victims’ trust:

  1. During the initial call, they posed as bank security officers, instructing victims to transfer funds to a ‘secured’ account provided by the scammers.
  2. In the second call, they posed as police officers, confirming the ‘hacking’ of the victim’s account and urging them to move their funds as requested.

Spoofing Tactics to Mask Caller’s Identity

To make their calls appear legitimate, the criminals employed a tactic called spoofing. Spoofing masks a caller’s real number, allowing the scam artists to show a seemingly genuine number connected to banks and local police to their targets.

Investigation and Arrests

During the investigation, four suspects were arrested in the Czech Republic in April, while six suspects were detained in Ukraine and later extradited. Searches of their apartments and offices led to the confiscation of mobile phones, SIM cards, and computer equipment.

Led by Two Individuals, Orchestrated Nearly 20 People

The crime ring was led by two individuals - one from Ukraine and one from the Czech Republic - who orchestrated nearly 20 people to join their illicit scheme. The ages of the suspects range from 18 to 29, and some have criminal histories involving violent crimes, drug offenses, and document forgery.

Potential Sentences if Found Guilty

If found guilty in a Czech court, the suspects face potential sentences of up to 12 years in prison.

Media Contact

For media inquiries, contact Daryna Antoniuk, Reporter, Recorded Future News:

Daryna Antoniuk is a seasoned journalist based in Ukraine, covering cybersecurity startups, cyberattacks in Eastern Europe, and the state of the cyberwar between Ukraine and Russia. Previously, she was a technology reporter for Forbes Ukraine. Her work has also appeared in Sifted, The Kyiv Independent, and The Kyiv Post.