Financial Crime World

Title: Major Financial Scam Operating from Odesa, Ukraine: Arrests Made

Criminal Gang Defrauded Victims Posing as Bank Officials

In a joint operation, Ukrainian and Czech law enforcement agencies apprehended members of a criminal gang that defrauded victims over the phone, posing as bank officials. The group, responsible for more than 150 phone calls between 2022 and 2023, caused nearly 30 million Czech crowns ($1.2 million) in damages.

Arrests and Charges

  • Nine individuals were detained in Ukraine, including the organizer and the main recruiter from the Czech Republic.
  • Ukrainian members faced up to 12 years in prison and confiscation of their property if found guilty.
  • Others awaited extradition to the Czech Republic for up to 10 years in prison.

Group’s Slick Modus Operandi

Posing as employees of the Czech National Bank, group members tricked victims into believing their accounts had been compromised, leading to:

  1. Installing remote access software on victims’ computers
  2. Asking victims to withdraw cash and hand it over to bogus couriers

Call Center Uncovered: Seized Computers, Phones, and Luxury Items

Police reports published this week showed detained fraudsters in a room full of business phones and desks in Odesa’s call center. Obtained funds were converted into cryptocurrency, which was used to buy luxury cars, real estate, and more.

Collaborative Efforts to Combat Fraudsters

Ukrainian and Czech police, backed by over 100 officers, raided the criminals’ headquarters in Odesa. The scam participants could earn up to 200,000 crowns ($9,000) per month depending on their skills.

Previous Collaboration to Dismantle Similar Scams

This isn’t the first time Ukrainian and Czech police joined forces to dismantle criminal gangs involved in fraudulent phone calls and phishing websites. Although it’s unclear if these scams are connected, the tactics used are similar.

Daryna Antoniuk: Covering Cybersecurity and Crime in Ukraine

Daryna Antoniuk, Recorded Future News journalist based in Ukraine, focuses on covering cybersecurity startups, cyberattacks in Eastern Europe, and the cyberwar between Ukraine and Russia. Her work has appeared in publications like Forbes Ukraine, Sifted, The Kyiv Independent, and The Kyiv Post.