Ukrainian-Czech Criminal Gang Arrested for €8 Million Banking Scam in Czech Republic

A major transnational criminal organization, suspected of being based in Ukraine, has been dismantled by Ukrainian and Czech authorities. The gang, known for primarily targeting victims in the Czech Republic, made millions through fraudulent phone calls using a technique called “vishing.”

A Technique Called “Vishing”

According to a press release issued by the Czech National Police on Thursday, the gang used a combination of Voice and Phishing (vishing) to trick victims into revealing sensitive information such as passwords, credit card numbers, and personal details.

• Vishing: A technique that combines Voice (phone calls) and Phishing (requesting sensitive information)

Criminal Network and Modus Operandi

The criminal network numbered around 20 individuals, some of whom had prior records of violent crime, drug offenses, and document forgery, according to police.

The scammers posed as:

1. Bank security officers
2. Police officers

They employed the following tactics to deceive victims:

1. Claimed account had been hacked
2. Instructed victims to transfer money to a secure account controlled by criminals
3. Posied as police officers, confirming the hacking of the account and the necessity of the transfer

The criminals exploited a technique called “spoofing,” enabling them to display seemingly genuine numbers associated with banks and local police while using different numbers.

Extent of the Crime Wave

Czech police declared the criminal activity a “one of the most extensive in the history of Czech banking.” In April 2023, six suspects were arrested in Ukraine and later extradited to Czechia. Four suspects were arrested in Czechia.

• Approximately €8 million ($8.7 million) was reportedly obtained through these calls in the Czech Republic alone

Ukrainian authorities identified the gang’s two leaders - a Ukrainian and a Czech citizen. During the raid, the police seized:

• Mobile phones
• SIM cards
• Computer equipment

Penalties and Ongoing Investigations

If convicted in Czech courts, the suspects could face up to 12 years in prison. Investigations into the scope and impact of this crime wave continue, with international cooperation between Ukrainian and Czech authorities a top priority.

Daryna Antoniuk, a Recorded Future News reporter based in Ukraine, contributed to this article. Her work focuses on cybersecurity startups, cyberattacks in Eastern Europe, and the ongoing cyberwar between Ukraine and Russia. Previously, she reported on technology for Forbes Ukraine, and her work has appeared in numerous publications, including Sifted, The Kyiv Independent, and The Kyiv Post.