Ukrainian Police Crack Down on Major Online Fraud Gang
In a coordinated effort with European law enforcement agencies, Ukrainian police have successfully disrupted a major online fraud gang responsible for an estimated $200 million in losses. The operation involved the country’s Cyber Police Department, the Main Investigative Department of the National Police, the Office of the Prosecutor General, and representatives from Europol.
Five suspected members of the fraud gang, all Ukrainian nationals, were arrested, and 500 mobile devices and pieces of computer equipment were seized during the operation. The suspects’ homes were searched, as well as the group’s call centers in Kyiv and Ivano-Frankivsk. Additionally, police in other European countries, including Albania, Finland, Georgia, Germany, Latvia, and Spain, conducted raids on suspected members’ homes.
The fraudsters targeted investors, enticing them to invest in cryptocurrency or trade in stocks, bonds, futures, and options. Despite assurances from the scammers that their investments were growing, victims were unable to cash out, according to the Ukrainian Cyber Police. The group operated call centers across Europe, including three in Ukraine, employing approximately 2000 individuals. The five arrested suspects were identified as managers at these call centers.
Investment fraud is a lucrative scheme for cyber-criminals, with nearly $1.5 billion in losses reported to the FBI last year from only 20,500 cases. This raid by Ukrainian police comes on the heels of a previous operation in June, where nine alleged members of a phishing gang were arrested for making 100 million hryvnias ($3.4 million) by deceiving locals with promises of EU financial support.
The arrested individuals will face trial under Part 3 of Article 190 of the Criminal Code of Ukraine, which could result in up to eight years of imprisonment. The crackdown on online fraud by Ukrainian police demonstrates their commitment to combating cybercrime and protecting citizens from financial scams.