Catfishing for Cash: A Case Study of Cross-Border Russian-Speaking Financial Crime Networks in Poland

• In Event: Euroc: Crimes and regulation in the financial and cryptocurrency markets

Abstract

The paper analyzes the sophisticated techniques employed by cybercriminals to defraud non-professional investors. The fraudulent schemes involve the creation of deceptively realistic websites and mobile applications, promising exceptionally high returns with minimal or no risk. These alluring offers are frequently promoted via targeted social media campaigns, leveraging advanced algorithmic data analysis to identify and exploit potential victims based on their online behavior and financial profiles. Predominantly perpetrated by organized crime groups based in Ukraine and Russia, operating outside the EU's jurisdictional reach, these scams often involve intricate layers of deception and obfuscation. The study illuminates the significant role of EU residents in unwittingly or deliberately facilitating money laundering activities crucial to these schemes' success. This includes instances where unwitting individuals are used as "money mules" or knowingly participate in the movement of illicit funds. Further complicating the matter is the disturbing practice of these criminal groups offering fraudulent "recovery services," preying on victims who have already been scammed. The research also uncovers concerning connections between these sophisticated criminal organizations and seemingly legitimate financial institutions, highlighting the need for enhanced regulatory scrutiny and cross-border collaboration to combat this pervasive form of financial crime. This research was supported by the National Science Centre (Poland) through the PRELUDIUM-21 program (grant no. 2022/45/N/HS5/04118).

Author

• Szymon Michał Buczyński, University of Warmia and Mazury in Olsztyn, Poland