A technology-driven global threat

LONDON, United Kingdom – A new INTERPOL assessment of global financial fraud highlights how the increased use of technology is enabling organized crime groups to better target victims around the world.

The use of Artificial Intelligence (AI), large language models and cryptocurrencies, combined with phishing and ransomware-as-a-service business models, have resulted in more sophisticated and professional fraud campaigns, without the need for advanced technical skills and at a relatively low cost. low. .

The analysis behind INTERPOL’s Global Financial Fraud Assessment also points to the global expansion of human trafficking for the purposes of forced criminality in call centers, particularly to carry out “pig slaughter” frauds – a hybrid scheme that combines romantic and investment scams using cryptocurrencies.

INTERPOL Secretary General Jürgen Stock said:

“We are facing an epidemic in the growth of financial fraud, which leads to individuals, often vulnerable people, and companies being defrauded on a massive, global scale.

“Changes in technology and the rapid increase in the scale and volume of organized crime have driven the creation of a host of new ways to defraud innocent people, businesses and even governments. With the development of AI and cryptocurrencies, the situation will only get worse without urgent measures.

“It is important that there are no safe havens for financial fraudsters to operate. We must close existing gaps and ensure that information sharing across sectors and across borders is the norm, not the exception.

“We also need to encourage greater reporting of financial crimes, as well as invest in capacity development and training for law enforcement authorities, in order to develop a more effective and truly global response.”

The report is being launched by the Secretary-General at the Financial Fraud Summit hosted by the UK government in London.

Key findings

Other key findings from the report, which is for law enforcement use only, include:

• The most prevalent global trends are investment fraud, advance payment fraud, romance fraud and business email compromise
• Financial fraud is most often carried out by a network of co-offenders, ranging from highly structured to loosely affiliated.
• An urgent need to strengthen data collection and analysis in order to develop more informed and effective counter-strategies.

To effectively address this escalation in global crime and close crucial information gaps, one of the report’s recommendations is the need to create multi-actor public-private partnerships to track and recover funds lost to financial fraud.

Since the launch of INTERPOL’s Global Rapid Payments Intervention Mechanism (I-GRIP) in 2022, the Organization has helped member countries intercept more than $500 million in criminal proceeds, largely arising from cyber fraud.

Regional Trends in Financial Fraud

Africa

Business email compromise continues to be one of the most prevalent trends in Africa, however, there is an increasing use of pig slaughter fraud. Cases of this type of fraud have been identified in West and Southern Africa, targeting victims in other jurisdictions outside the continent.

Certain West African criminal groups, including Black Axe, the Airlords and Supreme Eiye, continue to grow transnationally and are known to have extensive capabilities in online financial fraud, such as romance fraud, investment fraud, advance fee fraud and fraud. cryptocurrency.

Americas

The most common types of fraud in the Americas are impersonation, romance, technical support, advance payment, and telecommunications fraud.

Fraud fueled by human trafficking continues to be a growing criminal phenomenon. INTERPOL’s coordinated operation, Operation Turquoise Vrevealed that hundreds of victims were trafficked out of the region after being lured through messaging apps and social media platforms and coerced into committing fraud, including investment fraud and pig slaughter.

There is emerging evidence that Latin American crime syndicates such as Comando Vermelho, Primeiro Comando da Capital (PCC) and the Jalisco New Generation Cartel (CJNG) are also involved in financial fraud.

Asia

Fraudulent pig slaughter schemes began in Asia in 2019 and expanded during the COVID-19 pandemic. Subsequently, Asia emerged as a focal point, with criminal organizations in poorer countries across the region employing business-like structures.

Another type of fraud that has seen an increase in recent years in Asia is a type of telecommunications fraud in which perpetrators pose as law enforcement or bank employees to trick victims into revealing their credit card credentials or bank account or for them to hand over huge amounts of money.

Europe

Online investment scams, phishing and other online financial fraud schemes target carefully selected targets to maximize profits. Mobile applications are also being targeted by cybercriminals.

The criminal networks involved in these online schemes often have sophisticated and complex modi operandi, which are usually a combination of different types of fraud.

Pig slaughter, predominantly carried out in call centers in Southeast Asia, is also on the rise.

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