The Europol once again have dismantled an international organized group (OGC) making millions off real estate fraud. Operations against the gang began back in 2017 however during a 10 so-called “action days” between September 2020 and September 2021 the OGC was taken down.
A total of 130 suspects were identified and 116 searches conducted with its leader found in hiding in the Dominican Republic on fake documents and extradited to Hungary last week. A total loss caused by the OGC has been totaled at €3.5m ($4m) for over 470 victims
The modus operandi of the fraud gang included posting fake ads for properties up for sale or rent – tricking the victim into sending deposit money and rent. There have also been revelations by the Europol that the OGC remotely hacked some victims’s PC and stole financial details and carried out transactions without their knowledge sometimes using Covid-19 as an excuse to install remote access softwares on these machines.
The OGC recruited money mules who would open bank accounts in Hungary to receive and transfer funds as well as carry out cryptocurrency transactions to help with money laundering and thereafter send the illegal proceeds to the Dominican Republic
Europol assessment has indicated that with the move towards cashless economies, a powerful incentive has been made for payment fraudsters and with the increase in the number of users and connections a new vulnerability is created thus opening new opportunities for OGCs and lone cyber-criminals alike.
Rental and real estate fraud reported to the FBI last year cost victims and estimated $213m off the back of around 13,600 cases. This therefore ranks it amongst on of the the top 10 earners for cyber-criminals.