Latvian Authorities Detain Over 200 'Money Mules' in International Fraud Bust

International Operation Uncovers Extensive Fraud Network

Latvian law enforcement agencies have announced the detention of over 200 Latvian citizens identified as 'money mules' as part of a major international investigation into an organized fraud network. The operation, conducted in collaboration with Ukrainian law enforcement agencies, has successfully disrupted a sophisticated scheme that caused financial losses exceeding €1.6 million to a foreign payment institution.

'Refund Fraud' and Cryptocurrency Laundering

The criminal network primarily utilized a method known as 'refund fraud.' This scheme involved submitting unjustified requests for refunds for goods or services on online trading platforms, often using deliberately misleading information or violating established return procedures. To obscure the origins of the illicit funds and complicate traceability, the fraudsters engaged in structured transactions on cryptocurrency platforms, integrating the criminally obtained money into the digital asset ecosystem.

Recruitment and Scope of the Network

The investigation revealed that the network comprised nearly 300 individuals, including organizers, recruiters, and those responsible for executing financial operations. Among these, 213 were Latvian citizens. A significant number of the recruited 'money mules' were young individuals, predominantly between the ages of 18 and 20, who were often lured through social media platforms. In addition to Latvians, the network also involved individuals from other nationalities, including Ukrainians, Belarusians, and Lithuanians.

Legal Actions and Seizures

In Latvia, criminal proceedings have been initiated for the legalization of criminally obtained funds, illegal use of financial instruments or means of payment, and the acquisition, transfer, or dissemination of data enabling such illegal activities. Concurrently, the Ukrainian National Police has launched its own investigation into large-scale fraud committed by an organized group. During coordinated searches, law enforcement seized various items, including:

• Information technology devices
• Communication tools
• Data pertaining to financial scheme planning
• Confidential communications from encrypted applications

These seizures are expected to provide further insights into the network's operations and facilitate ongoing legal proceedings.