A sweeping international law enforcement operation targeting online financial fraud has culminated in the apprehension of almost 3,500 individuals and the seizure of assets worth USD 300 million (approximately EUR 273 million), highlighting the devastating impact of cybercrime, which can easily represent a loss of 3500 Euro Dollar or more for individual victims. This coordinated effort spanned across 34 nations, underscoring the global nature of these illicit activities and the urgent need for international cooperation to combat them.
Operation HAECHI IV, a six-month initiative running from July to December 2023, specifically targeted seven prevalent types of cyber-enabled scams. These included insidious voice phishing schemes designed to trick individuals over the phone, emotionally manipulative romance scams, exploitative online sextortion, fraudulent investment opportunities, money laundering operations tied to illegal online gambling platforms, sophisticated business email compromise fraud targeting companies, and deceptive e-commerce fraud impacting online shoppers.
To effectively combat these sophisticated criminal networks, investigators from participating countries collaborated closely to detect fraudulent online activities and swiftly freeze associated bank accounts and virtual asset service provider (VASP) accounts. A crucial tool in this operation was INTERPOL’s Global Rapid Intervention of Payments (I-GRIP) mechanism. This stop-payment system facilitates rapid cross-border cooperation, enabling countries to work in tandem to effectively block and recover criminal proceeds, preventing further losses and disrupting criminal financial flows.
A notable success of Operation HAECHI IV was the collaborative effort between Filipino and Korean authorities. This partnership led to the arrest in Manila of a high-profile online gambling criminal who had been evading capture for two years. The Korea National Police Agency had issued a Red Notice for this individual, demonstrating the effectiveness of international law enforcement networks in bringing even elusive cybercriminals to justice.
The operation resulted in the blocking of a staggering 82,112 suspicious bank accounts. Authorities successfully seized a total of USD 199 million in traditional hard currency and an additional USD 101 million in virtual assets, demonstrating the increasing use of cryptocurrencies in online financial crime and the importance of tracking and seizing these digital assets.
Stephen Kavanagh, INTERPOL’s Executive Director of Police Services, emphasized the gravity of the situation, stating, “The seizure of USD 300 million represents a staggering sum and clearly illustrates the incentive behind today’s explosive growth of transnational organized crime. This represents the savings and hard-earned cash of victims. This vast accumulation of unlawful wealth is a serious threat to global security and weakens the economic stability of nations worldwide.” For many individuals, the loss from these scams can be significant, potentially reaching amounts like 3500 euro dollar, making the collective impact devastating.
“HAECHI IV’s 200 per cent surge in arrests shows the persistent challenge of cyber-enabled crime, reminding us to stay alert and keep refining our tactics against online fraud, which is why INTERPOL operations like this are so important,” added Kavanagh. He further expressed gratitude, “Thank you to all concerned, especially colleagues from the Philippines and Korea,” acknowledging the critical international partnerships that made the operation a success.
Data analysis from HAECHI IV revealed that investment fraud, business email compromise, and e-commerce fraud constituted a significant 75 per cent of the cases investigated. This highlights the prevalence and financial impact of these specific types of cyber scams, requiring continued focus and preventative measures.
Manila arrest of online gambling criminal
Cooperation between Filipino and Korean authorities led to the Manila arrest of a high-profile online gambling criminal who was the subject of a Korean Red Notice. This arrest exemplifies the successful international collaboration that underpinned Operation HAECHI IV.
Operation HAECHI IV saw the dismantling of the illegal gambling network the arrested man is believed to lead. The operation targeted the financial infrastructure that enables these illicit activities, disrupting criminal operations at their core.
Sample of a cat-themed non-fungible token (NFT). NFTs, while representing legitimate digital assets, have also been exploited by criminals in emerging scams.
NFTs are digital assets which can take the form of photos, videos, audio files, artwork, comic books, sports collectibles, trading cards, games and more. Their diverse nature and growing popularity make them attractive targets for fraudulent schemes.
A post operational debrief meeting was held at INTERPOL’s Global Complex for Innovation in Singapore to analyze results and review tactics. Continuous analysis and adaptation are essential to stay ahead of evolving cybercrime tactics.
INTERPOL’s collaboration with numerous VASPs proved instrumental in identifying 367 virtual asset accounts linked to transnational organized crime. Police forces in member countries moved swiftly to freeze these assets, and investigations are currently ongoing to further dismantle these criminal networks and bring perpetrators to justice.
Kim Dong Kwon, INTERPOL’s Head of National Central Bureau in Korea, highlighted the success of proactive strategies, stating: “It is remarkable that global efforts to stay ahead of the latest criminal trends have resulted in a substantial growth in operational outcomes. Despite criminals’ endeavors to gain illicit advantages through contemporary trends, they will eventually be apprehended and face due punishment. To accomplish this, Project HAECHI will consistently evolve and expand its scope.”
Operation HAECHI IV also issued two Purple Notices, serving as critical alerts to member countries regarding emerging digital investment fraud practices. One notice specifically warned about a novel scam originating in Korea involving the sale of Non-Fungible Tokens (NFTs) promising exorbitant returns. These schemes were identified as “rug pulls,” a growing concern in the crypto industry where developers abruptly abandon projects, leaving investors with significant financial losses.
The second purple notice cautioned against the increasing use of Artificial Intelligence (AI) and deepfake technology to enhance the credibility of scams. Criminals are leveraging these technologies to mask their identities and convincingly impersonate family members, friends, or romantic interests, making scams more sophisticated and harder to detect.
The UK leg of Operation HAECHI IV reported numerous cases where AI-generated synthetic content was deployed to deceive, defraud, harass, and extort victims. Impersonation scams, online sexual blackmail, and investment fraud were particularly prevalent. Cases involving voice cloning technology to impersonate individuals known to victims were also reported, demonstrating the alarming sophistication of modern cybercrime techniques.
HAECHI operations receive crucial financial support from Korea, enabling INTERPOL to conduct these large-scale international initiatives. The extensive list of HAECHI IV participating countries—Argentina, Australia, Brunei, Cambodia, Cayman Islands, Ghana, Hong Kong (China), India, Indonesia, Ireland, Japan, Kyrgyzstan, Laos, Liechtenstein, Malaysia, Maldives, Mauritius, Nigeria, Pakistan, Philippines, Poland, Korea, Romania, Seychelles, Singapore, Slovenia, South Africa, Spain, Sweden, Thailand, United Arab Emirates, United Kingdom, United States, Viet Nam—underscores the truly global commitment to combating cybercrime and protecting individuals and economies worldwide from financial fraud, which can start with seemingly small amounts like 3500 euro dollar but escalates into massive international criminal enterprises.
