A sweeping international police operation, dubbed HAECHI IV, has concluded with a resounding success, netting nearly 3,500 arrests and seizing a staggering USD 300 million – approximately equivalent to EUR 273 million. This six-month endeavor, spanning 34 countries, targeted the insidious world of online financial crime, sending a clear message to cybercriminals worldwide. To put the scale into perspective, while the total haul is massive, even smaller amounts like 3500 Euro In Usd represent real money stolen from victims, highlighting the pervasive nature of these scams.
Operation HAECHI IV, active from July to December 2023, zeroed in on seven prevalent types of cyber-enabled fraud. These ranged from the deceptive tactics of voice phishing and romance scams to the exploitative nature of online sextortion. Investment fraud, a particularly damaging scheme, was also a key focus, alongside the complex web of money laundering linked to illegal online gambling, business email compromise fraud, and the increasingly common e-commerce fraud.
Manila arrest of a high-profile online gambling criminal following cooperation between Filipino and Korean authorities
Investigators from across the globe collaborated to identify and disrupt online fraud networks. A crucial tool in their arsenal was INTERPOL’s Global Rapid Intervention of Payments (I-GRIP). This innovative stop-payment mechanism facilitated rapid cooperation between countries, enabling them to freeze bank accounts and virtual asset service provider (VASP) accounts linked to criminal activities, effectively blocking the flow of illicit funds.
One notable success story stemming from this international collaboration was the arrest in Manila of a high-profile online gambling criminal. This individual, apprehended thanks to the joint efforts of Filipino and Korean authorities, had been the subject of a two-year manhunt by Korea’s National Police Agency, demonstrating the power of coordinated global law enforcement.
The operation’s impact is clearly visible in the numbers. Authorities successfully blocked a staggering 82,112 suspicious bank accounts. The seizures amounted to USD 199 million in traditional currencies and an additional USD 101 million in virtual assets, bringing the total to the impressive USD 300 million figure.
Stephen Kavanagh, INTERPOL’s Executive Director of Police Services, emphasized the significance of these seizures: “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.”
Operation HAECHI IV dismantling an illegal gambling network
The sheer scale of Operation HAECHI IV, with a 200 per cent increase in arrests compared to previous iterations, underscores the persistent and evolving challenge of cyber-enabled crime. It serves as a stark reminder of the need for constant vigilance and the refinement of tactics to combat online fraud. INTERPOL operations like HAECHI IV are vital in this ongoing fight, fostering international cooperation and providing the framework for effective action.
Data analysis from HAECHI IV reveals that investment fraud, business email compromise, and e-commerce fraud collectively accounted for a significant 75 per cent of the investigated cases. This highlights the prevalence of these particular types of scams and the need for targeted preventative measures and public awareness campaigns.
Working closely with numerous VASPs, INTERPOL played a crucial role in identifying 367 virtual asset accounts connected to transnational organized crime. Police forces in member countries swiftly froze these assets, and investigations are currently ongoing, demonstrating the proactive approach taken to disrupt criminal networks operating in the digital space.
Kim Dong Kwon, INTERPOL’s Head of National Central Bureau in Korea, highlighted the impact of global collaboration: “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, acting as early warnings to member countries about emerging digital investment fraud practices. One notice specifically alerted to a new scam originating in Korea involving the sale of Non-Fungible Tokens (NFTs) promising unrealistic returns. These schemes often turn out to be “rug pulls,” a growing concern in the crypto world where developers abruptly abandon projects, leaving investors with significant losses.
NFTs as digital assets
The second Purple Notice addressed the alarming use of AI and deepfake technology to enhance the credibility of scams. Criminals are leveraging these technologies to mask their identities and impersonate family members, friends, or romantic interests, making their schemes more convincing and harder to detect. The UK leg of Operation HAECHI IV reported multiple cases involving AI-generated synthetic content used for deception, fraud, harassment, and extortion, particularly in impersonation scams, online sexual blackmail, and investment fraud. Voice cloning technology was also used to impersonate individuals known to victims, further blurring the lines of reality and making these scams even more insidious.
Post operational debrief meeting at INTERPOL’s Global Complex for Innovation in Singapore
The success of HAECHI operations is underpinned by financial support from Korea. The extensive list of 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, and Viet Nam – demonstrates the truly global commitment to combating cyber financial crime. As operations like HAECHI IV continue to evolve, international cooperation remains the cornerstone of effectively tackling the ever-changing landscape of online criminal activity, protecting individuals and economies from the devastating impact of cyber fraud, whether it’s millions or even just the equivalent of 3500 euro in usd stolen from unsuspecting victims.
