INTERPOL Arrests 5,500 in Global Financial Crime Crackdown; $400M in Virtual Assets Seized

INTERPOL has arrested more than 5,500 suspects in financial crimes. Authorities have seized more than $400 million worth of virtual assets. The five-month global operation also brought to light a troubling pig butchering plot employing stablecoins. It is a fraud tactic that criminal actors are increasingly using globally.

Operation HAECHI V

HAECHI V was an international operation that targeted a variety of cyber frauds. It includes voice phishing, investment fraud, online sextortion, and pig slaughtering schemes.

According to INTERPOL, law enforcement in Beijing and Korea collaborated from July to November of this year. It is to shut down a massive voice phishing ring that caused victim losses of over $1 billion. Using a fake identity, the syndicate pretended to be police enforcement.

INTERPOL Issues Alert on Stablecoin Fraud

According to INTERPOL Secretary General Valdecy Urquiza, the consequences of cyber-enabled crime can be devastating. People are losing their life savings, businesses are being destroyed, and trust in digital and financial systems is being undermined.

During the operation, INTERPOL issued a Purple Notice alerting nations to a new stablecoin scam. When the organization suspects illegal conduct but there is insufficient proof for a Red Notice—which typically includes an arrest warrant—it issues Purple Notices.

The CNN quoted INTERPOL Secretary General Valdecy Urquiza saying.“The effects of cyber-enabled crime can be devastating – people losing their life savings, businesses crippled, and trust in digital and financial systems undermined,”

The ‘USDT Token Approval Scam,’ which gives criminals access to victims’ cryptocurrency wallets, alerted the United States and the United Kingdom, among other member nations.

In this concerning fraud, scammers first use romance-baiting tactics before telling victims to purchase Tether stablecoins. The victims receive a link to create their investment account once they have paid for the currency and established a trustworthy relationship with the con artist. The link, however, directs users to a phishing website, where con artists have complete access to and command over the victim’s money.

Increase in Pig Butchering Scams

In 2023, romance scam victims, sometimes known as ‘pig butchering,’ are expected to lose more than $4.4 billion. Con artists from all over the world target people using the worldwide accessibility of social media and messaging platforms, which is a blameworthy cause for the increase in frauds.

These schemes’ cross-border nature has also made it possible for con artists to identify victims who are struggling financially. These individuals are typically more vulnerable to scams that promise rapid financial gains.