A global operation involving law enforcement from 40 countries, territories and regions has ended with the arrest of over 5,500 financial crime suspects and the seizure of more than $400 million in virtual assets and government-backed currencies.
The five-month Operation HAECHI V (July-November 2024) targeted seven types of cyber-enabled frauds: voice phishing, romance scams, online sextortion, investment fraud, illegal online gambling, business email compromise fraud and e-commerce fraud.
As part of the operation, Korean authorities, in tandem with authorities in Beijing, successfully dismantled a sprawling voice phishing syndicate responsible for financial losses totalling 1,511 billion KRW ($1.1 billion) and affecting over 1,900 victims.
The organisation’s sophisticated modus operandi included masquerading as law enforcement officials and using counterfeit identification. The operation led to the arrest of at least 27 members of the organized criminal group, with 19 individuals subsequently indicted.
INTERPOL also issued a Purple Notice during Operation HAECHI V to warn countries about an emerging cryptocurrency fraud practice involving stablecoin. Member countries were alerted to the ‘USDT Token Approval Scam’, allowing fraudsters to access and control victims’ cryptocurrency wallets.
The two-step approach first lures in victims using romance baiting techniques, instructing them to buy popular Tether stablecoins (USDT Tokens) via a legitimate platform. Once the scammers have gained their trust, the victims are provided with a phishing link claiming to allow them to set up their investment account.
In reality, by clicking, they authorize full access to the scammers, who can then transfer funds out of their wallet without the victim’s knowledge.
Now in its fifth year, HAECHI V built on previous successes, almost doubling the number of cases solved (8,309) and tripling the number of virtual asset service provider (VASP) accounts blocked (1,023) compared to 2023.