In a significant victory against cybercrime, the National Crime Agency (NCA) has successfully dismantled a platform used by hundreds of criminals to defraud victims globally. Known as Russian Coms, the platform has been linked to financial losses estimated in the tens of millions, with an astounding 170,000 individuals in the UK alone believed to have fallen victim to the scam.
National Crime Agency Tackles Fraud Platform
Established in 2021, Russian Coms allowed criminals to masquerade as representatives from trusted institutions such as banks, telecommunications companies, and law enforcement agencies. By spoofing phone numbers, they could deceive victims into divulging personal details or transferring money. Between 2021 and 2024, users of Russian Coms made over 1.3 million calls to 500,000 unique UK phone numbers. Reports to Action Fraud indicate that victims lost an average of £9,400 each.
Russian Coms provided a suite of deceptive services to its users. Initially available as a handset, it later evolved into a web app marketed through social media platforms like Snapchat, Instagram, and Telegram. The service boasted features such as “unlimited minutes,” “hold music,” “encrypted phone calls,” “instant handset wipe,” international calling capabilities, voice changing services, and 24/7 support.
A typical scam involves fraudsters spoofing a bank’s number to gain the trust of a victim. They would then convince the victim that their account had been compromised and needed to be safeguarded by transferring money to another account. Additionally, scammers posed as reputable companies to steal funds for undelivered goods, gain full access to bank accounts, or collect physical debit and credit cards under false pretences.
Arrests and Ongoing Investigations
The NCA has arrested three individuals in connection with Russian Coms. Two men, aged 26 and 28, believed to be the platform’s developers and administrators, were apprehended in Newham, London, in March. A third suspect, a 28-year-old man also from Newham, thought to be a close affiliate and handset courier, was arrested on 12 April 2024. All three have been released on conditional bail.
The platform’s takedown followed months of intelligence gathering and investigative work. Law enforcement agencies in the UK and abroad, supported by Europol, will continue to pursue action against Russian Coms users in the coming months. This week, another user was arrested in Potters Bar by the Eastern Region Special Operations Unit.
Technological Sophistication of Russian Coms and Statements
Russian Coms demonstrated a high degree of technological sophistication. The handsets could only make spoofed calls and featured numerous fake applications to make them appear as everyday smartphones if seized by law enforcement. They also included several VPN apps to hide users’ IP addresses and a burner app to instantly wipe the phone. The handsets were sold on a six-month contract for between £1,200 and £1,400. The web app, marketed as a “flagship service,” provided full access for £350 per month, payable in cryptocurrency.
Adrian Searle, Director of the National Economic Crime Centre at the NCA, highlighted the evolving nature of cybercrime: “Criminals are increasingly using technology to carry out fraud and other crimes on an industrial scale, causing very real harm to victims in the UK and across the world. The NCA and our partners here in the UK and overseas are going after both the criminals and the technology they exploit.”
T/Assistant Commissioner Nik Adams from the City of London Police underscored the devastating impact of fraud: “Fraud is a devastating crime which can have a huge impact on victims, both financially and psychologically, and can hugely impact people’s trust in others and services they rely on.”
Lord Sir David Hanson, Minister of State at the Home Office with Responsibility for Fraud, praised the NCA’s efforts and reiterated the government’s commitment to combating fraud: “This action from the NCA is significant, shutting down an illegal platform used by hundreds of criminals and disrupting the flow of funds that their networks rely on to operate. It also sends a vital message to others committing fraud – law enforcement is monitoring you, you will be caught, and you will be dealt with using the full force of the law.”
A Stark Reminder For All Businesses About the Complexities of Fraud
This major case serves as a significant reminder of the importance of tackling fraud and closing down financial crime networks. Preventing fraud is a legal obligation for businesses, particularly those operating within the legal sector, and lawyers play a major role in bringing down criminal networks, given the identity checks and source of funds checks they must complete. Innovative technology is helping law firms complete these checks; at the forefront is Verify 365. Our award-winning DynamicID technology uses facial recognition, NFC scanning, and liveness technology to verify an individual’s identity.
The takedown of Russian Coms marks a critical step in the ongoing battle against cybercrime. The collaborative efforts of the NCA, law enforcement agencies, and international partners have dealt a significant blow to a sophisticated criminal enterprise, providing a measure of justice for thousands of victims. However, the fight against fraud continues, with ongoing investigations and a renewed commitment to protecting the public from such crimes.
