213 Latvians, mostly teenagers, recruited for €1.6 million fraud scheme, Ukraine-Latvia investigation reveals

Ukraine's National Police investigators and law enforcement agencies in Latvia have identified nearly 300 individuals involved in an international financial criminal network. It is engaged in cybercrimes and money laundering, according to the Prosecutor General's Office.

€1.6 million in losses due to a refund fraud scheme

The network members employed a refund fraud scheme that involved unjustified obtaining or demanding refunds for goods or services on online platforms by submitting false information and violating return procedures.

As a result, a foreign payment institution suffered financial losses exceeding €1.6 million.

Cryptocurrency and “money mules” to hide illegal funds

To complicate the tracking of money flow, network participants used structured financial transactions, including those facilitated through cryptocurrency platforms. This allowed them to integrate illegally obtained funds into the digital asset ecosystem and conceal their origin.

A key element of the scheme was the involvement of individuals, known as "drops", who provided their bank accounts or carried out financial transactions to move and mask funds.

Some 213 Latvian citizens are involved, mostly aged 18–20

The investigation has identified nearly 300 people linked to the scheme, including organizers, recruiters, and financial operation executors. 213 are Latvian citizens, mostly young people, who may have been recruited via social networks.

During a coordinated operation, technical devices and communication tools containing information about financial scheme planning, as well as encrypted messenger communications, were seized.

“Money mules” are part of the organized scheme

Authorities stressed that individuals acting as money mules play a crucial role in the functioning of international financial networks.

They urged people not to share bank cards, PINs, or account access credentials with third parties, to avoid offers of easy money without official employment, and to report any recruitment attempts to law enforcement immediately.

In Ukraine, the Main Investigation Department of the National Police is conducting the investigation into fraud involving computer technology, with operational support from the Cyber Police Department.

In Latvia, criminal proceedings are underway concerning the legalization of criminally obtained funds, illegal use of financial instruments and payment means, and illegal transfer and dissemination of data enabling such crimes.