National Crime Agency shuts down global fraud platform
Hundreds of criminals utilised the platform, causing tens of millions in financial losses worldwide
Last updated 1st Aug 2024
The National Crime Agency (NCA) has revealed the shutdown of a platform used by hundreds of criminals to defraud victims across the globe.
Russian Coms, established in 2021, is believed to be responsible for financial losses amounting to tens of millions of pounds.
An estimated 170,000 people in the UK alone have fallen victim to this scheme.
The platform enabled criminals to mask their identity by appearing to call from pre-selected numbers, commonly those of financial institutions, telecommunications companies, and law enforcement agencies. This method allowed them to gain the trust of victims before stealing their money and personal information.
Between 2021 and 2024, over 1.3 million calls were made by Russian Coms users to 500,000 unique UK phone numbers. Reports to Action Fraud indicate that the average loss per victim exceeds £9,400.
Arrests made
The NCA has arrested three individuals, two of whom are believed to have been involved in the creation and development of the platform. They have been released on conditional bail. Joint action against users will be taken by law enforcement partners in the UK and overseas, supported by Europol, in the coming months.
How does it work?
Russian Coms was available both as a handset and, later, as a web app, marketed through social media platforms such as Snapchat, Instagram, and Telegram. Adverts for the service boasted features like “unlimited minutes,” “hold music,” “encrypted phone calls,” “instant handset wipe,” international calls, voice-changing services, and 24/7 support.
One typical scam involved fraudsters spoofing the number of a bank to gain a victim’s trust, then convincing them their account had been compromised. The victim would be persuaded to transfer their money to another account to safeguard their savings.
The fraudsters accessed victims’ money in various ways. They impersonated reputable companies to steal funds for undelivered goods, gained full access to bank accounts, and arranged for the collection of physical debit and credit cards from victims under the pretext of needing replacement.
Victims of all ages suffered losses, with calls made to individuals in 107 countries, including the USA, New Zealand, Norway, France, and the Bahamas.
The handset could only make spoofed calls and was loaded with fake applications to resemble a typical smartphone if seized by law enforcement. It also featured multiple VPN apps to hide the user’s IP address and a burn app that wiped the phone instantly. A six-month contract cost between £1,200 and £1,400.
The web app, marketed as a “flagship service,” provided full access to the Russian Coms web phone for £350 per month, payable in cryptocurrency.
Fraud accounts for approximately 40% of all crime against individuals in England and Wales, with over 80% believed to be technology-enabled.
Investigation
In March, after months of intelligence gathering and investigation, two men aged 26 and 28 were arrested in Newham, London, by NCA officers. They are believed to be the platform’s developers and administrators. The platform was taken down that month.
On 12 April 2024, a suspected close affiliate and handset courier, a 28-year-old man also from Newham, was arrested.
This week, another user was arrested in Potters Bar by the Eastern Region Special Operations Unit. Action will continue over the coming months.
Adrian Searle, Director of the National Economic Crime Centre within the NCA, said, “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.
“Whilst this use of technology, which can be called ‘crime as a service’, promises anonymity, unbeknown to the criminal users, the services also store the users’ data, so we can identify who they are and how they operate.
“Users of Russian Coms, and all those tempted to try out similar services, should know that these services cannot be trusted.”
Assistant Commissioner Nik Adams from the City of London Police stated, “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.
“It is absolutely imperative that everyone takes steps to protect themselves from fraud. If you receive a phone call out of the blue from your bank, financial provider or other official organisation, even if you think it is legitimate, hang up and redial the number on the back of your bank card. No official organisation will pressure you to make an immediate financial decision or put pressure on you to reveal your personal details.
“If you have been a victim of fraud, know that it is not your fault and it is never too late to get help. Reports of fraud should be made to your bank immediately and to Action Fraud as soon as possible, either online at actionfraud.police.uk or by calling 0300 123 2040. Charity Victim Support also provides free and confidential advice.”
Lord Sir David Hanson, Minister of State at the Home Office with Responsibility for Fraud, remarked, “Fraud is a crime that can devastate lives, and anyone can be affected.
“That’s why this action from the NCA is so 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.
“But this new government knows that more needs to be done to tackle fraud and we will continue to collaborate with law enforcement and industry to better protect the public and businesses from this appalling crime.
“I am grateful to the NCA and their partners, whose tireless dedication makes today’s news possible.”