INTERPOL Exposes $400M Financial Crime Ring, Highlights New 'USDT Token Approval Scam'

INTERPOL has unveiled the results of Operation HAECHI V, a five-month global initiative that led to the arrest of over 5,500 individuals involved in financial crimes and the seizure of more than $400 million in virtual assets. This operation has brought to light a new scam involving stablecoins, particularly the USDT Token Approval Scam, which exploits victims through emotional manipulation and phishing techniques.

Key Takeaways

• Operation HAECHI V resulted in over 5,500 arrests and the seizure of $400 million in assets.
• The operation targeted various cyber frauds, including voice phishing and romance scams.
• INTERPOL issued a Purple Notice regarding the emerging USDT Token Approval Scam.

Overview Of Operation HAECHI V

Operation HAECHI V, conducted from July to November 2024, was a coordinated effort involving law enforcement agencies from 40 countries. The operation focused on seven types of cyber-enabled fraud:

1. Voice Phishing
2. Romance Scams
3. Online Sextortion
4. Investment Fraud
5. Illegal Online Gambling
6. Business Email Compromise (BEC)
7. E-commerce Fraud

The operation successfully dismantled a significant voice phishing syndicate that was responsible for over $1.1 billion in losses to more than 1,900 victims. This syndicate operated by impersonating law enforcement officials and using counterfeit identification to deceive victims.

The Rise Of Stablecoin Scams

As part of the operation, INTERPOL highlighted a concerning trend in financial crime involving stablecoins. The organization issued a Purple Notice to alert member countries about the USDT Token Approval Scam. This scam typically follows a two-step process:

1. Romance Baiting: Scammers build a relationship with victims, often using emotional manipulation.
2. Phishing Link: Once trust is established, victims are instructed to purchase Tether (USDT) and are then sent a link to set up an investment account. This link leads to a phishing site that grants scammers access to the victim's cryptocurrency wallet.

Toby Lewis, global head of threat analysis at Darktrace, emphasized that these scams combine emotional manipulation with the complexities of cryptocurrency, making them particularly effective.

The Impact Of Cybercrime

The effects of cyber-enabled crime can be devastating. Victims often lose their life savings, and businesses can suffer significant financial damage. The rise of scams like pig butchering, which cost victims an estimated $4.4 billion in 2023, highlights the urgent need for international cooperation in combating cybercrime.

Conclusion

The success of Operation HAECHI V underscores the importance of global collaboration in tackling cybercrime. INTERPOL Secretary General Valdecy Urquiza stated that the borderless nature of cybercrime necessitates international police cooperation. The operation's results demonstrate what can be achieved when countries unite to combat these threats, making both the real and digital worlds safer for everyone.

Sources

• INTERPOL Exposes $400M Financial Crime Ring, USDT Token, CCN.com.
• $400M seized, 5,500 arrested in global operation targeting cyber fraud - Help Net Security, Help Net Security.
• Thousands more cyber scammers nabbed by Interpol operation • The Register, The Register.