Concerning Rise in Financial Scams with Crypto Elements, Reveals Bank of Russia
The Bank of Russia has released a report highlighting a significant increase in financial scams involving cryptocurrencies. According to the report, the number of entities engaged in illegal activities, including financial pyramids, rose by 15.5% in 2023, reaching a total of 5,735 cases. These scams primarily operate as small pseudo-investment projects conducted online and are amplified through social networks and messaging app Telegram. The report also reveals that foreign payment services and cryptocurrencies are the most popular methods for transferring funds to these illegal schemes.
Crackdown on Illegal Activities
The Bank of Russia is taking measures to address the existence of these illegal activities. It has restricted access to domains and subdomains used by entities engaged in illegal financial activities. The regulator has also observed a decline in organizations providing property-secured loans and identified illegal forex dealers and brokers. To counter these activities, the Bank of Russia recommends that credit institutions apply anti-money laundering legislation to entities involved in illegal financial market activities.
Enforcement Efforts
The Bank of Russia shares information about identified illegal participants and financial pyramids with law enforcement agencies, the Federal Antimonopoly Service of Russia (FAS Russia), and the Federal Service for Supervision of Communications, Information Technology, and Mass Media (Roskomnadzor). As a result of its actions, over 125 criminal cases and more than 620 administrative cases have been opened, and access to over 11,200 online resources belonging to illegal participants and financial pyramids has been restricted.
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