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The United Nations Office on Drugs and Crime (UNODC) recently released a comprehensive issue paper on organised fraud, shedding light on this increasingly sophisticated and pervasive form of criminal activity. The report underscores the urgent need for a coordinated global response to counter the diverse forms of organized fraud, which exploit both technological advancements and societal vulnerabilities. This article explores the key findings, typologies of fraud, and strategies for combatting this growing menace, as outlined in the UNODC report.
Fraud, at its core, involves deliberate deception for financial or material gain. When orchestrated by organised criminal groups (OCGs), fraud operations can become vast, well-coordinated, and difficult to dismantle. According to the report, fraud spans numerous social, commercial, and technological environments, making it one of the most versatile crimes globally.
One major challenge is the pervasive underreporting of fraud. Victims often refrain from coming forward due to feelings of shame or fear of reputational damage, especially in the business sector. This lack of data hampers law enforcement's ability to assess the true scale of the problem and develop effective countermeasures.
The UNODC categorises fraud into several types based on the narratives and tactics used to deceive victims. This typology provides a victim-centered approach to understanding the crime:
Organised criminal groups involved in fraud operate in diverse ways, leveraging technology and human networks to maximise their reach and impact. The UNODC report identifies several defining characteristics:
Technical Support Scams Fraudsters create websites mimicking legitimate tech support services. Victims are tricked into calling a helpline, where operators persuade them to pay for unnecessary services. The operations are often based in call centers employing hundreds of workers.
Example: A scam involving multiple call centers in India targeted victims in the U.S. and Europe. Victims were charged exorbitant fees for fake virus removal services, netting the group over $30 million.
Fake Online Shops These scams involve the creation of e-commerce platforms offering non-existent goods. Payments are collected through networks of money mules, making financial tracing difficult.
Example: A fraudulent network of online stores advertised high-demand items such as gaming consoles. Over 10,000 customers lost their money, with the funds funnelled through offshore accounts.
Auction Fraud Offenders list fake products on popular auction sites, convincing victims to pay through non-refundable methods like prepaid cards.
Example: A group operating from Romania tricked victims into buying non-existent electronics on auction sites. They directed payments to a network of prepaid debit cards, making the fraud almost untraceable.
Several factors amplify the scale and effectiveness of organised fraud:
The UNODC report highlights several systemic challenges:
The UNODC outlines a comprehensive strategy based on the "Four Ps":
Organised fraud is a dynamic and pervasive threat, demanding an equally dynamic response. The UNODC report emphasises the importance of international cooperation, technological innovation, and public education in tackling this global issue. By adopting a unified and proactive approach, stakeholders can mitigate the far-reaching impacts of organised fraud, protecting individuals and institutions from its devastating effects.
Addressing organised fraud is not just a law enforcement challenge but a societal imperative, requiring vigilance, collaboration, and commitment across all sectors.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Boris Bialek Vice President and Field CTO, Industry Solutions at MongoDB
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Kathiravan Rajendran Associate Director of Marketing Operations at Macro Global
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Barley Laing UK Managing Director at Melissa
Scott Dawson CEO at DECTA
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