In a massive international operation spanning 40 countries, over 5,500 individuals have been arrested for their involvement in financial crimes. The operation, known as HAECHI V, also resulted in the seizure of more than $400 million in virtual assets and government-backed currencies.
Over the course of five months, from July to November 2024, Operation HAECHI V targeted seven different types of cyber-enabled frauds. These included voice phishing, romance scams, online sextortion, investment fraud, illegal online gambling, BEC fraud, and e-commerce fraud. The operation aimed to crack down on these illicit activities and bring those responsible to justice.
One of the significant achievements of Operation HAECHI V was the dismantling of a large voice phishing syndicate by Korean and Beijing authorities. This criminal organization was responsible for causing financial losses totaling $1.1 billion and impacting over 1,900 victims. The syndicate operated by impersonating law enforcement officials and using counterfeit identification to deceive their victims. As a result of the operation, 27 members of the syndicate were arrested, with 19 individuals later indicted.
While the arrest of over 5,500 individuals is a significant step in combating financial crimes, experts believe that these arrests mainly targeted lower-level operators involved in call center-style operations. Toby Lewis, Global Head of Threat Analysis at Darktrace, pointed out that these groups focus on targeting a high volume of victims for smaller payouts, rather than engaging in larger ransomware schemes that yield higher profits. These operations often steal thousands of dollars at a time, which can accumulate over time.
Furthermore, INTERPOL issued a Purple Notice during Operation HAECHI V to warn countries about a new cryptocurrency fraud tactic known as the “USDT Token Approval Scam.” This scam involves fraudsters luring victims in with romance baiting techniques, prompting them to purchase popular Tether stablecoins (USDT Tokens) through a legitimate platform. Once trust is established, the scammers provide victims with a phishing link that allows them to purportedly set up their investment accounts. By clicking on the link, victims unknowingly grant scammers full access to their wallets, enabling the fraudulent transfer of funds without their knowledge.
Overall, Operation HAECHI V represents a significant effort by law enforcement agencies worldwide to combat financial crimes and protect individuals from falling victim to cyber-enabled fraud. The successful coordination among participating countries led to a substantial number of arrests and the confiscation of a substantial amount of illicit assets, sending a strong message to those involved in such criminal activities. The operation highlights the importance of international cooperation in tackling global cybercrime and underlines the ongoing efforts to safeguard financial systems and individuals from fraudulent schemes.