Nearly 3,500 illegal entities detected by Bank of Russia in 2024 H1
Jul 29, 2024
Companies with signs of a financial pyramid account for around half of the total number of detected schemes. Illegal creditors make up about 30% thereof, with the rest being illegal forex dealers. Most of the fraudulent projects and illegal companies advertised their offers on social networks and Telegram.
Fraudsters often devise schemes that capitalize on sanctions issues. For example, they promise that they can allegedly offer an opportunity to trade in foreign assets or invest in foreign projects. For clients to pay for the services and participation in such projects, their masterminds suggest using cryptocurrencies or foreign payment platforms. In 2024 H1, 59% of the detected pyramid schemes had their clients pay them in cryptocurrencies. These instruments allow perpetrators to stay anonymous, which makes it impossible for the victims to provide any evidence of fraud later on.
The Bank of Russia advises Russians to be vigilant, not to trust overly tempting financial offers and to check the legality of companies on the regulator’s website. The Bank of Russia also publishes the List of entities with detected signs of illegal activities in the financial market.
In 2024 H1, the Bank of Russia initiated the blocking of access to more than 8,000 illegal internet resources with a potential audience of over 23 million users.
More details are available in the Bank of Russia’s analytical material.
Preview photo: mapush / Shutterstock / Fotodom