Digital Scams Surge: 23M Victims, 1,723 Pyramids

In the first half of 2024, the Bank of Russia reported a significant rise in illegal activities in the financial market, with 3495 entities displaying signs of wrongdoing. This marks a 43% increase compared to the same period in the previous year. However, the rate of growth has slowed down, showing only a 6% increase from the second half of 2023.

Out of the identified entities, 1723 were identified as running financial pyramids, representing a 51% spike from the first half of 2023. The majority of these schemes, about 99%, operated online, often masquerading as economic games with investment elements. A significant percentage, over 14%, utilized economic game formats to attract participants, leveraging popular media trends like mememakes and clickers. Additionally, 59% of these entities accepted contributions in cryptocurrencies, while 36% used foreign payment services.

Illegal creditors numbered 1021, with only 42% offering services through physical offices while the rest operated online using social media platforms and advertisements. Many of these illicit creditors posed as pawnshops or commission stores, utilizing schemes like “Five Leasing” to create complex chains of companies and confuse customers.

Furthermore, 724 cases involving illegal professional participants in the securities market were identified, representing a 1.7-fold increase from the first half of 2023. This surge is attributed to sanctions limiting the trade of foreign assets and currencies.

During the first half of 2024, more than 290 administrative cases were opened, and over 8,000 internet resources reaching an audience of over 23 million people were blocked by authorities.