NCA shuts down major fraud platform
The National Crime Agency (NCA) have shut down a platform used by hundreds of criminals to defraud victims across the UK and the world.
Image courtesy NCA
Russian Coms, established in 2021, is thought to be behind financial losses in the tens of millions. An estimated 170,000 people across the UK are believed to be victims.
The platform allowed criminals to hide their identity by appearing to call from pre-selected numbers, most commonly of financial institutions, telecommunications companies and law enforcement agencies. This enabled them to gain the trust of victims before stealing their money and personal details.
Between 2021 and 2024, over 1.3 million calls were made by Russian Coms users to 500,000 unique UK phone numbers. Of those who reported to Action Fraud, the average loss is over £9,400.
Three individuals have been arrested by the NCA, two of whom are believed to have been involved in the creation and development of the platform. They have been released on conditional bail. Law enforcement partners in the UK and overseas, supported by Europol, will take joint action against users over the coming months.
Russian Coms was available as a handset and, latterly, as a web app, marketed through Snapchat, Instagram and Telegram. According to adverts shared across social media, the service included 'unlimited minutes', 'hold music', 'encrypted phone calls', 'instant handset wipe', international calls, voice changing services and 24/7 support.
An example of a typical scam involved offenders spoofing the number of a bank to gain the trust of a victim, before convincing them that their account had been subject to fraudulent activity. They would then be persuaded to transfer their money to another account in order to safeguard their savings.
The fraudsters were able to access victims’ money in a number of ways. They impersonated reputable companies and stole funds for goods which were never delivered, gained full access to bank accounts and arranged for the collection of physical debit and credit cards from victims on the pretence that they needed replacing.
Victims of all ages suffered losses, and calls were made to individuals in 107 different countries around the world, including the USA, New Zealand, Norway, France and the Bahamas.
The handset could only be used to make spoofed calls. It was loaded with a number of fake applications that had no functionality, to make it look like an everyday smartphone if seized by law enforcement. This was in addition to several VPN apps, allowing the user to hide their IP address and a burn app that instantly wiped the phone after being activated. A six-month contract cost between £1,200 and £1,400, depending on collection and delivery.
The web app was marketed as a 'flagship service', allowing full access to the Russian Coms web phone for £350 per month, to be paid using cryptocurrency.
In March, following months of intelligence gathering and painstaking investigative work, two men aged 26 and 28 were arrested in Newham, London, by NCA officers. They are believed to be the platform’s developers and administrators. That month, the platform was taken down.
On 12th April 2024, a suspected close affiliate and handset courier, a 28-year-old man also from Newham, was arrested.
This week, a further user was arrested in Potters Bar by the Eastern Region Special Operations Unit. Action will continue over the coming months.
Adrian Searle, Director of the National Economic Crime Centre within the National Crime Agency, said: “Criminals are increasingly using technology to carry out fraud and other crimes on an industrial scale, causing very real harm to victims in the UK and across the world.
“The NCA and our partners here in the UK and overseas are going after both the criminals and the technology they exploit.
“Whilst this use of technology, which can be called ‘crime as a service’, promises anonymity, unbeknown to the criminal users, the services also store the users’ data, so we can identify who they are and how they operate.
“Users of Russian Coms, and all those tempted to try out similar services, should know that these services cannot be trusted.”
Fraud accounts for approximately 40% of all crime against individuals in England and Wales, and over 80% of it is believed to be technology-enabled.
T/Assistant Commission Nik Adams, from the City of London Police, said: “Fraud is a devastating crime which can have a huge impact on victims, both financially and psychologically, and can hugely impact people’s trust in others and services they rely on.
“It is absolutely imperative that everyone takes steps to protect themselves from fraud. If you receive a phone call out of the blue from your bank, financial provider or other official organisation, even if you think it is legitimate, hang up and redial the number on the back of your bank card. No official organisation will pressure you to make an immediate financial decision or put pressure on you to reveal your personal details.
“If you have been a victim of fraud, know that it is not your fault and it is never too late to get help. Reports of fraud should be made to your bank immediately and to Action Fraud as soon as possible, either online at actionfraud.police.uk or by calling 0300 123 2040. Charity Victim Support also provided free and confidential advice.”
Lord Sir David Hanson, Minister of State at the Home Office with Responsibility for Fraud’, said: “Fraud is a crime that can devastate lives and anyone can be affected.
“That’s why this action from the NCA is so significant, shutting down an illegal platform used by hundreds of criminals and disrupting the flow of funds that their networks rely on to operate.
“It also sends a vital message to others committing fraud – law enforcement is monitoring you, you will be caught and you will be dealt with using the full force of the law.
“But this new government knows that more needs to be done to tackle fraud and we will continue to collaborate with law enforcement and industry to better protect the public and businesses from this appalling crime.
“I am grateful to the NCA, and their partners, whose tireless dedication makes today’s news possible.”