Post sponsored by NewzEngine.com

MIL OSI Translation. Region: Russian Federation –

Source: Central Bank of Russia – Central Bank of Russia (2) –

In 2023, the Bank of Russia identified 5,735 entities (companies, projects, individual entrepreneurs and others) with signs illegal activities, including signs of financial pyramids. This is 15.5% more than a year earlier, but the “lifespan” of such projects has become shorter and the “average bill” has decreased.

The Bank of Russia continued to improve the information space monitoring system, which is used to identify illegal activities in the financial market, including automated assessment of content published by illegal immigrants. This made it possible to more quickly identify illegal schemes.

Against the backdrop of the transition of consumers to a remote format for receiving financial services, increasing confidence in information from social media, the majority of financial pyramids, pseudo-brokers and even illegal lenders operated via the Internet. To “promote” fraudulent projects, the organizers used social networks and instant messengers.

The number of illegal participants in the financial market who use crypto-themes is growing. In 2022, every second pseudo-investment project attracted cryptocurrency. In 2023, almost all pyramid schemes and illegal brokers offered investments in internal tokens or accepted contributions in cryptocurrency.

Subjects with signs of illegal activity

2022 2023
Total 4,964 5 735
Illegal lenders 1,722 1,884
Financial pyramids 2,017 2,944
Illegal professional participants in the securities market 1 201 862
Other* 24 45

* Illegal operators of investment platforms, illegal participants in the insurance market.

Subjects with signs of a financial pyramid

2944

An entity with signs of a financial pyramid was identified by the Bank of Russia in 2023.

* Joint stock companies, individuals, individual entrepreneurs and others.

Basically, these are small pseudo-investment projects that are created and operate on the Internet. Information about them is distributed through social networks and the Telegram messenger. The organizers actively attract lifestyle bloggers with a large audience for advertising.

The most popular methods of transferring money to the pyramid remain foreign payment services and cryptocurrencies. More than 45% of the identified pyramids offered investors to use the systems of foreign payment service providers. Almost 1,500 fraudulent projects accepted contributions in cryptocurrency, which, among other things, helps the organizers and beneficiaries of the schemes maintain anonymity.

The Bank of Russia began to initiate measures that make it possible to simultaneously restrict access not only to domains, but also to all subdomains that are used by subjects of illegal activities. Fraudsters often created resources with the same content after blocking the main site. In 2023, the domains and subdomains of more than 1,500 financial pyramids that used a similar mechanism were blocked.

Subjects with signs of an illegal lender

1884

An entity with signs of activity as an illegal lender was identified by the Bank of Russia in 2023.

420

such organizations illegally used in their names words indicating the implementation of microfinance activities.

Illegal lenders in the first half of 2023

* Entities offering lending services at points of sale for which an address and sign/name have been established.

Almost 44% of illegal lenders promoted their services only online and did not have offices. They mostly used social media pages and groups, or popular classifieds platforms, without creating permanent websites.

In 2023, there was a downward trend in the number of organizations that provided loans secured by property. There were 9% fewer of them identified (in 2022 – 870 subjects, in 2023 – 792 subjects).

Subjects with signs of an illegal professional participant in the securities market

862

An entity with signs of an illegal professional participant in the securities market was identified by the Bank of Russia in 2023.

820 illegal forex dealers were identified, and 42 illegal brokers and managers.

Such companies most actively attract clients by allegedly offering the opportunity to participate in trading on foreign Forex platforms. Often, ranking sites are used for promotion, where legal participants in the financial market are added to the general list for ranking. But the most attractive position in fabricated ratings is given to illegal companies, and thus the choice of consumers is shaped in their favor. In 2023, 48 such sites were discovered.

Measures against illegal organizations and financial pyramids identified by the Bank of Russia

The Bank of Russia recommended that credit institutions apply measures of anti-money laundering legislation to organizations fromList of companies with identified signs of illegal activity in the financial market. This will shorten the lifespan of financial pyramids, make it more difficult for illegal financial service providers to collect funds, and reduce damage to citizens from illegal schemes.

The regulator sends information about identified illegal participants in the financial market and financial pyramids to suppress their activities to law enforcement agencies, the Federal Antimonopoly Service of Russia, and Roskomnadzor. In 2023, including based on the results of consideration of materials sent by the Bank of Russia (including previous periods), the following measures were taken:

more than 125 criminal cases have been initiated; more than 620 administrative cases have been initiated under various articles of the Code of Administrative Offenses of the Russian Federation (including about 460 cases under the article for the illegal implementation of professional activities in the provision of consumer loans); more than 1,300 other response measures have been taken; Access to more than 11.2 thousand resources on the Internet, which belonged to illegal participants in the financial market and financial pyramids, was limited.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI News (multilanguage service)