Significant Increase in Computer Fraud Cases in Armenia

The number of fraud cases in Armenia has risen by 493 or 24.9% (from 1,979 in 2022 to 2,472 in 2023), while cases of computer fraud have increased by 169 or 36.7% (from 461 in 2022 to 630 in 2023). This information comes from the Prosecutor General's report on activities for 2023.

The Prosecutor General's Office attributes the rise in fraud cases involving personal property theft to the development of information technology. The annual report highlights several common mechanisms of fraud related to personal property theft.

In one scheme, criminals convince victims to invest in trading platforms like "Forex" and "Binance." The victims transfer money and are led to believe they are participating in stock market transactions. As a result, their accounts appear to grow rapidly with alleged profits. However, when the victims attempt to withdraw these funds, they are told they must make an additional investment based on a percentage of the total funds in their accounts before they can cash out. Once the further investment is made, the money is stolen.

Criminals also create fake pages on social media platforms like Facebook under names such as "Natixis," "NATIXIS GROUP," and "CaixaBank" offering fictitious "accessible loan terms" and similar advertisements. Some users on these platforms contact these pages using phone numbers listed with the hope of obtaining loans. During correspondence, the fraudster asks the victims to make monetary transfers through "Ria" and "MoneyGram" under the pretext of covering notary, insurance, and other costs associated with loan provision. After receiving the funds, the loans are never granted, and the money is stolen.

Additionally, fraudsters contact individuals who have listed items for sale on the product sales website "List.am" using phone numbers available through the WhatsApp app. They pose as buyers or clients requesting services, offering to pay in advance through online money transfers while arranging for delivery of the products through services such as HayPost or Surhank. Victims provide their bank card details, including the front and back, which the criminals use to steal funds from their accounts.

The Prosecutor General's Office notes that the rise in computer fraud cases is linked to the advancement of computer technologies and software, as well as the introduction of innovations in financial service provisions, while simultaneously indicating existing vulnerabilities in the software supporting these services.

The increase in these types of crimes is also related to the inclusion of online money transfer options in banking transactions, although banking oversight mechanisms have not been adequately enhanced. Given the significant financial harm caused to individuals and legal entities by computer fraud, as well as in some cases to state and local government bodies, measures are being taken by the Prosecutor's Office to inform the public about the mechanisms of these crimes through various methods, including media outreach. Furthermore, the Prosecutor's Office has notified relevant authorities about the need to improve banking oversight mechanisms and electronic payment systems.