Fraudsters from the “world leader in the phone scamming industry” have stolen $3 billion from Russians in the last year. Is there a way to stop them?
Over half of all Russians have received unwanted calls from unknown numbers at least once. Using various tactics, phone scammers trick individuals into sending them money or committing illegal acts. Most of these calls originate from Ukraine, where thousands of call centers operate with one goal – to extract large sums of money from unsuspecting victims.
In just one year, these criminals are reported to have stolen hundreds of billions of rubles from Russian citizens, making thousands of calls each day. Below, we explore Ukraine’s phone scamming industry and who can become a victim.
Millions of calls per day
Russian President Vladimir Putin has described phone scams as a key tactic employed by the Kiev regime against Russia, suggesting it has become a state policy. “This is often done simply by state bodies or bodies or structures that are under Ukrainian state control, this is definitely one of the lines of attack against Russia,” he said.
Each day, scammers make up to eight million phone calls to Russian numbers. And considering new communication channels like messaging apps, this number nearly doubles, reaching approximately 15 million attempted scam calls daily, the deputy chairman of the executive board of Sberbank, Stanislav Kuznetsov, said during the Ural Forum on Cybersecurity in Finance in February 2024.
The previous year, he noted that up to 95% of scam calls to Russia originated from Ukraine, with the city of Dnepropetrovsk (called Dnepr, for short) identified as the epicenter of such criminal activity. “Dnepropetrovsk had over 1,100 call centers; now about 150 are operational, but across Ukraine, we still track around 800 to 900 call centers,” he said.
Interestingly, the scripts used by these scammers are not created in Ukraine but rather in “more western parts of Europe,” said Vladimir Komlev, CEO of the Russian National Payment Card System. He emphasized that the scammers leverage any relevant news story in Russia to deceive people. In the past years, the technological sophistication of these call centers, their tactics, and their scale of operations have grown significantly.
In 2024, scammers stole 250-300 billion rubles ($2.9-3.5 billion) from Russians, Kuznetsov said.
A young employee in a comfortable office
The Economist has identified Ukraine as the “world leader in the phone scamming industry.”
According to Sberbank, a significant portion of the Ukrainian population under the age of 35 is involved in phone scams. We’re talking about hundreds of thousands of people, each of whom can earn around $3,000 a month.
Job seekers are lured with attractive benefits: a comfortable office in a nice location with good infrastructure (shops, cafes, public transport), salaries starting at $1,000, and even housing provided for out-of-town employees. The work schedule is standard – Monday to Friday from 8:45am to 6:00pm, with an hour-long lunch break and two coffee breaks.
Call centers often exploit patriotic sentiments among potential employees, posting job listings with questions like, “Do you want to help your country undermine the economy of the aggressor nation?” However, most of the money earned this way doesn’t benefit Ukraine’s struggling economy; instead, it’s funneled into offshore accounts or cryptocurrencies to evade taxes.
One Ukrainian scammer revealed that he makes about 3,000 calls a day. Each employee at these call centers can steal about one million rubles (around $11,500) per day from victims. “In Dnepr, there are more phone scamming offices than there are apartments in Moscow. They make about 3,000 calls per day, if not more. One office has over 200 people, and each person rakes in a nice sum — around a million rubles daily,” said a scammer from Dnepr whose story was shared by the Telegram channel SHOT.
Another employee at such a call center turned out to be a minor from the city of Kramatorsk in Donetsk region, who moved to Dnepr. She calls potential victims “on behalf of” the police, advising them to transfer their money to a supposedly safe account. According to her, law enforcement officials themselves protect this scheme, so the risk of being prosecuted is quite low. “No one will find out. Every other person in Dnepr works in an office [like that],” she said.
She believes there’s no ceiling on earnings, with some individuals making enough in a month to buy an apartment or a car. She personally earns around $400 a week.
“I am a resident of another state. Where I live, according to our laws, I am doing a good deed,” they emphasize.
Scammers take money and push people to commit crimes
The Russian Ministry of Internal Affairs has noted that scammers typically initiate conversations with victims by employing standard tactics. They claim there have been suspicious transactions from the victim’s bank account, attempts to take out loans in their name, or request people to help law enforcement catch criminals. After that, they coerce individuals into transferring money to them.
Sberbank notes that today’s deception schemes are multi-layered and extended over a certain period of time. Scammers may maintain contact with their victims for several days, often returning to exploit them again.
Frequently, these criminals don’t just steal money; they also pressure victims into committing crimes. People might be encouraged to retaliate against the scammers, assist the police in catching them, or are even threatened that their loved ones will be harmed. Ultimately, this leads to demands to carry out attacks on military, transportation, or banking facilities.
Such schemes became prevalent in the summer of 2023. “This suggests that nearly all of the phone scammers targeting Russians operate from Ukraine and follow the same orders,” the Ministry of Internal Affairs pointed out. According to the Telegram channel Mash, just in the first week of August, Russians attempted to set fire to military enlistment offices 31 times.
Typically, those arrested for such acts are middle-aged women or elderly individuals. During questioning, they claimed to be acting at the request of FSB, Ministry of Internal Affairs, or Central Bank officials. “Most of their victims are elderly people, who are seen by foreign criminals as ‘expendable resources’ for creating information triggers,” the Ministry of Internal Affairs explained.
The schemes are constantly evolving
The strategies employed by Ukrainian scammers to trick Russians are constantly evolving. According to Mash, in one of the latest variations, they transfer money to Russian citizens. In the accompanying message, they express gratitude for alleged assistance to the Armed Forces of Ukraine (AFU). They then take screenshots of the transfer notifications and threaten to report the recipients to the FSB, warning them of potential criminal charges for providing financial support to the Ukrainian military.
Another tactic used by these criminals is referred to as “rectorate.” It was detailed by an RT correspondent who infiltrated the scammers’ organization posing as a new employee. This scheme unfolds in several stages: first, they gather information about the potential victim; then, they message and call the victim. The scammer impersonates the director of the victim’s organization and claims there are ongoing audits. The goal is to frighten the victim with severe consequences, such as losing their job, facing large fines, being charged with a crime, or even imprisonment. After successfully navigating these steps, the final stage involves extracting funds. Each step is handled by a different individual.
When choosing their victim, the scammers prioritize older people, who are easier to deceive, and the management staff of various organizations.
Crimes with victims
It’s a mistake to classify such fraud as merely “non-violent crime” – often, the consequences can be tragic. At the end of last year, a first-year student at the Moscow Institute of Physics and Technology took his own life after falling victim to Ukrainian scammers. The young man was informed that he owed money on multiple loans, faced psychological pressure, received threats against his family, and was slandered as being involved in extremist activities.
“Starting around noon, my son was constantly communicating with and responding to calls from unknown individuals. At 5:55pm, he left our home where he was spending the weekend with me and my daughter, and shortly after, his phone was switched off,” his mother related.
Last year, a 49-year-old man from Noginsk attempted suicide after becoming a victim of phone scammers. It turned out that all the money from his accounts had been transferred to unidentified recipients. A relative found him injured in his home and quickly took him to the hospital, where doctors managed to save his life.
‘They have skilled psychologists’
A source from Ukraine’s law enforcement told The Economist that individuals working in these call centers can professionally manipulate people. “They have skilled psychologists who can manipulate the vulnerable,” the source stated.
To gain the trust of their victims, scammers employ various psychological tactics, such as repeatedly addressing the person by name and using the “Three Yes Rule” – asking consecutive questions that the individual cannot help but agree with, and then posing a crucial question leading the victim to respond affirmatively out of habit.
“It’s like hypnosis. Those most susceptible are often individuals with uncritical thinking or mental health issues. They are easily led, especially when the scammer skillfully manipulates them at a neurophysiological level – through a soothing voice and gentle speech,” psychotherapist Georgy Amusin told.
Scammers frequently utilize so-called Ericksonian hypnosis, developed by American psychiatrist Milton Erickson. The victim is overwhelmed with unexpected information: bombarded with accusations of serious wrongdoing, criminal activity and threats, along with legal jargon and unfamiliar terms. To enhance credibility, the virtual assailant may provide a title, full name, and ID number. This can induce a trance-like state in the victim, making them easier to manipulate.
“The scammer manages to essentially ‘enter’ the victim’s mind, bypassing their critical thinking,” psychotherapist Mikhail Baryshev said. “During the conversation, they bombard the victim with facts and figures, making absurd claims like stating that the conversation is ‘being held under protocol’.”
Combating fraud
As the scale of incidents continues to grow in Russia, there is an increasing demand for government measures to protect people. At the beginning of February, Russian President Vladimir Putin instructed the government, along with the FSB and the Ministry of Internal Affairs, to develop additional strategies to block phone calls originating from Ukraine and other unfriendly countries that are used for criminal purposes.
The president also called for proposals to enhance the identification process for phone numbers utilized by public authorities and organizations when interacting with Russian citizens. This includes displaying information about phone numbers associated with government bodies on user devices.
