Scam call centers in Ukraine
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Scam call centers operate in Ukraine,[1][2] including major cities such as Kyiv and Dnipro. The activities of these call centers may be punished under Article 190 of the Criminal Code of Ukraine.[3] According to Sberbank, the "capital" of phone fraud is Dnipro,[4] and up to 95% of calls to Russians originate from Ukraine.[5]
These organized cells specialize in fraudulent schemes aimed at extracting funds from citizens. According to Article 190 of the Criminal Code of Ukraine, the activities of these call centers are illegal.[3] According to the Sberbank, Russian state-owned bank, the "capital" of phone fraud is Dnipro.[4] Scammers may call individuals, posing as bank and mobile operator security personnel, to obtain card information and SMS codes for the purpose of misappropriating victims' funds. After obtaining data supposedly meant to prevent fraud, scammers siphon money from victims and transfer it to specific accounts. The operations of such groups are not confined to Ukraine and Russia but target countries with a significant Russian-speaking population, such as Kazakhstan, Poland, and the Czech Republic. However, there are also call centers focused on English-speaking countries.[2]
According to the Geneva-based Global Initiative, which monitors such activities, the proceeds from fraudulent call centers often do not contribute to the development of the Ukrainian economy but are transferred to offshore accounts or cryptocurrencies to avoid taxation.[1]
International media and organizations such as The Times of Israel, Dagens Nyheter, and the Organized Crime and Corruption Reporting Project (OCCRP), have exposed information about scam call centers based in Kyiv. One of the companies associated with these call centers is named "Milton Group".[citation needed]
The Russian government has said that Ukrainian scam call centers have played a significant role in the many unusual fires that have occurred in Russia since its invasion of Ukraine in February 2022. In December 2022, Russian Federal Security Service (FSB) issued a warning about Ukrainian scam calls, saying that scammers "incline gullible citizens to commit arson attacks on social infrastructure facilities, as well as cars in crowded places". According to the FSB, most of these arsonists were told that they were participating in an operation to catch pro-Ukrainian criminals. BBC believes that the claim is not supported by concrete evidence.[6][7]
In August 2023, the Russian Prosecutor General's Office and the Ministry of Internal Affairs issued official warnings about a new form of phone fraud in which Russians are forced to set fire to military enlistment offices through pressure or deception. The authorities claim that scammers call from the territory of Ukraine and choose elderly Russians as their victims. The Russian government has not yet offered any evidence of their claims.[8][9] Russian business newspaper Kommersant claims that fraudsters support the Armed Forces of Ukraine and organize "terrorist attacks".[10]
According to an employee of the Dnipro-based public organization Anti-Corruption Council for Human Rights, fraudulent call centers began to appear in large numbers as early as 2014.[2][11] The structure of scam call centers includes rented offices equipped with computers and specialized telephones. Important information about the functioning of the offices is stored on remote servers. Call centers have operated or continue to operate in various cities in Ukraine, such as Kyiv, Lviv, Dnipro, and Odesa, as well as outside the country — in Poland, Bulgaria, and Greece.[2]
Investigations by a number of international media outlets have revealed the structure of scam call centers in Ukraine. These structures operate within a professional hierarchy that includes junior “sales managers,” experienced “trainers,” “retention managers,” and office managers. The youthful office atmosphere of these centers is comparable to the 2013 film The Wolf of Wall Street, as they feature motivational speeches, high staff turnover, and parties.[1] Ukrainian job sites such as work.ua and rabota.ua feature high-paying job openings for “sales managers” and “retention managers” associated with fraudulent call centers.[11]
“Sales managers” are mainly young people, including students and recent graduates. Vast majority of call center employees are between the ages of 14 and 20.[2] Their main task is to convince victims to make a small initial deposit. If a potential customer is unwilling to transfer funds, an experienced social engineer intervenes, posing as a senior and competent specialist to ensure the successful completion of the transaction.[1] After the initial deposit is made, the customer is transferred to a “retention manager” whose sole purpose is to extract the maximum amount of money from them. At this stage, large-scale enrichment often occurs, deviating from the initial goal.[1] Office managers, known as “seniors,” are responsible for managing the financial and operational aspects of the business. Most often, it's the “seniors” who decide to use physical and psychological pressure on employees, or, in some cases, do so themselves. “Closers” are responsible for organizing work processes and disciplinary work, including the use of violence against employees. Psychological support for employees is provided by “mentors.”[2]
The funds from income are used to cover current expenses, including rent, salaries, cash withdrawals, currency purchases, and bribes to law enforcement officials. Cash withdrawals are carried out through crypto wallets and crypto exchanges. Profits are distributed among “shareholders", individuals who receive a portion of the profits for financing the organization.[12]
In September 2021, during an investigation, Vlad Bovtruk from Strana.ua, got a job at an underground call center operating in central Kyiv. The main requirements were fluent speech, fluency in Russian, basic computer skills, perseverance, attentiveness, and accuracy; no work experience was required.[13] Bovtruk was told that he had to call residents of Russia, introduce himself as an employee of Sberbank, and extort money from them in various ways. Upon being hired, the journalist received a manual consisting of a set of phrases in a specific order to be used when communicating with potential victims. The scammers themselves referred to their victims as “losers” or “mammoths.” As noted, the employees were fully aware that they were involved in fraud. They introduced themselves to the victims using fictitious names and called them using number spoofing programs that copied the numbers of real employees of Russia's Sberbank or the Russian Ministry of Internal Affairs.[13] It was reported that during the day, an operator at such a call center made about 300 calls and managed to deceive up to five people per working day. In year 2024, one of the largest scam call centers in Ukraine was operated in the Softserve company's building on Horodotska Street in Lviv.[13]