More than 32 million tenge disappeared from the account of Aktobe construction firm NOVO Stroi at Freedom Finance Kazakhstan.
According to Ratel.kz, the company arranged for a client to buy a flat through a mortgage at the bank. Its value exceeded 32 million tenge. After approving the contract, the bank transferred the amount to NOVO Stroi's account; however, 20 minutes later the director received a phone call on his mobile informing him that suspicious transactions were taking place on the company's account. The money was allegedly being transferred to several people under the guise of salary payments. The director asked for the transactions to be stopped.
He later discovered that the money the bank had transferred to the firm for the flat had disappeared from the account.
"During the investigation at the bank, the company's director learned that a bank employee had indeed called him about the suspicious transactions. But the bank only froze the account after the fraudsters had withdrawn the money as salary payments to people who had never worked for the firm. What's more, it was done very quickly – in just a couple of minutes, a payment order was generated in the electronic system and the money was transferred. It was as if someone at the bank knew in advance that the money would be in the account," the report stated.
Later, the police department for the Astana district No.2 of Aktobe city opened a criminal case.
As suspected, almost the entire sum was taken by fraudsters. Part of the money – 8.3 million tenge – was transferred to the accounts of three money mules in Ekibastuz. Another 8.3 million tenge was received by intermediaries from Petropavlovsk. It is reported that the company managed to recover the money from them through the courts.
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For reference: a money mule is a person used by fraudsters to achieve their goals. They carry out instructions and receive money for doing so.
"The money mules only provided their accounts to the fraudsters; they did not receive the money themselves. The bank does not admit its fault, and the police cannot find those who organised the theft of the money. During the several months that the company's computers were with the police, the investigation did not even carry out a forensic examination of them," the report stated.
In turn, lawyer Yelena Ignatenko, who represents the victims, stated that the crime was committed under the guise of remote purchases of goods through affiliated companies.
"These companies interacted with each other in the following way: Mobile World LLP sells goods through its online store, Freedom Finance Credit Microfinance Organisation LLP provides a loan to pay for the goods, Freedom Finance Kazakhstan Bank JSC opens an account for the victim to carry out payment transactions, and Freedom Finans Life Life Insurance Company JSC insures the risks of loan default through its agent – Mobile World LLP," the lawyer reported.
It emerged that the fraud scheme was as follows:
- The fraudster pre-registers a phone number with Kar-tel LLP in the name of a person with whom the victim, chosen for the loan application, may have previously crossed paths (in order to later accuse them of collusion);
- A phone call to the victim with an insistent request to collect a prize from the "corner shop";
- Registration of an account in the victim's name in the mobile application of MFO Freedom Finance Credit LLP, linked to the phone number registered to another person and to a different address for goods delivery;
- Obtaining a photo of the victim and uploading it in place of biometric data in the MFO Freedom Finance Credit mobile application;
- The MFO draws up a loan agreement (commodity loan), a remote purchase agreement for goods with Mobile World LLP, and an insurance agreement with Freedom Finans Life Insurance Company JSC through Mobile World LLP as the insurance agent;
- Automatic opening of an account in the victim's name at Freedom Finance Kazakhstan Bank JSC, the transit transfer of money through it to Mobile World LLP for the goods, and from its account to Freedom Finans Life Insurance Company JSC for the insurance;
- Appropriation of the goods obtained on credit in the victim's name.
The lawyer also reported that of 131 recorded cases of fraud in 2022 and the first quarter of 2023 committed through lending via MFOs, 78 relate to MFO Freedom Finance Credit LLP.