20 hackers arrested in EUR 1 million bank phishing scam

​Criminals faked e-mails from tax authorities to defraud bank customers across Italy and Romania out of EUR 1 million

29 March 2018

Joint Eurojust/Europol press release

A two-year long cybercrime investigation between the Romanian Directorate for Investigating Organised Crime and terrorism – Central Structure, Romanian National Police, the Prosecution Office of Milan and the Italian National Police, with the support of Eurojust, Europol and its Joint Cybercrime Action Taskforce, has led to the arrest of 20 suspects in a series of coordinated raids on 28 March. Nine individuals were detained in Romania and 11 were arrested in Italy for banking fraud that netted EUR 1 million from hundreds of customers of two major banking institutions. The Romanian authorities have conducted 15 house searches involving 120 Romanian police officers, while the Italian authorities carried out 9  home and computer searches, involving more than 100 Italian police officers. Documents, IT devices, drugs and other materials were seized in Romania and Italy.

The organised crime group (OCG), comprised of Romanian and Italian nationals, used spear phishing e-mails impersonating tax authorities to harvest the online banking credentials of their victims.
While the most common phishing scams generate millions of generic e-mails, spear phishing e-mails are personally addressed to targeted stakeholders with content to make them appear to be sent from a reputable source, such as a bank. Recipients are encouraged to click on a link, which will lead to a fake version of a legitimate website from which their account or contact details can be stolen.

The investigation, initiated in 2016, uncovered how the criminals used the stolen online banking credentials to surreptitiously transfer money from the victims’ accounts into accounts under their control, and from there withdrew the money from ATMs in Romania with credit/debit cards linked to the criminal accounts.

The highly organised OCG pursued its criminal activity using encrypted chat applications. It established its power by applying intimidating and punitive methods towards affiliates and competitors. The OCG is also suspected of money laundering, drug and human trafficking, prostitution and participation in a criminal organisation.

During the investigation, Europol supported the case by providing tailored intelligence analysis and expertise to the investigators and deploying mobile offices on the action day to both countries. Several coordination and operational meetings took place prior to the action at Eurojust and Europol.

Eurojust ensured close cooperation and coordination among the prosecuting and investigating authorities in both Romania and Italy. During two coordination meetings held at Eurojust in March and October 2017, decisions were taken to facilitate the execution of coordinated actions with simultaneous arrests and searches, prevent a conflict of jurisdiction (ne bis in idem issue), continue the parallel investigations and exchange of information, and organise a coordinated action day.  On 28 March, a coordination centre was set up at Eurojust, facilitating the exchange of information between the involved countries and providing a final global overview of the results.

Due to the demanding investigative measures run on an international level, the Romanian and Italian judicial authorities requested the establishment of a joint investigation team (JIT), which was set up  in March 2017 between Italy and Romania with the assistance of Eurojust. Eurojust also facilitated the funding process of the JIT. The JIT allowed for efficient cooperation and coordination, including the continued exchange of information and evidence between Italy and Romania.




20 hackers arrested in EUR 1 million bank phishing scam

​Criminals faked e-mails from tax authorities to defraud bank customers across Italy and Romania out of EUR 1 million

29 March 2018

Joint Eurojust/Europol press release

A two-year long cybercrime investigation between the Romanian Directorate for Investigating Organised Crime and terrorism – Central Structure, Romanian National Police, the Prosecution Office of Milan and the Italian National Police, with the support of Eurojust, Europol and its Joint Cybercrime Action Taskforce, has led to the arrest of 20 suspects in a series of coordinated raids on 28 March. Nine individuals were detained in Romania and 11 were arrested in Italy for banking fraud that netted EUR 1 million from hundreds of customers of two major banking institutions. The Romanian authorities have conducted 15 house searches involving 120 Romanian police officers, while the Italian authorities carried out 9  home and computer searches, involving more than 100 Italian police officers. Documents, IT devices, drugs and other materials were seized in Romania and Italy.

The organised crime group (OCG), comprised of Romanian and Italian nationals, used spear phishing e-mails impersonating tax authorities to harvest the online banking credentials of their victims.
While the most common phishing scams generate millions of generic e-mails, spear phishing e-mails are personally addressed to targeted stakeholders with content to make them appear to be sent from a reputable source, such as a bank. Recipients are encouraged to click on a link, which will lead to a fake version of a legitimate website from which their account or contact details can be stolen.

The investigation, initiated in 2016, uncovered how the criminals used the stolen online banking credentials to surreptitiously transfer money from the victims’ accounts into accounts under their control, and from there withdrew the money from ATMs in Romania with credit/debit cards linked to the criminal accounts.

The highly organised OCG pursued its criminal activity using encrypted chat applications. It established its power by applying intimidating and punitive methods towards affiliates and competitors. The OCG is also suspected of money laundering, drug and human trafficking, prostitution and participation in a criminal organisation.

During the investigation, Europol supported the case by providing tailored intelligence analysis and expertise to the investigators and deploying mobile offices on the action day to both countries. Several coordination and operational meetings took place prior to the action at Eurojust and Europol.

Eurojust ensured close cooperation and coordination among the prosecuting and investigating authorities in both Romania and Italy. During two coordination meetings held at Eurojust in March and October 2017, decisions were taken to facilitate the execution of coordinated actions with simultaneous arrests and searches, prevent a conflict of jurisdiction (ne bis in idem issue), continue the parallel investigations and exchange of information, and organise a coordinated action day.  On 28 March, a coordination centre was set up at Eurojust, facilitating the exchange of information between the involved countries and providing a final global overview of the results.

Due to the demanding investigative measures run on an international level, the Romanian and Italian judicial authorities requested the establishment of a joint investigation team (JIT), which was set up  in March 2017 between Italy and Romania with the assistance of Eurojust. Eurojust also facilitated the funding process of the JIT. The JIT allowed for efficient cooperation and coordination, including the continued exchange of information and evidence between Italy and Romania.




Press release: Innovators across the North East get a multi-million pound Industrial Strategy boost

The Business Secretary Greg Clark has today (29 March 2018) announced that, as part of the Industrial Strategy, 3 projects across the North East of England have been awarded almost £15 million to help improve local universities, businesses and entrepreneurs produce new products and services and bring them to market.

Ensuring the UK is the best place for innovators is at the heart to the modern Industrial Strategy and key to the government’s plan of building a Britain fit for the future. The new investment, part of the £100 million Connecting Capability Fund, will support a range of activity aimed at growing the North East economy, creating jobs and delivering major environmental benefits for the region.

Business Secretary Greg Clark said:

The North East has some of the most innovative people, businesses and organisations and I am determined to build on its success.

Improving our ability to bring new innovations and products to market is crucial to the success of the UK economy and the new set of projects announced today will further strengthen the link between our world leading universities and businesses.

Through our Industrial Strategy we are determined to improve people’s lives. By increasing investment in research and development by an extra £7 billion over the next five years we will ensure the UK remains one of the best places in the world to innovate, do business and create the high value, high skilled jobs of the future ensuring we build a Britain fit for the future.

The new projects announced today include £5 million of funding for a project led by Durham University which includes Newcastle University, Northumbria University and the University of Sunderland to deliver a step change in commercialising research and drive economic improvement in support of the North East’s technology and industrial sectors. Called Northern Accelerator, the project will build on an existing project of the same name and establish a seed capital investment fund to help turn concepts into new businesses or products.

The bioeconomy is worth over £36 billion to the UK and is one of the key growth areas for the economies. To take advantage of the growing sector, £5 million is being invested to build the bioeconomy sector across the Tees Valley, Yorkshire and Humberside.

In collaboration with regional industry, Local Enterprise Partnerships and the wider community, Teesside University will work with the University of York and the University of Hull to deliver projects focused upon 3 areas: transforming bio-based waste into new products; converting industrial sites by re-purposing them for bio-based manufacturing and growing the productivity of the region’s bioeconomy as a whole by bringing together research and commercialisation capabilities within the three universities. The new investment is expected to grow the region’s economy, create new jobs and have major environmental benefits.

David Sweeney, Director of Research and Knowledge Exchange at HEFCE and Executive Chair Designate of Research England, said:

Today’s announcement is a first for Research England, which comes into existence on 1 April. These projects exemplify our aims – to work in partnership with universities, support innovations and deliver benefits for the economy and local communities.




News story: The Northern Ireland Assembly Members (Pay) Act 2018

The Northern Ireland Assembly Members (Pay) Act 2018 has now received Royal Assent. This enabled the Secretary of State to make a determination on MLA pay and allowances, which she has now made, confirming that the forthcoming £500 inflationary increase from 1 April will not apply to MLAs.

Secretary of State determination




Speech: British High Commissioner’s speech at the Kisumu County Assembly

Mr Speaker,
Honourable Members,

It is an enormous privilege to address this Assembly today.

The country which I represent cherishes deeply our deep connections to this city and to this beautiful region of Kenya.

I’m told that the very name “Kisumu” comes from words to do with trade. Going to Kisumu meant going to trade. That bespeaks an openness to the world, a diversity, a sense of the city and the county as a great meeting point of people, which are still felt here today.

The United Kingdom’s connections with Kisumu go back more than a century. Our shared history has moments of deep pain, and we must live with and respect that. But we recognise too that it has bound us together, and that the connections it has fostered still bind us today.

Kisumu, or Port Florence as the British colonisers briefly called it, was of course the terminus for the great railway which opened up Kenya – the only time, it was said, that a railway had built a nation rather than the other way round.

British agriculturalists helped develop the sugar industry and bring breeds of maize which thrived in this region’s rich climate.

British missionaries helped bring formal education to Nyanza. Miss Fanny Moller started by teaching older women in the mornings and encouraging them to send their children in the afternoons. Along with Cannon Pleydell she founded a girls school in Ng’iya, in Siaya, in 1923, one of the very first places in this part of the world which gave a formal education to girls. Ng’iya girls high school still stands there today.

Today this region remains a focus for us as a donor, in an overall programme for Kenya as a whole worth 40 billion shillings every year.

Today I visited a UK-funded health centre helping women make choices about their lives by providing family planning.

I saw another UK-funded project that is working with KMET here in Kisumu to end post-partum haemorrhage – the complications and bleeding after childbirth which still kill too many young mothers in this region.

The UK has distributed millions of bed nets to help families protect themselves from malaria. And we have developed and delivered through pharmacies across Kenya a rapid, finger-prick diagnostic test for malaria, so people with a fever can quickly see whether they indeed have that disease or something else, and can quickly get the right treatment.

We continue to work closely with the county government here and in the region to build their capacity to deliver healthcare. And through networks such as the Tunza clinics we are working to bring that care to the hardest-to-reach areas.

Meanwhile UK Aid is helping bring low-cost private education to areas where the state hasn’t reached; to bring more girls and disabled people into sustainable schooling; and to empower girls and young women through programmes such as Premier Skills, which uses football coaching to build confidence and tackle domestic abuse or genital cutting.

Fundamentally, our aid is designed not just to help people today, but to help Kenya build the systems that will allow central and county governments sustainably to provide services themselves in the future.

The Governor and I discussed today how the UK can provide more assistance to the county government of Kisumu to do that, and we will be following that up.

This also means helping build the prosperity which will lift people out of poverty and enable governments to finance the services they need.

Through Trade Mark East Africa, the UK has funded new border posts for example in Busia to speed up trade through this region and help companies make the most of its international connections. That links to work all the way back to Mombasa port which has already cut by several days the time taken to import and export goods through the port, making it cheaper for companies across Kenya to trade.

As the next phase of Kenya’s great infrastructure projects works up from Nairobi towards the Lake, the UK will remain closely involved – as an investor and as a development partner working to ensure that those projects deliver real benefits for businesses and wananchi.

We are making development investments in projects that will improve people’s lives through innovation. We have put UK money for example into SolarNow, which is bringing small-scale solar power to households and to pump water.

And we will bring more private investment to Nyanza. I have been joined on my visit today by the chairman of the British Chamber of Commerce in Kenya, representing several hundred British companies active here and keen to invest and expand further. He will take the message back too about what is happening in this region and what new possibilities are here.

In Homa Bay, a British firm is building a biogas plant which will turn water hyacinth from the Lake into electric power. Once the power purchase agreement is complete – and I continue to urge the Kenyan government to make progress on this quickly – it will come on line.

Here in Kisumu, East Africa Breweries is building a major new plant which will, once complete, employ hundreds of people directly and support tens of thousands more jobs through its supply chains and distribution networks.

EABL is a company which is not just investing in Kisumu but is driving development here and across the country. Five years ago, less than half of what went into its Kenya-brewed products was sourced locally. Today 80 percent of its product is local content. That transformation has brought tens of thousands of Kenyan farmers into its supply chains. And the company is already talking to more farmers in this region about how they can supply its new plant.

Mr Speaker,

It is my sense that this region stands at an important point in its history.

A window has opened for political reconciliation, and that is hugely to be welcomed. It can only benefit the people of Kisumu and the region. Already I hear from everyone I have met here how business is picking up and investors are excited about new possibilities.

This region deserves its full share of justice, equality and inclusion, like every part of Kenya and like every Kenyan. And in turn it should play its full role in supporting and strengthening Kenya’s institutions, and ensuring they can go about their vital work. Its future lies as one of the country’s most dynamic and prosperous areas, contributing its full share to Kenya’s success and benefiting in turn fully from the country’s shared prosperity.

I reiterate today the United Kingdom’s call that reconciliation between political leaders be followed and accompanied by an open, sustained and transparent dialogue involving politicians, religious and civic leaders, and all those with a stake in Kenya’s present and its future. Now is the time to deal not just with the aftermath of last year’s elections but with the underlying issues which will help this country and this region prosper and develop.

The dialogue of which I speak should include the strengthening of institutions, preventing politicians tearing down and attacking for political gain the common fabric which holds Kenya together. Kenya’s democracy is precious, and all Kenyans need to work to protect and strengthen it.

It includes greater accountability and reform of the security services. They have an important job to do maintaining order, and that can be tough. But where people are killed or abuses alleged, they must be transparently investigated and those responsible held to account.

Such a dialogue should include also, in my view, how the workings of devolution can be strengthened and reinforced.

There are I’m sure many other issues – including how Kenya’s governance should evolve over the coming years. They are for Kenyans to determine. What I say I say as a friend of Kenya, representing a country deeply invested in its future security and prosperity as a partner. And in that capacity I call again for the follow-up to this month’s historic handshake to grapple with the big issues on Kenya’s future; and on the leaders of this region to take their full share of responsibility in building the common future which Kenya needs.

Mr Speaker,

It has been an enormous privilege for me to address this assembly today. And as always, it has been a great pleasure to visit this beautiful county of Kisumu.

I pray for success in the work of this Assembly, and for the peace, prosperity and development of this county and this region.

I commit the United Kingdom to doing all we can to support those aims. I will continue to strive to deepen the partnership between my country and your county.