Prague, 16 August - A new type of financial fraud has emerged on the Czech market last month. A fictitious company, citing high inflation and the associated devaluation of savings, will typically convince elderly people or entrepreneurs to invest in cryptocurrencies. The fraudster will create a fake investment account for the victims to elicit all their savings. These are the finding of Analytics Data Factory, a Czech company which focuses on fraud management, specifically real-time fraud prevention.
"With inflation hitting 10%, people are much more likely to resort to investments because they are worried about the devaluation of their savings they typically keep on a current account with an extremely low interest rate. Fraudsters are taking advantage of the fact that many people have no experience with online investing and that funds stored in cryptocurrencies can be completely anonymous and therefore untraceable," says Kamil Mahdal, founder and CEO of Analytics Data Factory, an expert in managing and leveraging corporate data. “The way it works is that fraudsters create a fake accou nt for their client. By investing through it, the victim actually sends money directly to the scammer and will lose it,” adds Kamil Mahdal.
Typically, a fictitious company will target pensioners or entrepreneurs who have large savings. The culprits do not even need to make much effort to convince the victims that their money deposited on a current account is rapidly losing value, as this is a well-known fact. With the right arguments and some psychological coercion, they will persuade the victims to try investing in cryptocurrencies. “They create a fake investment account for the victim on a fake investment portal, where their clients sees their investments successfully grow. However, the exact opposite is true, as the savings are already in the hands of the fraudsters,” says Jiří Mojžíš, fraud management expert and CTO of Analytics Data Factory.
“Stealing money is often only one part of the scam. Fraudsters also make the victims install a special investment application on their PCs to open a backdoor to other sensitive data,” concludes Jiří Mojžíš.
About Analytics Data Factory:
Analytics Data Factory is a supplier and administrator of solutions based on SAS analytical technologies on the Czech market, including the entire associated ecosystem, such as hardware, operating systems, databases, development and versioning software, messaging infrastructure, and big data platforms. Analytics Data Factory primarily specializes in services where it achieves excellence, as witnessed by client references. These include real-time data analytics in areas, such as proactive customer relationship management (CRM), fraud prevention, signal processing and image recognition, and advanced analytics of big and streaming data. Its clients include Komerční banka, Česká podnikatelská pojišt'ovna, Kooperativa insurance company, Home Credit, and others. For more information about the company, please visit www.byadf.cz.
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