Estonian police warn: fraudsters attacking non-profits and apartment associations with increasing boldness
In Estonia's largest fraud case in recent weeks, a victim lost nearly 500,000 euros. Authorities have drawn attention to the fact that non-profit organisations and housing managers are particularly vulnerable, as their financial controls are often weak.
Estonian police warn: fraudsters attacking non-profits and apartment associations with increasing boldness
A week ago, a 49-year-old man suffered losses worth nearly half a million euros. Money disappeared from both his personal and business accounts. This scheme bore strong similarities to a case involving an arts organisation, where approximately 700,000 euros were stolen.
The criminals' tactics were complex. First, a courier contacted the victim, claiming he needed to deliver documents. Then fraudsters posing as bank and police representatives took centre stage. Remote access software was installed on the victim's computer, which blocked his access to his accounts. The screen became invisible and unknown individuals began making transfers. According to Jaagup Toompuu, head of the fraud-solving centre at the Northern Prefecture, this was another "covert operation".
In May alone, over two million euros disappeared to fraudsters in Estonia. More than one thousand crimes committed through forged websites and phishing sites were registered. According to Märt Hiietamme, head of the analysis and prevention department of the State Information System Authority (RIA), fortunately a large proportion of attempts fail to reach completion. However, people come under pressure when they are waiting for a package or have just made a bank transfer. During a phone conversation, they are forced to enter PIN codes, after which the money disappears.
Non-profit organisations and apartment associations are at particular risk. They often lack proper oversight of financial transactions. Toompuu explained that frequently only one person is needed to authorise transfers. Additionally, bank account balances are not monitored regularly, which is why theft is often only discovered weeks or even months later.
Apartment associations' deposits can accumulate hundreds of thousands of euros in renovation funds. For example, money is collected over years for roof or heating system replacement. The association led by Sergei Kuznetsov has implemented a two-stage approval procedure: the accountant prepares the payment and a board member approves it.
Kuznetsov emphasised that in case of doubt, one must always double-check. He gave an example of Elektrilevi employees who wanted to carry out repairs at the building. The association sent representatives away twice, and only on the third attempt, once official documentation had been obtained and documents verified, were the works permitted to begin.
Source: ERR
Source: ERR