Austrian police have uncovered a $1.2 million “Rip-Deal 2.0” crypto scam

Detectives in Vienna, Austria, have busted a $1.26 million (€1.2 million) crypto fraud operation they’re calling Rip-Deal 2.0.

A 39-year-old suspect with a previous conviction was arrested in Milan, Italy earlier this year with the help of Europol. English-language local media International. In October, the regional court sentenced this man to three years in prison.

The suspect reportedly engaged in a new variant of the Rip-Deal scam, which traditionally uses counterfeit money to purchase high-value items such as expensive watches or gold. In this case, the victims were giving fraudulent cryptocurrency instead of fake money. Vienna police call this variation “Rip-Deal 2.0”.

The suspect was also found to be in possession of 200,000 euros worth of counterfeit money. Chief Inspector Gerald Goldnagle, head of the Vienna Division, said “these crimes are often committed by organized crime groups from the Western Balkans”.

These latest developments are the culmination of an operation that began in 2021, when a private investigator who helped victims of the scheme approached the Vienna police department. To pull off the scam, the alleged scammers posed as businessmen and offered to help a man sell an apartment in Italy in exchange for a €75,000 commission. After that, they paid fake money to the seller and hid their tracks.

“We were able to solve this case relatively quickly. Photos and audio recordings of the suspect known as “Kennedy” were key, said Detective Valentine Saga-Doctor.

The investigation gradually expanded to include more cases involving the same suspect. His victims spread across Austria, Switzerland and Germany.

An Austrian businessman lost almost 131,000 euros after scammers tried to convince him to transfer crypto in a fake industrial equipment deal. His daughter, who is a police officer, noticed the warning signs and ended the deal after the alarm went off.

Detective Mario Keynz understood the group’s deception methods to be “excellent”. In some cases, “they force victims to enter their passwords or ‘passphrases’ for cryptocurrency wallets, sometimes spying on their phone screens via cameras hidden in the ceiling.”

This was reported by Dmitry Yasmanovich, the head of the compliance department of Hacken crypto-cybersecurity firm. Deciphering Such strategies can be countered “using counter-surveillance tools such as camera detection devices and signal-jamming technologies during sensitive encounters.” It specifically recommends using “real-world signal and light detection devices” rather than mobile device apps.

According to Yasmanovych, signal blockers are radio frequency jammers. There are dedicated surveillance camera detection aids that typically target the 900 MHz to 2499 MHz range, with some reaching up to the 5 GHz range. But keep in mind that radio jammers are illegal in many jurisdictions, so it’s a good idea to check local laws before buying and using one.

It’s also worth noting that radio jammers are of little use if the camera stores a local copy of the video (in most cases on a microSD card) to be released later. In those robes, there are devices that can be seen from the piles of piles that Yasmanovyt drove. They use laser detectors to find reflective lenses and infrared detectors to find night vision cameras that emit infrared light, just like optical scanners that look for lenses.

The Vienna Police Rip-Deal Fraud Unit of the Vienna Police has solved 102 cases since 2020 with damages amounting to 25 million euros ($26.2 million). Still, police say victims fear getting involved, especially in counterfeiting, as many cases go unreported.

“Cybersecurity firms and law enforcement agencies can build trust by establishing anonymous reporting mechanisms and by providing clear assurances that victims will be treated with sensitivity and confidentiality,” Jasmanovic said.

Edited by Stacey Elliott.