KD 100 mln cybercrime network busted; Interior Minister oversees major crackdown

His Highness the Deputy Prime Minister and Minister of Interior, Sheikh Fahd Yusuf Saud Al-Sabah, personally supervised a major security operation that dismantled an organized international criminal network involved in electronic fraud, money laundering, bank forgery, and alternative remittance (hawala) activities, the Ministry of Interior announced.

The case began after a victim reported being defrauded online. Investigations by the Criminal Investigations Department revealed that stolen funds were used to purchase smartphones inside Kuwait through anonymous international numbers.

The devices were collected by agents, resold for cash, and the proceeds circulated through multiple intermediaries before being funneled into shell companies registered locally.

Authorities found that these firms had no real business activity and served solely as fronts to legitimize illicit funds before transferring them abroad.

One key suspect fled to Jordan after learning of the investigation but was tracked, arrested, and returned the same day in coordination with Jordanian security authorities.

During questioning, the suspect admitted to establishing fictitious companies at the request of individuals outside Kuwait to launder money and disguise its origins.

Investigators said funds were deposited daily into the companies’ bank accounts through a money collection firm. Fake invoices were also submitted to banks to conceal suspicious transactions.

Officials disclosed that around 6 million dinars had been deposited into the companies’ accounts during the current month alone, while total funds laundered since 2023 are estimated to exceed 100 million dinars.

The money is believed to originate from fraudulent websites used to scam citizens and residents through cyber fraud and forged banking operations.

The operation led to the seizure of 108,000 dinars in cash before it could be transferred, as well as nine smartphones linked to fraud activities.

Nine suspects have been referred to the Public Prosecution, including the nominal owner of the shell companies, who registered the firms in his name in exchange for annual payments.

Legal action was also taken, in coordination with the Central Bank of Kuwait, against a money transfer company found to have violated its license by storing large cash amounts in breach of regulations.

The Ministry affirmed that security agencies continue to intensify efforts to combat technology-driven financial crimes and protect the banking system from organized cross-border fraud networks.