14-6-2024 (SINGAPORE) In a sweeping international crackdown, Singaporean authorities, in collaboration with their counterparts in Malaysia, Hong Kong, and Taiwan, have apprehended two men suspected of masterminding a malware-enabled scam that has defrauded Singaporeans of millions of dollars since June 2023.
The Singapore Police Force (SPF) announced late on Friday that the two suspects, aged 26 and 47, were arrested in Malaysia following a joint, multi-jurisdiction probe. The arrests mark a significant breakthrough in the ongoing battle against cybercrime and underscore the importance of international cooperation in combating transnational criminal networks.
Preliminary investigations have revealed that the pair allegedly operated servers for the purpose of infecting victims’ Android mobile phones with a malicious Android package kit (APK) app, enabling them to remotely control the devices. These malicious apps allowed the scammers to modify the contents of the victims’ phones, subsequently compromising their bank accounts.
The scammers’ modus operandi involved deceiving victims into downloading the malicious apps onto their mobile devices, granting them remote access and the ability to steal sensitive information, including personal data and banking credentials. The stolen data was then exploited to perform fraudulent transactions on the victims’ accounts, resulting in substantial financial losses.
According to SPF’s statistics, at least 1,899 cases of victims in Singapore having downloaded malware onto their phones were reported in 2023, with losses totaling at least S$34.1 million (US$25.1 million).
The investigation trail began when SPF analyzed the victims’ reports and discovered that the individuals involved in these malware-enabled scams might be operating across multiple jurisdictions. In November 2023, a joint, multi-jurisdiction investigation team, led by SPF and including the Hong Kong Police Force (HKPF) and the Royal Malaysia Police (RMP), was formed to unravel the complex web of criminal activity and online infrastructure hosting the malware.
“Over the course of the next seven months, the joint investigation team unravelled the complex web of criminal activity and online infrastructure hosting the malware,” said SPF, highlighting the extensive efforts undertaken to dismantle the syndicate’s operations.
Based on the leads uncovered, Singaporean authorities established the identities of the two suspects and traced their location to Malaysia. With the assistance of the RMP, the men were arrested on June 12, 2024, pursuant to warrants issued by the Singapore State Court.
The suspects were handed over to Singaporean authorities on Friday and will be charged in court on Saturday with the offence of unauthorised modification of computer material, which carries a potential fine of up to S$50,000, an imprisonment term of up to seven years, or both. Additionally, the 47-year-old man will face charges of acquiring benefits from criminal conduct, which could result in a fine of up to S$500,000, up to 10 years’ imprisonment, or a combination of both.
The far-reaching impact of the investigation extended beyond Singapore’s borders. In the course of the inquiries, SPF shared information with the Taiwan Police, leading to the successful takedown of a syndicate operating a fraudulent customer service centre in Kaohsiung City. During a raid on May 15, Taiwanese authorities arrested four individuals and seized assets, including cryptocurrency and real estate, amounting to a total value of approximately US$1.33 million.
Meanwhile, the HKPF dismantled 52 malware-controlling servers in Hong Kong and apprehended 14 money mules who had allegedly facilitated the malware-enabled scam cases by relinquishing the use of their bank accounts to the scammers in exchange for monetary rewards.
Deputy Director of the Criminal Investigation Department, Assistant Commissioner of Police Paul Tay, expressed gratitude to all law enforcement officers and stakeholders involved in the operation, emphasizing the importance of international collaboration in combating cybercrime. “The arrest of these malware operators and dismantling of scam infrastructure demonstrates the resolve of the SPF in fighting scams. We are grateful for the strong partnership from our Malaysian, Hong Kong and Taiwanese counterparts, which has enabled us to disrupt this criminal operation and prevent further harms to victims,” he said.
