Illicit financial schemes thrive in Russia, with Telegram-driven informality increasing

In 2023, the Russian regulator identified 2,940 financial pyramids. This represents an increase of one and a half times more than the previous year, asserts The Moscow Times, referencing the news agency Interfax.

The majority of these financial pyramids are small initiatives linked to cryptocurrencies. Roughly half of them promote the use of overseas payment services. Pyramid operators market themselves through social media and the Telegram messaging app.

There has also been a substantial rise in the number of unlawful loan companies. The Central Bank estimated their count at 1,884, which corresponds to a surge of 9 percent. Nearly half of these companies conduct their operations solely online and lack physical office locations.

The Central Bank identified a total of 5,700 companies, ventures, and individuals involved in illegal activity. This is over a 15 percent increase from 2022.

The regulator reveals that last year, it initiated restrictions on access to 11,000 illegal online companies, including more than 3,000 websites, messenger channels, and chatbots.

In that same year, the Russian Foreign Ministry noted a rise in other types of attempts to defraud money. The principal victims were the elderly. Seniors received phone calls wherein the caller endeavoured to convince them that someone was attempting to secure a loan in their name or withdraw funds from their accounts.