The Verkhovna Rada has passed a bill to toughen liability for electronic communications fraud and the operation of fraudulent call centres. A total of 313 MPs voted in favour, the parliament’s press service reported.
The law adds new articles to the Criminal Code providing for liability for the unlawful collection, storage and use of personal data, banking secrecy and payment instrument details to misappropriate someone else’s property. The document introduces a formal definition of the offence to more effectively counter systemic schemes, including “financial pyramids”.
The explanatory note to the document states that the detection rate for such crimes is disappointing because, when the theft of funds from an account is discovered, there is no mechanism to protect victims. The Criminal Code article on fraud does not reflect modern realities, so there is a need to improve the legislation. The Criminal Code will be supplemented with Article 190(1) “Electronic Communications Fraud”, which provides for liability for the unlawful collection, storage, processing and use of personal data and information containing banking secrecy, including individual account information, details and an authorisation code, with the aim of misappropriating someone else’s property or acquiring rights to property by deception or abuse of trust using electronic communications. This article provides for imprisonment for a term of three to eight years, with disqualification from holding certain positions for up to three years. Acts committed repeatedly or by prior conspiracy by a group of persons provide for imprisonment from five to 10 years, with disqualification from holding certain positions for up to three years. And for an offence committed under martial law or a state of emergency, imprisonment for a term of seven to 12 years is предусмотрено, with disqualification from holding certain positions for up to three years and confiscation of property.
The Criminal Code will also be supplemented with Article 255(4) “Establishing or leading an electronic communications fraud organisation, as well as participation in it” and Article 255(5) “Inducing participation in an electronic communications fraud organisation”.
Article 255(4) provides for imprisonment from seven to 12 years with confiscation of property for establishing an electronic communications fraud organisation, leading it or its structural units. Providing services to and participating in such an organisation is punishable by imprisonment from five to 10 years with confiscation. And offences committed under martial law or a state of emergency, if committed by an organised group, are punishable by imprisonment from eight to 13 years with confiscation. Establishing a community of electronic communications fraud organisations, that is, объединение of two or more electronic communications fraud organisations, and leading such a community, are punishable by imprisonment for a term of 10 to 15 years with confiscation of property. A person, other than the organiser or leader of electronic communications fraud organisations, is exempt from criminal liability for committing an offence предусмотрено by parts two or three of this article if, before being notified of suspicion of committing this offence, they voluntarily reported the establishment of an electronic communications fraud organisation or their participation in it and actively assisted in its disclosure.
Article 255(5) provides that inducing participation in an electronic communications fraud organisation, including offering work, providing services to an electronic communications fraud organisation, or providing information about such an organisation with the aim of recruiting people to participate in an electronic communications fraud organisation, is punishable by imprisonment for a term of three to five years with confiscation of property. The same acts committed repeatedly, or under martial law or a state of emergency, or if committed by an organised group, are punishable by imprisonment for a term of five to 10 years with confiscation of property or without it.
- Often, victims of call centres that gained access to bank accounts through deception were not only citizens of Ukraine but also foreigners.