Eastern European-based
Organized Crime (EEOC)
EEOC’s criminal ventures are carried out through a network-based organizational structure that allows it to form groups to carry out specific criminal activities, such as payment card fraud, while relying on the expertise of individuals outside the group to assist in the criminal undertaking. Some EEOC groups are particularly opportunistic, with an ability to be involved simultaneously in both high-level (e.g., illicit drug importation) and low-level types (e.g., stolen property) of criminal enterprises. Generally, EEOC comprises groups with individuals originating from a myriad of countries, including: Russia and other former Soviet Union (FSU) republics, the Czech Republic, Slovakia, Poland, Bulgaria, Romania, Serbia, Montenegro, Macedonia, Bosnia-Herzegovina, Slovenia, Croatia and Albania. As a result, the number of different cultures and languages used by EEOC present law enforcement with significant challenges as it collects intelligence and investigates these groups. While EEOC is known for its concentration in frauds, most notably payment (debit/credit) card fraud, it is also involved in a wide range of other criminal activities, including: the export of stolen luxury vehicles, drug importation and trafficking, extortion, prostitution, money laundering, and the smuggling of humans and contraband (e.g., firearms, jewelry). Some EEOC groups’ involvement in these criminal enterprises is evidence of their level of sophistication and organizational capacity. For instance, groups involved in the export of stolen luxury vehicles require a sophisticated criminal infrastructure to steal the vehicles, transport them to marine ports, provide false documents to mask the true origin of the vehicles, and finally to have access to foreign markets. In addition, groups that participate in payment card fraud are highly mobile, and have been found operating across the country. The fraud can be carried out in a short period of time, often within hours, but accrues significant financial gain from acquiring access to bank accounts through stolen personal identification numbers (PINs). This type of fraud requires specialized skills and expertise to manufacture or acquire illegally modified white-label automatic teller machines (ATMs)3 and/or related technology, as well as surveillance equipment, such as cameras to capture PINs. In Russia and southern Africa, EEOC has demonstrated expertise in the criminal exploitation of the diamond industry. Some individuals associated to EEOC have demonstrated interest in capitalizing on opportunities relating to the diamond industry in Canada. The Canadian law enforcement community, in partnership with the diamond industry, is continuing to proactively monitor this sector to prevent criminal infiltration. To help carry out criminal enterprises, EEOC strategically forms criminal partnerships in Canada and internationally. The groups partner with each other and other organized crime groups, such as outlaw motorcycle gangs and Traditional (Italian-based) organized crime. EEOC’s ability to expand its criminal networks to other groups helps it to benefit from others’ expertise in order to target new and/or specific criminal markets. Like many organized crime groups, EEOC prefers criminal ventures, particularly frauds, with relatively low risks, high returns and limited risk of detection. Organized criminal activities undertaken by EEOC groups often demand a significant amount of resources from law enforcement. Fraud investigations, for instance, are often very complex, involve multiple jurisdictions and require expertise and resources to trace multiple transfers of illicit proceeds. EEOC groups are operating across the country; however, they continue to be concentrated in Ontario, with varying levels of presence in British Columbia, Alberta and Quebec. Although the effects of EEOC’s criminal activities may not always be visible, there are indirect threats to sectors such as the financial industry. The financial industry loses billions in revenue worldwide from payment card fraud. These losses may result in higher transaction costs for consumers, while victims have to contend with the time it takes to recover their identification documents. Similarly, vehicle-related theft and fraud cause insurance companies to lose revenue and policy-holders pay for fraud through increased premiums.
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