Latvia Confronts Record-High Cyber Threats as Fraud Campaigns Surge

Latvia is experiencing unprecedented levels of cyber threats in 2023, with numbers continuing to rise, according to Baiba Kaškina, head of the country's cyber incident prevention agency Cert.lv. In an interview with Latvian Television's program "Morning Panorama" on December 16th, Kaškina revealed that total cyberattacks have increased by approximately 13% compared to the previous year, while fraudulent incidents have surged by 30-35%. The primary driver of this escalation appears to be sophisticated fraud campaigns targeting Latvian residents through various channels.

Particularly concerning have been fraudulent messages sent on behalf of the Road Traffic Safety Directorate (CSDD), with Cert.lv documenting more than 100 cases where residents were deceived while attempting to verify potential traffic fines. These schemes alone have resulted in approximately €175,000 in losses, though Kaškina notes this figure represents only a fraction of the total financial damage from cybercrime in the country.

Background and Context

The surge in cyber threats reflects a broader trend across Europe, where increasingly sophisticated fraud operations have outpaced defensive capabilities. According to Cert.lv, Latvia's national computer emergency response team, this year marks a significant shift in the threat landscape, with telephone scams surpassing investment fraud and other previously dominant categories of cybercrime. This evolution suggests that fraudsters are adapting their tactics to exploit vulnerabilities in communication systems rather than financial markets.

The scale of the problem indicates that existing security measures are insufficient to counter the growing capabilities of criminal networks. While financial institutions have implemented enhanced detection systems, the distribution of scams across multiple platforms—including phone calls, SMS messages, and email—has created challenges for comprehensive defense strategies.

Key Figures and Entities

Baiba Kaškina, leading Latvia's primary cyber defense agency, has been vocal about the need for immediate action. "Clearly, if we could more successfully identify fake calls and number spoofing, it would solve some of the problems," Kaškina stated in her December interview, emphasizing that addressing these vulnerabilities requires both investment and legislative changes. Her agency has documented the systematic nature of current fraud operations, particularly those impersonating government services.

Mārcis Pelcis, who heads both the Finance Latvia Association's Fraud Prevention Working Group and SEB Bank's Security Department, corroborates these concerns. In an interview with Latvian Radio's "Good Morning" program, Pelcis noted that while the amounts successfully defrauded from residents remain consistent, the number of prevented cases is increasing, indicating that the total volume of fraud attempts continues to grow. He highlighted that banks are implementing artificial intelligence solutions to detect fraudulent activities more quickly, but these measures alone cannot address the systemic vulnerabilities.

Legal and Financial Mechanisms

The fraud operations primarily exploit technical vulnerabilities in telecommunications systems, particularly through number spoofing techniques that allow criminals to impersonate legitimate entities. These mechanisms have proven especially effective when combined with social engineering tactics that create urgency or fear, such as fake traffic fine notifications from the CSDD. The success of these operations highlights gaps in both technical safeguards and regulatory frameworks governing telecommunications providers.

Financial institutions have responded with enhanced artificial intelligence and machine learning systems designed to detect suspicious transaction patterns and account behaviors. However, these protective measures often intervene only after victims have been deceived, underscoring the need for upstream prevention at the telecommunications level. The persistent nature of these scams suggests that technical solutions alone cannot fully address the problem without supporting regulatory frameworks.

International Implications and Policy Response

The situation in Latvia reflects a European-wide challenge with cross-border fraud operations that exploit jurisdictional differences in regulatory enforcement. As Pelcis emphasized, "Operators are already doing a lot, but there is a lack of cooperation and communication between operators." This fragmentation creates significant challenges for coordinated responses to fraud networks that operate across multiple countries and service providers.

Both experts agree that meaningful solutions require government action to establish clear obligations for telecommunications companies in fraud prevention. "The state needs to develop a plan of action—to find a specific solution that would oblige operators to get involved in combating telephone fraudsters," Pelcis stated, calling for a broader discussion with service providers about their role and responsibilities in protecting consumers. Such measures could include mandatory caller ID verification systems, centralized scam number databases, and standardized protocols for rapid response to emerging fraud campaigns.

Sources

This report draws on statements made by Baiba Kaškina, head of Cert.lv, in a December 16th interview with Latvian Television's "Morning Panorama," and comments from Mārcis Pelcis, head of SEB Bank's Security Department, in an interview with Latvian Radio's "Good Morning." Information about specific fraud operations comes from Cert.lv's documented cases of Road Traffic Safety Directorate impersonation scams. Additional context was provided by the Finance Latvia Association regarding ongoing industry efforts to combat financial fraud.