Ukraininan Bank Suspends Payment Services for 16 Fraudulent Online Merchants

Sept. 20, 2010

Pryvatbank, the largest commercial bank in the Ukraine, said it has suspended acceptance of online payments into the accounts of 16 Internet companies that have shown numerous signs of fraud. According to a Pryvatbank statement, the organizations in question are “network marketers” that involve collection of contributions for participation in a project that is dubious in nature. “For example,” the statement said, “one of the Internet companies collected the equivalent of $150 over two months from people seeking to participate in a training program and transferred the clients’ funds through payment systems on the Internet. However, no action was taken to organize this training during this period: there were no cooperation agreements, trainers or real coordinates for contacts.” Pryvatbank said that the other companies operated similar scams in the areas of medicine sales, tourism or other services.