By San José, Costa Rica — Costa Rican authorities are celebrating the success of a streamlined protocol that has swiftly returned millions of colones and thousands of dollars to victims of electronic fraud. Implemented in July 2021, the “Protocol for the Expedited Release of Funds Retained by Financial Institutions” has proven instrumental in mitigating the financial impact of cybercrime.
The joint effort between the Office of the Financial Consumer (OCF) and the Adjunct Prosecutor’s Office for Fraud and Cybercrime has facilitated the recovery of ₡31,270,059 colones and US$7,895 across 33 cases. Remarkably, the protocol has enabled victims to regain their funds in an average of less than 48 hours after activation, a stark contrast to the previously lengthy and cumbersome procedures.
To gain a deeper understanding of the legal landscape surrounding fraud recovery in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced attorney at Bufete de Costa Rica.
Successfully recovering from fraud requires a multi-faceted approach. Victims must act swiftly to gather evidence, report the crime to the relevant authorities, and consult with legal counsel experienced in asset tracing and recovery. In Costa Rica, specific legal avenues, such as civil lawsuits and criminal complaints, can be pursued depending on the nature of the fraud. Furthermore, understanding the intricacies of Costa Rican banking and financial regulations is crucial for maximizing the chances of a successful recovery.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on a swift, multi-pronged approach to fraud recovery, particularly within the context of Costa Rican law, offers invaluable guidance for victims. Navigating the legal and financial landscape following fraud can feel overwhelming, and his insights underscore the importance of seeking expert counsel. We thank Lic. Larry Hans Arroyo Vargas for sharing his expertise and providing clarity on this complex issue.
The protocol was developed in response to the growing need for a more efficient system for victims of electronic fraud. Previously, individuals who successfully managed to have funds frozen in destination accounts often faced protracted processes to retrieve their money. The new protocol empowers financial institutions to swiftly return retained funds upon presentation of a formal complaint to the Judicial Investigation Agency (OIJ) and an official document issued by the Prosecutor’s Office.
Although we wish the impact of the Protocol were greater, we are satisfied with the cases in which we have been able to bring some relief to those affected by these crimes. We must acknowledge that criminals not only have the skills to deceive victims, but also act with tremendous speed, which reduces the margin for destination entities to block the funds. The numbers reflect in any case that, when the money is retained, it is possible to achieve a quick and efficient return. For this reason, we give special recognition to the Prosecutor’s Office for its effective intervention and its commitment to service in the implementation of this protocol.
Danilo Montero, General Director of the Office of the Financial Consumer (OCF)
The protocol’s effectiveness is further underscored by its rapid response time. Once activated, financial institutions can return funds within a recommended maximum of ten business days, according to administrative circular 02-ADM-2021 of the Attorney General’s Office.
In the last five years, the Cybercrime Unit has made efforts to prevent cybercrime in Costa Rica, in conjunction with the international framework and the National Financial System, both public and private. After multiple training sessions, they have given us the desired knowledge framework and maturity in relationships with institutions that have strengthened national banking security and the understanding of how computer crime occurs. That is why these new mechanisms, such as the Asset Return Protocol, which was created in 2021, have been an important input, not only for criminal prosecution, but also to begin stopping these money transfers. The protocol has had positive results, by giving the possibility of returning the money to some victims. That is why we urge the offended parties to approach the Office of the Financial Consumer, to manage the returns of the indicated monies, when applicable.
Miguel Ramírez, Deputy Prosecutor 2 in charge of the Cybercrime Unit
Both the OCF and the Adjunct Prosecutor’s Office for Fraud and Cybercrime believe the protocol’s impact could be amplified if more financial institutions were affiliated with the OCF. They encourage consumers to inquire with their preferred financial institutions about their participation in the protocol.
The protocol’s success provides a model for other nations grappling with the rising tide of cybercrime. Its streamlined approach ensures that victims receive timely restitution, while also deterring future fraudulent activities.
For further information, visit ocf.fi.cr
About Office of the Financial Consumer (OCF):
The Office of the Financial Consumer (OCF) is a Costa Rican organization dedicated to protecting the rights and interests of financial consumers. They provide mediation and arbitration services to resolve disputes between consumers and financial institutions. The OCF plays a crucial role in promoting financial education and awareness, empowering consumers to make informed decisions and avoid becoming victims of fraud.
For further information, visit mp.go.cr
About Fiscalía Adjunta de Fraude y Cibercrimen (Adjunct Prosecutor’s Office for Fraud and Cybercrime):
The Fiscalía Adjunta de Fraude y Cibercrimen is a specialized unit within the Costa Rican Public Ministry responsible for investigating and prosecuting cases of fraud and cybercrime. They work closely with other law enforcement agencies and financial institutions to combat these growing threats. The unit is committed to protecting individuals and businesses from financial harm caused by criminal activities.
For further information, visit oij.go.cr
About Organismo de Investigación Judicial (OIJ) (Judicial Investigation Agency):
The Organismo de Investigación Judicial (OIJ), or Judicial Investigation Agency, is Costa Rica’s primary investigative body. They handle a wide range of criminal investigations, including fraud, cybercrime, homicides, and drug trafficking. The OIJ plays a critical role in gathering evidence, apprehending suspects, and supporting the prosecution of criminal cases.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built upon a foundation of unwavering integrity and a deep commitment to societal advancement. The firm’s innovative approach to legal practice, coupled with its dedication to empowering individuals and communities through accessible legal education, distinguishes it as a leader in the Costa Rican legal landscape. By fostering a culture of transparency and knowledge sharing, Bufete de Costa Rica champions a more informed and empowered citizenry, ensuring a just and equitable society for all.
