​​The “Maltese Shield”: Preventing Fraud in Estonia

In Estonia, fraudsters swindle residents out of millions of euros—and their tactics are becoming increasingly sophisticated. How can you protect yourself and your loved ones? The new “Maltese Shield” project brings together volunteers, banks, telecom operators, and government institutions to reduce financial risks and prevent losses among vulnerable groups. Learn how this system works and how you can help.

The Fraud Problem in Estonia

Large-scale financial losses caused by fraud remain an acute problem and require a systemic solution. Damage from various scam schemes targeting trusting residents of Estonia amounted to nearly €30 million last year, and by the end of the year, losses had risen to almost €1 million per week. If no action is taken, annual losses could exceed €50 million—a serious issue for such a small country.

Currently, fraud is countered by cumbersome structures with strict regulations and delayed response times, while criminals themselves are mobile and quickly adapt their tactics. Effective counteraction requires not only tougher criminal liability for those who knowingly participate in defrauding fellow citizens but also the introduction of coordinated protective measures.

In this context, Alexander Tsikhilov, Chairman of the Supervisory Board of the Order of Malta Foundation in Estonia, recently spoke with Rus.Postimees, outlining the current fight against fraud, existing protection methods, and how the new “Maltese Shield” project can unite the efforts of the state, banks, telecom operators, and volunteers to reduce financial risks for citizens. Below are the key points from his remarks.

Systems and Algorithms for Detecting Fraud

This problem is relevant worldwide. While fraudsters in Estonia initially targeted Russian-speaking audiences, they are now shifting to Estonian-speaking users; in Latvia and Lithuania, they target national-language speakers. The fight involves both technological solutions and public awareness efforts—without education and outreach, even effective technologies fail to deliver results.

“Anti-fraud mechanisms already exist: redirecting calls from unknown numbers to voicemail, AI-based message analysis, and multi-signature transaction authorization,” noted Alexander Tsikhilov.

Public education is especially important; otherwise, people may avoid subscribing to specially designed service packages offered by mobile operators or banks. Enhanced anti-fraud services can sometimes create inconvenience for customers.

AI and Fraud

Today, artificial intelligence is more often used by scammers: they create deepfakes, imitate the voices of relatives, and intensify psychological pressure on victims.

However, AI can also serve as a protective tool—for example, by analyzing calls from unknown numbers and warning users of potential fraud.

The effectiveness of such technologies is constrained by European data protection regulations, which were originally designed to protect citizens but now partially hinder efforts to combat fraud.

“A revision of EU regulations is needed, and at the Riigikogu level a full package of anti-fraud legislation must be introduced. Volunteers across Estonia should carry out awareness campaigns,” emphasized Alexander Tsikhilov.

Double Protection: How to Protect Elderly People from Fraud

The idea of introducing a second authorizer for transactions would allow elderly people to appoint a trusted relative who must confirm large transactions. This could block up to 95% of fraudulent transactions.

It is important that banks offer such service packages, that people understand their benefits and are willing to use them, and that these measures are supported at the legislative level.

A package of anti-fraud measures is currently being developed in the Riigikogu, including stricter liability for working in fraudulent call centers and mandatory implementation of protective mechanisms by banks and telecom operators.

Ahead of the holidays, a parliamentary group on countering phone-based cyber fraud was established to strengthen protective mechanisms.

Protective tools already exist. Voicemail can be activated with telecom operators when needed, and bank multi-signature authorization (currently used mainly for legal entities) can be adapted for private accounts.

Everything necessary is already in place—it only remains to reconfigure existing tools into new anti-fraud services.

Public Coordination and the “Maltese Shield” Project

At present, the main challenge is the lack of coordination and resources. A coordinating hub can operate on a voluntary basis—currently, the Order of Malta Foundation in Estonia fulfills this role by engaging the Riigikogu, police, banks, and telecom companies, as well as organizing volunteers to conduct outreach among vulnerable groups on phone-based cyber fraud.

The “Maltese Shield” project does not recover lost funds: most fraudulent call centers are located abroad. Its purpose is to reduce the risk of financial losses among vulnerable populations.

We work with social institutions: we hold educational meetings, help people set up their phones, explain types of fraud and safety rules, including the strict prohibition on sharing PIN codes. At the same time, we cooperate with public and commercial organizations to encourage the implementation of technological solutions and services that reduce fraud risks. 

We are able to disseminate information quickly through volunteer networks — this alone is already significant. If we manage to protect a certain number of people from financial losses, that will be a meaningful result.

Coordination and Collective Effort

Effective mechanisms already exist—they simply need to be integrated and activated. Banks see transactions, telecom operators see calls, and the police respond after the fact.

Therefore, information sharing is needed at all stages: prevention, coordination, and public education. The willingness to cooperate exists; what remains is to take the final step to launch the system, and the contribution of the Order of Malta Foundation in Estonia can significantly accelerate this process.

More than 250 volunteers are registered on our platform. We invite everyone who is ready to engage in awareness-raising activities on a voluntary basis. In the near future, we hope to build a team large enough to operate not only in Tallinn but also in other regions of Estonia.

Would you like to help vulnerable groups protect themselves from fraud? Join the “Maltese Shield” project: https://orderofmalta.ee/ru/dlya-volonterov/proekty/the-maltese-shield-volunteer