Estonian defense investment agency lost nearly €60,000 to fraud two years ago
Estonia's Center for Defense Investments (RKIK) lost almost €60,000 to an email fraud in 2024. Police closed the case without identifying the culprits, and it only became public this week.
The Estonian Center for Defense Investments (RKIK) lost nearly €60,000 to fraudsters two years ago, according to Delfi. Police closed the case without identifying those responsible, and the public learned of it only this week.
How such scams work
Helena Jürgenson, an analyst at the Estonian Information System Authority (RIA), said that falling victim to business email fraud reveals a lot about an organization's processes and security. In her words, criminals invest considerable effort in these schemes: they take over an email account, watch the correspondence for a long time, and swap an invoice at the right moment.
Explanations from the former and current heads
Magnus-Valdemar Saar, who led RKIK when the money was lost, said he could not recall the company's name and could not look it up. He said the department head and chief financial officer involved still work at the agency. Saar stressed that invoice handling was already fairly technical before the incident, with around six pairs of eyes checking it. He also recalled informing then-Defense Minister Hanno Pevkur, though they did not discuss it in depth. According to Saar, the investigative authorities were notified, a criminal complaint was filed, and RKIK has since introduced additional invoice processing procedures.
Current RKIK director Elmar Vaher, a former police chief, said he learned of the matter only a few days ago. He has not questioned the staff involved, since police had already done so, and said he has no reason to doubt Saar's account.
Wider context
RKIK has already faced scrutiny over a multi-million euro munitions procurement for Ukraine. In 2024 it signed four contracts with Datasel, an Italian firm owned by India-based Neco Defense Munitions, and paid roughly €70 million in advance for artillery shells. None were delivered, the contracts were terminated, and the state is seeking the money through Estonian courts and Swiss arbitration. The scandal contributed to Pevkur's resignation as defense minister on September 2.
In the first six months of 2026, Estonian police received 1,816 reports of telephone and online scams, with total losses of €13.2 million.
