Ecuador Sees Rise in Illegal Deposit-Taking Crimes, Concentrated in Sierra Region

A recent study, disseminated on September 18, 2026, by the Ecuadorian Observatory of Organized Crime as part of the Pan American Development Foundation's Project Crime-Lab II, sheds light on the landscape of illicit financing schemes in Ecuador. The study specifically analyzes illegal money collection and its relationship with organized crime, revealing key trends and geographical concentrations.

According to data from the Attorney General's Office (FGE), Ecuador registered 200 reports of possible illegal deposit-taking crimes in 2025. This figure represents a 31.6% increase when compared to 2019. Despite this overall increase from 2019 to 2025, the study also identified a sustained reduction in crime reports related to illegal deposit-taking between 2022 and 2025.

Illegal collection of money or deposits is characterized by the establishment of fictitious or front entities. These entities, operating without proper authorization, offer or promote financial services and receive money from individuals through fraudulent offers. The study details that these illegal schemes can manifest in various forms, including scams, pyramid structures, and even as fronts for money laundering operations.

Ecuador's legal framework addresses these illicit activities. Article 323 of the Organic Integral Penal Code (COIP) stipulates penalties ranging from five to seven years for individuals who organize, develop, and promote, either publicly or clandestinely, unauthorized financial intermediation activities. These activities are specifically defined as those aimed at habitually and massively collecting money from the public.

Geographically, illegal money collection shows a significant concentration within the Sierra region, particularly stretching from the center to the north of the country. In 2025, Pichincha province accounted for the largest share of cases, accumulating 57% of the national total. Chimborazo followed with 14.5%, and Cotopaxi with 9%.

However, when examining the rate of crime reports per 100,000 inhabitants, Chimborazo province ranked first with a rate of 5.95. Pichincha was next with 3.46, followed by Cotopaxi (3.45), Orellana (1.53), and Imbabura (1.2).

At the cantonal level, 2025 saw at least one complaint related to illegal money collection registered with the FGE in 32 of Ecuador's 221 cantons. Quito canton recorded the highest number of reports, with 111 cases. Riobamba followed with 26 cases, Latacunga with 14, and Cuenca with 7.

Further analysis of incidence in cantons with populations exceeding 100,000 revealed that Riobamba led with a rate of 9.5. Latacunga (6.1), Quito (3.9), and Francisco de Orellana (2) were also noted for their incidence rates.

What This Means for Expats

Expats residing in Ecuador should be aware of the prevalence and nature of illegal deposit-taking schemes. While there has been a recent reduction in crime reports between 2022 and 2025, the overall increase in reports from 2019 to 2025, coupled with the geographical concentration in certain Sierra provinces and cantons, indicates a persistent risk. The schemes often involve fictitious entities offering unauthorized financial services with fraudulent promises of high returns. Expats, like any resident, could be targeted by such schemes. It is crucial to exercise caution with any investment opportunities that promise unusually high returns or operate outside of established, regulated financial institutions. Verifying the legitimacy and authorization of any financial entity before entrusting funds is a critical step to protect personal finances. The legal penalties for involvement in such schemes, even unknowingly, can be severe for those who organize or promote them. Understanding that these activities are illegal under Article 323 of the COIP and carry significant prison sentences can help expats recognize and avoid participation in or falling victim to such operations. Awareness of the specific regions with higher incidence rates, such as Pichincha, Chimborazo, Cotopaxi, and cantons like Quito and Riobamba, can also inform expats about potential areas where such schemes might be more actively promoted.

Sources: primicias.ec.

Image: AI-generated illustration.