6 October 2023 - Investment scams

International Crackdown: Organized Cybercrime Network Dismantled in €15 Million Binary Options Scam

On October 6, a collaborative effort involving law enforcement and judicial agencies from Bulgaria, Cyprus, Germany, the Netherlands, and Ukraine successfully dismantled an organized cybercrime network engaged in deceptive binary practices.

Following a comprehensive cross-border investigation, it was revealed that the perpetrators utilized 250 fraudulent domains, counterfeit social media accounts, and two call centers to deceive German investors into engaging with fabricated binary options—a form of options contract contingent on the outcome of a bet.

Operating with nearly 100 call center operators in Bulgaria posing as financial advisors, the group illicitly amassed over €15 million in gains over a two-year period.

Europol-Led Operation Unravels Deceptive Trading Platform Scam: 246 Proceedings Across Germany, High-Value Target Apprehended

The call center employees, for the most part, followed scripted conversations and key messaging to convince clients to release additional funds. However, subsequent investigations suggest that a significant number of employees were unaware of the fraudulent nature of the company, as indicated by a statement from Europol.

The cybercriminals lured victims into investing substantial sums by showcasing initial profits on the user interface of the deceptive trading platform. As anticipated, investors found themselves unable to withdraw any supposed 'winnings' from the deceitful website.The cross-border investigation yielded 246 criminal proceedings across 15 German federal states. Additionally, law enforcement authorities executed six house searches, conducted 17 interrogations, seized electronic equipment, bank accounts, and data backups, and apprehended a "high-value target" in Cyprus. Europol played a crucial role by deploying six experts to Bulgaria, Cyprus, and Ukraine.

These experts cross-verified operational information in real-time against Europol's databases and offered technical expertise to local law enforcement for the extraction of information from mobile devices and IT infrastructure.