April 2023 - investment scams/arrestments  

Europol Nabs 5 in EUR 89M Online Fraud: Luxury Items Seized

European authorities have successfully apprehended five high-profile suspects in a recent joint law enforcement operation targeting online investment fraud networks across multiple locations.During the two-day cross-border operation led by German authorities, fifteen locations were searched, including five illicit call centers located in Bulgaria, Romania, Georgia, and Israel.

This operation received support and coordination from Eurojust and Europol, which had been involved in the planning since January 2023. Germany deployed 33 police officers to these foreign countries as part of the operation.The police seized various luxury items, including high-end watches, electronic devices, cash, Bitcoins, and payment cards suspected to be linked to the proceeds of online fraud.This action comes as a follow-up to the 2021 crackdown in which Europol agents arrested 15 suspects in Serbia and Germany and questioned 261 others in Serbia, Germany, Bulgaria, and Cyprus.

The evidence gathered during the 2021 operation played a crucial role in uncovering new information that led to the recent arrests. The scale of the online investment fraud scheme appears to be more extensive than initially estimated.

Online Scam Exposes Massive Financial Damage: 33,000 Victims

While the financial damage was initially assessed at least EUR 15 million, the latest information indicates that the criminal network behind the fraudulent scheme has caused significantly more financial harm, affecting a larger number of victims. The online investment fraud scheme victimized around 33,000 investors, resulting in losses of approximately €89 million ($98 million).

The modus operandi involved luring victims through social media and web banner ads, encouraging them to make small initial investments ranging from $200 to $250 with promises of substantial returns. Subsequently, victims were contacted by fictitious "personal financial advisors" who pledged even higher profits on more substantial investments. However, these larger investments were ultimately lost, with the illegal profits directed to the perpetrators' bank accounts.

The alleged scammers operated from numerous call centers between 2019 and 2021, with the most recent ones established in Bulgaria and Romania. The fraud masterminds employed over 100 call center operators and registered more than 250 domains to promote their deceptive schemes.It's noteworthy that many call center employees seemed unaware of their involvement in an alleged online investment fraud scheme. A subsequent investigation suggested that most employees were oblivious to the fraudulent activities of the company they worked for.