European police bust major online investment fraud ring
Amer Owaida, 13 May 2021
Europol and several national law enforcement agencies have teamed up to take down an investment fraud and money laundering ring that caused losses of approximately €30 million (US$36 million) to hundreds of victims, according to a press release by the European Union’s law enforcement agency.
The investigation led to the arrest of 11 suspects and involved the search of dozens of locations across Europe and Israel with law enforcement officers seizing a range of ill-gotten gains including jewels, real estate, high-end vehicles and some €2 million (US$2.4 million) in cash. The effort was spearheaded by German law enforcement authorities and supported by their peers from Bulgaria, Israel, Latvia, North-Macedonia, Poland, Spain, and Sweden.
How the fraud ring operated?
To dupe victims out of their money, the group set up an operation that consisted of at least four online trading platforms that promised significant profits from investments in cryptocurrencies and high-risk options to potential investors. Victims were lured to participate in these investments through advertisements posted on various social media platforms and search engines.
“The members of the criminal group were posing as experienced brokers when contacting the victims via the call centre they had set-up. The suspects were using manipulated software to show the gains from the investments and to motivate the victims to invest even more,” said Europol describing the scheme. The call centers operated by the criminal network worked out of Bulgaria and North-Macedonia.
