Berlin (Brussels Morning Newspaper) – German and Cypriot authorities blocked 13 fake investment platforms, arresting 4 suspects for defrauding €10 million.
German and Cypriot authorities have undertaken a coordinated procedure to block 13 fake investment platforms, with backing from Eurojust and Europol. During a joint action day in Cyprus and Germany, four suspects were apprehended for defrauding victims of millions of euros and for money laundering. The fraud was executed from a call centre based in Cyprus and deprived victims of at least EUR 10 million.
What methods did fraudsters use to deceive investors?
According to the European Union Agency for Criminal Justice Cooperation, the alleged perpetrators employed a well-known modus operandi: cybertrading. This method involves pledging high profits and drawing customers via professionally designed, credible websites and social media. They also managed a call centre where members of the organised crime group behind the deceitful sites posted as professional trading experts.
How did the fraudsters lure victims into cybertrading schemes?
About 170 German investors were enticed into making online transfers, without receiving any real returns on their investments. Instead, they were offered fake statistics indicating that they had made substantial gains. The victims of the fraudulent online system subsequently failed all their money. Initial calculations put the total loss at no less than EUR 10 million.
What role did Eurojust and Europol play in the operation?
The probe was opened at the start of 2024 by the Bavarian Central Office for the Prosecution of Cybercrime, which reached Eurojust in April. Eurojust helped to arrange a meeting in Cyprus between the German and Cypriot authorities to swap information and establish direct links.
The Agency also aided in the execution of European Investigation Orders and supplied background information and research documents. Europol helped the investigation by deploying an expert to Cyprus, during the collective action on 4 November. During the coordinated action in Germany and Cyprus, authorities probed 13 sites, captured 4 suspects, and confiscated cash, luxury watches and 2 cars.
