menu

Homepage > News > Forces operation in Bulgaria, Cyprus and Ukraine. Europol breaks down the network of fraudsters.

Forces operation in Bulgaria, Cyprus and Ukraine. Europol breaks down the network of fraudsters.


The authorities of Germany, the Netherlands, Bulgaria, Cyprus and Ukraine carried out a coordinated action against a bogus investment platform that defrauded at least EUR 15 million. Europol and Eurojust supported the operation.

During the action day, announced on Monday, eight locations were searched, 17 people were questioned, and the main suspect was arrested. He founded the bogus investment platform that defrauded German clients’ money by imitating trading in the Forex and binary options markets. Although losses over EUR 15 million are known, investigators estimate that the final size of the damage suffered by investors could be in the order of EUR 0.5 billion.

More than 250 domain and server names and social media advertising were used to conduct the scam, leading to a bogus investment platform. German-speaking employees of boiler rooms (dishonest call centres) located in Bulgaria, Cyprus and Ukraine were responsible for contacting the victims.

A diagram of how a fake broker works

When an investor registered on the site, he was called by people claiming to be financial advisors and encouraged to donate as much money as possible. The client watched his capital grow, but these were only data provided by the platform operators. The trouble started when the victim wanted to pay out his bogus profits. Then there were alleged delays in transfers and disposing of excuses, and contact with the company became more and more difficult until it finally broke off.

To undertake the scam, the call centre employees had scripts containing predefined conversations and key messaging to convince clients to release more funds. However, a subsequent investigation suggests that most of the employees were not aware that the company they were working for was involved in a fraud scheme. Initial profits shown in the user interface encouraged the clients to invest large sums of money. However, clients did not receive payment of their winnings or credit balance once they requested it. – Europol commented.

Eurojust set up a coordination centre and assisted in exchanging information between the services of the countries involved in the investigation. Europol supported officers who took part in the operation on the ground. Law enforcement and prosecutor’s offices from Germany, the Netherlands, Ukraine, Bulgaria and Cyprus participated.

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

fxcm broker

FXCM expands its offer with CFDs on French, German and British stocks

The FXCM broker yesterday announced a significant strengthening of the offer on CFDs on stocks ...
Read More
ASIC Australia

The CFD product intervention in Australia will last until 2031

As expected, the Australian financial regulator ASIC proposed an extension of product intervention in the ...
Read More
Weekly news summary

ForexRev: weekly summary [11.10 – 17.10.2021]

Last week's review: Deutsche Bank sued EUR 500m for selling risky FX instruments; ASIC is ...
Read More
tradingview has a capitalization of around 3 billion

TradingView has raised funding of $298 million

TradingView, one of the world's most popular charting platforms for investors and traders, reported raising ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top