Authorities carried out coordinated searches in six countries on Tuesday as part of an international investigation into an alleged investment fraud network that deceived victims with fabricated profits. The operation took place in Israel, Albania, Finland, North Macedonia, Kosovo and Cyprus.
Seven suspects were arrested, while more than 100 servers were seized and numerous fraudulent websites were shut down, the Schleswig-Holstein State Criminal Police Office in Kiel and the Itzehoe Public Prosecutor’s Office announced.
How the alleged investment fraud worked
According to investigators, the operation forms part of a long-running investigation into a network suspected of defrauding people in Germany and other countries over several years, causing losses worth millions of euros. Authorities have not disclosed a precise estimate of the financial damage.
Investigators say the suspects targeted people online who were looking for investment opportunities and directed them to trading platforms operated by the network.
Victims were shown fabricated investment profits and encouraged to deposit additional funds. When they attempted to withdraw their money, the suspects allegedly used delaying tactics before eventually cutting off contact.
The latest operation focused on a company based in Israel and Cyprus that is suspected of operating fraudulent websites and money-laundering networks on behalf of various criminal groups.
Seven people suspected of being responsible for the company are under investigation. Authorities are also investigating six additional suspects who allegedly operated call centers in Albania, Kosovo and North Macedonia as clients of the company.
How the investigation began
Investigators traced the company through evidence seized during an earlier operation targeting the suspected fraud network in May last year. At that time, searches were carried out in Israel, Albania, the United Kingdom and Cyprus.
According to Tuesday’s announcement, three suspects identified during the previous operation have since been extradited to Germany and sentenced to prison terms.
The wider investigation began after a couple from the outskirts of Kiel, the capital of Schleswig-Holstein, filed a criminal complaint.
A first major operation to secure evidence was conducted in September 2022. Europol, the European Union’s law enforcement agency, and Eurojust, the EU agency for judicial cooperation in criminal matters, have also supported the investigation.
The latest coordinated raids mark another step in efforts by European and international authorities to dismantle the suspected network and identify those involved in the alleged fraud and money-laundering activities.
