German and Cypriot authorities have launched a coordinated operation to block 13 fake investment platforms, with support from Eurojust and Europol.
Eurojust said in a statement on 7 November that during a joint action day in Cyprus and Germany, four suspects were arrested for defrauding victims of millions of euros and for money laundering.
The fraud was run from a call centre based in Cyprus and robbed victims of at least €10m.
The alleged perpetrators used a well-known modus operandi: cybertrading. This method involves promising high profits and drawing customers through professionally designed, credible websites and social media. They also operated a call centre where members of the organised crime group behind the fraudulent sites posted as professional trading experts.
Approximately 170 German investors were lured into making online transfers, without receiving any real returns on their investments. Instead, they were shown fake statistics indicating that they had made substantial profits.
The victims of the fraudulent online system subsequently lost all their money. Initial estimates put the total loss at no less than €10m.
The investigation was opened in the beginning of 2024 by the Bavarian Central Office for the Prosecution of Cybercrime, which contacted Eurojust in April.
Eurojust helped to organise a meeting in Cyprus between the German and Cypriot authorities to exchange information and establish direct links.
The agency also assisted in the execution of European Investigation Orders and provided background information and research documents. Europol supported the investigation by deploying an expert to Cyprus, during the coordinated action on 4 November.
During the coordinated action in Germany and Cyprus, authorities searched 13 locations, arrested 4 suspects, and seized cash, luxury watches and 2 vehicles.
The following authorities initiated and supported the coordinated actions on the ground: In Germany, the General Public Prosecutor’s Office Bamberg – Bavarian Central Office for the Prosecution of Cybercrime and the Criminal Police Inspectorate Amberg. In Cyprus it was the Cyprus Police.
