Euro Police Shut Down Four Call Centers Selling Cryptocurrency Investment Scam

Last week a joint task force from Bulgaria, Cyprus, Germany and Serbia made 15 arrests and raided 22 locations in an operation that disrupted a cryptocurrency investment scam. Fraudsters working from four call centers in Serbia targeted victims in Germany, Switzerland, Australia and Canada. The raids seized three hard drives containing a total of USD1mn in cryptocurrencies plus EUR50,000 in cash, three vehicles and various electronic equipment.

Advertisements on social networks would first draw victims to websites run by the scammers. These websites promised high returns to investors. Victims would be tricked into paying hundreds of Euros for bogus cryptocurrency investments which would then yield impressive returns, encouraging the victims to spend much more on further investments. Reports from German victims of the fraud indicate that they collectively lost EUR2mn to the scammers. Police believe there are still many unreported victims of this scam operation, and that the total losses may actually run as high as several hundred million Euros.

A Europol press release describing the operation can be found here.

Eric Priezkalns
Eric Priezkalns
Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.