EU probes firm supplying €4M fraud network with tech

German prosecutors coordinated a multi-country raid on Thursday to dismantle the technical infrastructure behind a European investment fraud scheme. Authorities in Israel, Cyprus, Albania, Kosovo, North Macedonia, and Finland simultaneously executed search warrants at 17 locations. The operation resulted in the arrest of seven suspects, all of whom are being held pending extradition to Germany.

Investigators determined that a company based in Israel and Cyprus provided criminal groups with pre-built digital tools for running scams. This business model allowed fraudsters to operate without developing their own technical systems. The package included fraudulent trading websites designed to mimic legitimate investment platforms. More than 100 servers connected to the scheme were seized during the raids.

The company’s clients operated call centers in the Balkans. Employees posed as brokers or investment advisers to recruit victims. They promoted investments in cryptocurrency, foreign currency, and stocks, promising high returns in short periods. Deceptive online advertisements also helped identify potential targets, whose personal data was then passed to call center operators.

Victims were initially asked to make small deposits. They were then shown fabricated profits in their accounts to build trust. This psychological pressure led many to invest larger sums. When victims attempted to withdraw their money, operators provided delays and explanations before cutting off contact. Europol and Eurojust disclosed that authorities estimate more than 50 countries were affected by the scheme.

The total estimated losses exceed €4 million. The inquiry originated from a complaint filed by a German couple who could not retrieve savings from an online platform. That report led to the discovery of a wider network and connected to enforcement actions in 2022 and 2025. Those earlier operations provided evidence linking the Israeli and Cypriot company to the Balkan call centers.

Three suspects previously detained in the investigation have already been extradited to Germany. They received prison sentences ranging from three to five years. Six additional individuals associated with the call centers remain under investigation. German authorities have not yet released the company's name, the identities of its owners, or the nationalities of the seven people arrested.