A large-scale international operation has uncovered an alleged investment fraud network that operated through a company based in Israel and Cyprus, providing criminal organizations across Europe with the technological infrastructure needed to defraud investors, Walla learned on Thursday.
The operation was disclosed by Europol and Eurojust, two key European Union agencies responsible for combating crime and coordinating cooperation between law enforcement and judicial authorities.
The operation, led by German prosecutors, resulted in the arrest of seven suspects, searches at 17 locations, and the seizure of more than 100 servers allegedly used by the fraud network. Authorities also shut down websites used to deceive investors and seized additional evidence and assets. Authorities arrested the suspects pending extradition to Germany, where the investigation is underway.
Among the agencies involved were the Israel Police's National Cyber Unit within Lahav 433 - The National Crime Unit and the Legal Assistance Unit of the Intelligence Division. The coordinated operation took place simultaneously in Israel, Cyprus, Albania, Kosovo, North Macedonia, and Finland, in cooperation with German authorities.
At the center of the investigation is a company suspected of operating from Israel and Cyprus and providing criminal organizations with ready-made fraud services. Investigators describe the model as "Crime as a Service." Rather than requiring each criminal organization to develop its own technological infrastructure to defraud investors, the company allegedly acted as a criminal contractor, supplying digital tools, including fake trading websites designed to resemble legitimate investment platforms.
According to investigators, the company's clients operated call centers in Albania, Kosovo, and North Macedonia, where employees posed as brokers and investment advisers. They persuaded victims to transfer money for supposed investments in cryptocurrencies, foreign currencies, and stocks, promising high returns in a short period.
Investors defrauded after gradual increase in trust
The fraud relied on gradually building victims' trust. Investors were initially asked to deposit relatively small amounts, after which fictitious profits appeared in their accounts. Once they were convinced their investments were performing well, the scammers used psychological pressure to persuade them to deposit larger sums. When victims tried to withdraw their money, they faced excuses and delays until communication with the operators eventually stopped.
According to Europol, the network also used misleading online advertisements to identify potential victims. The personal details of individuals who expressed interest were transferred or sold to those operating the fraudulent call centers, whose employees then contacted them and spent prolonged efforts persuading them to invest.
Investigators estimate that the operation targeted potential victims in more than 50 countries and caused financial losses exceeding €4 million.
The investigation began after a German couple filed a complaint, reporting that they had invested their savings through an online trading platform only to discover that they could not withdraw their money.
Their complaint led investigators to uncover an international network and conduct previous law enforcement operations in 2022 and 2025. Analysis of evidence collected during those operations eventually led investigators to the company allegedly operating from Israel and Cyprus and helped establish its connections to the fraudulent call centers in the Balkans.
Three additional suspects extradited to Germany, receive prison sentences
According to German authorities, seven people holding positions within the company have been identified as suspects, while six additional suspects linked to the operation of the fraudulent call centers are also under investigation.
Three suspects arrested earlier in the investigation have already been extradited to Germany and sentenced to prison terms ranging from three to five years.
Israel's involvement is particularly significant because the investigation focuses not only on the fraudulent call centers operating in Europe but also on the company suspected of supplying their technological infrastructure from Israel and Cyprus.
However, European and German authorities have not disclosed the company's name, the identities of its owners, or the identities and nationalities of the seven people arrested.
Follow us on GoogleSource: The Jerusalem Post · YOAV ETIEL
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