A web of fake online subscriptions, ranging from
dating to streaming services, has been exposed as the front for one of the
largest credit card fraud operations in recent years.
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Coordinated by Eurojust, the investigation reportedly culminated
this week with 18 arrests across Europe and North America, highlighting fake
websites, shell companies, and compromised payment platforms siphoned hundreds
of millions of euros from unsuspecting cardholders.
Targeting Digital Payments Systems
According to Europol, between 2016 and 2021, the
criminal network ran a sophisticated scheme that preyed on digital payment
systems. Fraudsters stole credit card data and created nearly 19 million fake
user accounts across 193 countries.
They reportedly charged small, recurring
payments—usually below €50—to avoid detection. Each charge appeared legitimate,
labeled vaguely to discourage scrutiny.
Investigators estimate that the fraud generated at
least €300 million in confirmed losses, with attempted fraud totaling more than
€750 million.
Europol confirmed that authorities carried out more than 60
house searches and executed 18 arrest warrants. The criminal groups are accused
of misusing credit card data belonging to over 4.3 million cardholders in 193
countries.
Europol provided critical support throughout the
investigation, which focused on 44 suspects from Germany and abroad. Those
targeted include individuals directly involved in the fraudulent schemes,
executives of German payment service providers, intermediaries, and
crime-as-a-service operators who supplied shell companies.
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Authorities say the perpetrators relied heavily on
corporate structures registered in Cyprus and the United Kingdom, designed to
obscure ownership and frustrate refund efforts. These shell companies were
often acquired through so-called “Crime-as-a-Service” providers, specialized
outfits that sell operational tools for criminal schemes.
A Coordinated Global Effort
The breakthrough came from Luxembourg, where the
Financial Intelligence Unit traced suspicious transfers linked to money
laundering and misuse of company funds. Investigators searched several
corporate offices and seized assets worth millions.
Luxembourg’s findings were later shared with Germany’s
Koblenz Public Prosecutor’s Office, where the two cases merged into a broader
European probe.
Crucially, information from a parallel investigation
in the United States, led by the U.S. Attorney’s Office for the Southern
District of New York, helped uncover the full scale of the fraud.
Authorities from more than ten countries—including
Germany, Cyprus, Luxembourg, Spain, the Netherlands, Canada, the UK, and the
United States—contributed to what officials describe as one of the most complex
cybercrime investigations ever executed in Europe.
Amid rising cases of fraud, CySEC was recently forced to suspend public access to its certification registers after discovering that scammers were
misusing the personal details of certified professionals to defraud investors.
The regulator explained that this precautionary measure is
intended to protect the integrity of the capital market and shield the public
from growing impersonation schemes targeting legitimate financial
professionals.
“To safeguard investor protection and ensure the smooth functioning of the capital market, CySEC announces that it has temporarily suspended the publication of the Certification Registers and the announcements of certification examination results on its website,” the agency said
This article was written by Jared Kirui at www.financemagnates.com.
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