Ukrainian authorities have successfully collaborated with law enforcement agencies across Europe to dismantle a major online fraud operation that has caused an estimated $200 million in losses. The operation, which involved the Cyber Police Department, Main Investigative Department of the National Police, Office of the Prosecutor General, and Europol, resulted in the arrest of five Ukrainian nationals suspected of being part of the fraud gang.
During the operation, Ukrainian police raided the suspects’ homes and call centers in Kyiv and Ivano-Frankivsk, seizing 500 mobile devices and pieces of computer equipment. Simultaneously, authorities in other European countries, including Albania, Finland, Georgia, Germany, Latvia, and Spain, conducted similar raids on other members of the gang.
The fraudsters targeted unsuspecting investors, enticing them to invest in cryptocurrency, stocks, bonds, futures, and options with promises of high returns. However, victims were unable to withdraw their supposed profits, falling victim to the scam orchestrated by the group.
The fraud operation was supported by a network of call centers across Europe, with three located in Ukraine and approximately 2000 employees. The five suspects arrested were allegedly managers at these call centers, overseeing the fraudulent activities.
Investment fraud remains a lucrative scheme for cybercriminals, with the FBI reporting nearly $1.5 billion in losses from 20,500 cases last year. The crackdown by Ukrainian police comes after a previous operation in June, where nine individuals were arrested for phishing scams that defrauded locals of millions of hryvnias.
The arrested individuals will face trial under Part 3 of Article 190 of the Criminal Code of Ukraine, potentially leading to eight years of imprisonment for their involvement in the fraudulent activities. This successful operation highlights the commitment of Ukrainian law enforcement in combating online fraud and protecting individuals from financial scams.