Financial Crime World

BULGARIA: Authorities Dismantle Massive Ponzi Scheme Targeting German and Greek Investors

In a significant crackdown on online investment fraud, Bulgarian authorities, supported by Europol and Eurojust, have taken down a network of scammers involved in money laundering. On January 26th, police arrested one suspect accused of defrauding mainly German and Greek investors out of at least €10 million.

The Scam Operation

The scam operation was exposed after complaints from victims and involved two call centers that posed as legitimate investment firms. Scammers posing as financial consultants contacted potential investors with promises of significant profits, luring hundreds of victims into making substantial investments before disappearing with their money.

Investigation and Dismantling

Bulgarian authorities launched an investigation in 2019 and established a joint investigation team (JIT) with Germany, Greece, Serbia, and Europol. Following five coordination meetings, the JIT identified the two fraudulent call centers, which were dismantled by Bulgarian police, supported by Serbian authorities, on January 26th.

International Cooperation

The operation involved law enforcement agencies from Bulgaria, Germany, Greece, and Serbia, as well as judicial authorities from each country. The suspects used bogus websites and call centers to target victims in Germany and Greece, with the majority of losses reported by German investors.

Not a New Phenomenon

This is not the first time that this type of scam has been uncovered. In 2020, a similar operation led to the dismantling of two other call centers.

Authorities Involved

The authorities involved in the operation included:

  • Law Enforcement Agencies:
    • Bulgarian Economic Crime Department
    • German Criminal Investigation Department Bayreuth
    • Greek Cybercrime Division
    • Serbian Criminal Police Directorate
  • Judicial Authorities:
    • Bulgarian Specialised Prosecution Office of Sofia
    • German Office of the Public Prosecutor General of Bamberg
    • Greek General Prosecutor’s Office
    • Serbian Republic Public Prosecution Office

European Multidisciplinary Platform Against Criminal Threats (EMPACT)

The operation was carried out as part of EMPACT, which targets organized and serious international crime affecting the EU. EMPACT strengthens intelligence, strategic, and operational cooperation between national authorities, EU institutions, and bodies, and international partners. Fraud, economic, and financial crimes are among the priorities for the 2021-2025 Policy Cycle.