Eurojust Uncovers Major Online Scam Costing Victims Hundreds of Millions
In a significant crackdown on online fraud, authorities across Europe, led by Eurojust, have dismantled a large-scale scam that has defrauded victims of hundreds of millions of euros. The investigation, which spanned four years and involved German police and prosecutors, revealed that the fraud was perpetrated through sophisticated fake investment platforms that promised high returns on minimal investments. According to Eurojust, approximately 120 victims in Germany alone lost around €12 million, but the total fraud could reach between €300 million and €500 million globally.
The scam operated by creating credible-looking websites that lured investors, allowing perpetrators to access personal and banking information. Eurojust noted that some victims received minimal returns, while many received nothing at all. A joint task force with law enforcement from Cyprus and Serbia facilitated the raid of 22 locations in these countries, resulting in the arrest of a key suspect in Cyprus. Germany is expected to request the extradition of this suspect as investigations continue.
BNP Paribas Ordered to Compensate Victim of Telephone Scam
In a separate case highlighting the ongoing issue of fraud, the French Court of Cassation has mandated BNP Paribas to reimburse a customer €54,500 after he fell victim to a telephone scam involving a fake bank advisor. This ruling affirms a previous decision by the Versailles Court of Appeal, which found that the customer had not exercised serious negligence during the fraudulent encounter.
The victim, who reported the fraudulent transfers in 2019, was misled by a caller who spoofed the bank's official number, leading him to believe he was speaking with a legitimate bank employee. The court's decision underscores the importance of customer protection in fraud cases, especially as banks continue to enhance their security measures against such scams. BNP Paribas acknowledged the ruling and stated it would review the specific circumstances of the case.
As fraud continues to be a pressing issue, the Payment Methods Security Observatory reported that total damages from payment fraud in 2023 reached nearly €1.2 billion, with a significant portion attributed to user manipulation, including scams involving fake bank representatives. The banking sector has been urged to maintain vigilance and enhance customer awareness to mitigate these risks.
