European authorities have arrested five high-value suspects in a follow-up enforcement operation targeting online investment fraud dens in more than a dozen locations.

In a two-day cross-border operation launched by German authorities, police searched 15 locations, including five illegal call centres in Bulgaria, Romania, Georgia and Israel.

Since January 2023, Eurojustice and Europol have supported and coordinated the operation, with Germany sending 33 police officers to work on the ground in four countries.

Police seized luxury goods, including expensive watches, electronic devices, cash, bitcoin and payment cards suspected of being the proceeds of online fraud.

"Previously, the financial loss caused by the scam was estimated to be at least 15 million euros," Europol said in a press release. "However, according to the new information, the criminal network behind the fraudulent scheme caused greater financial losses and claimed more victims."

At least 33,000 investors fell victim to online investment fraud schemes, losing around 89 million euros ($98 million).

Luring victims through social media and online banner ads

According to Europol, online fraud plotters target victims through social media and online banner ads and lure them into investing small sums of $200 to $250 by promising huge returns.

After the initial investment, the victim is then contacted by the fake "personal financial advisor," who promises a bigger profit if the victim makes a larger investment. To seal the deal, they showed their victims fake pictures that suggested they were making huge profits.

Low interest rates at the time lured victims into risky financial investments. However, the money they invested went into the alleged scammer's bank account and the victim did not receive the profits or principal as required.

"This criminal network consists of many different criminals operating through call centers, luring victims to invest large amounts of money in fake cryptocurrency schemes."

It appears that most call center employees were unaware that their employers were allegedly involved in online investment fraud, "however, subsequent surveys showed that most employees were unaware that their companies were involved in fraudulent schemes."