Seven arrested in probe of alleged fraud network operating from Israel and Cyprus
A German-led investigation alleges that a company supplied fake investment platforms to criminal groups targeting people in more than 50 countries.
By Isabella Kaur ·
Seven suspects have been arrested in an international investigation into a company allegedly operating from Israel and Cyprus that supplied technology to investment fraud networks across Europe. The operation, disclosed by Europol and Eurojust and reported by Walla on Thursday, November 5, involved searches at 17 locations and the seizure of more than 100 servers allegedly connected to the scheme.
German prosecutors led the coordinated action, which took place simultaneously in Israel, Cyprus, Albania, Kosovo, North Macedonia and Finland. Authorities closed websites allegedly used to mislead investors and seized other evidence and assets. The seven suspects were detained pending extradition to Germany. Israeli participants included the National Cyber Unit within Lahav 433, the National Crime Unit, and the Intelligence Division's Legal Assistance Unit.
Investigators suspect the company provided criminal groups with an existing package of digital tools, allowing them to run investment scams without building their own technical systems. These services allegedly included fraudulent trading websites made to look like legitimate investment platforms. Authorities describe the arrangement as a model in which a company supplies the infrastructure that other groups use to commit crimes.
According to investigators, the company's customers ran call centers in Albania, Kosovo and North Macedonia. Employees allegedly presented themselves as brokers or investment advisers and encouraged people to put money into purported cryptocurrency, foreign currency and stock investments. They promised substantial returns within a short time. Europol said deceptive online advertisements also helped recruit potential victims, whose personal information was passed or sold to call center operators for follow-up contact.
The alleged scheme cultivated confidence before seeking larger payments. Victims were first encouraged to make comparatively small deposits, then shown invented profits in their accounts. Believing their investments were succeeding, they faced psychological pressure to commit more money. Attempts to withdraw funds brought explanations and delays, investigators said, before contact with the operators ultimately ended. Authorities estimate that potential victims in more than 50 countries were targeted and that losses exceeded €4 million.
The inquiry began with a complaint from a German couple who said they had invested their savings through an online trading platform but could not retrieve their money. Their report led investigators to a wider international network and earlier enforcement operations in 2022 and 2025. Evidence gathered during those actions subsequently directed investigators toward the company allegedly based in Israel and Cyprus and helped establish its links to the Balkan call centers.
German authorities said seven people with roles in the company had been identified as suspects. Another six people connected to the operation of the call centers are also being investigated. Three suspects detained earlier in the inquiry have already been extradited to Germany and received prison sentences of between three and five years.
The investigation extends beyond those who contacted investors to the business suspected of supplying the underlying technology. European and German authorities have not released the company's name or identified its owners. They have also withheld the identities and nationalities of the seven people arrested.
