Financial Investment Fraud: German Investigators Seize 1,400 Domains

1,406 active internet domains were seized by German and Bulgarian authorities at the beginning of October. The domains were used for fraudulent financial investment websites, but since October 3rd, they only redirect to a “Seized” page. This means the domains can no longer be used to commit crimes.

Scammers give trusting victims hope for good returns, often in the area of cryptocurrencies. The offers are advertised via messengers and through websites that appear legitimate. After registration, money can be deposited; often, supposed brokers also call to broker supposedly attractive “investments,” frequently under the pretense of time pressure or limited quantities.

The victims' “online accounts” soon show substantial profits after deposit, which do not actually exist. The deposited money is never invested; the account movements are faked. Sometimes, victims can even withdraw smaller amounts – a trick by the scammers to lure larger deposits. Often, victims don't notice for months and believe themselves to be wealthy.

At some point, the websites disappear. If “investors” want to withdraw substantial amounts beforehand, scammers may try to extract additional money, for example, with stories about fees or taxes due before payout.

Many Accesses

To curb this activity, the Cybercrime Center at the Public Prosecutor's Office Karlsruhe, the State Criminal Police Office Baden-Württemberg, and the Federal Financial Supervisory Authority (Bafin), in cooperation with Europol and Bulgarian law enforcement agencies, conducted Operation Heracles. The 1,406 suspicious domains were seized. In the ten days following the seizure, investigators counted 866,000 accesses to the domains.

Already in June, the same partners took nearly 800 domains offline that were used for cyber trading fraud at the time. Since then, 5.6 million user accesses have been counted. This indicates the scale of the problem.

“The perpetrators are becoming increasingly professional,” says Birgit Rodolphe, Bafin Executive Director for Resolution and Anti-Money Laundering. “They use artificial intelligence to create illegal websites as if on an assembly line and lure investors into traps with them. The financial supervisory authority is taking action against these unauthorized businesses in close cooperation with law enforcement agencies.” However, there has been no mention of arrests so far.

Bafin, the State Criminal Police Office Baden-Württemberg, and the Cybercrime Center recommend the following for particularly tempting offers:

• Thoroughly research the trading platform before registering or transferring money.
• Do not be pressured. Take your time to examine and evaluate the offer calmly.
• Do not disclose confidential data, such as online banking or securities account login details. Do not transmit copies of your identity documents or payment cards.
• Use the services of the Baden-Württemberg Consumer Advice Center or an independent financial advisor and have offers checked.
• File a criminal complaint in case of fraud.

• Bafin webpage “Investment fraud recognition”
• Police Criminal Prevention “Credit and Investment Fraud”

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