Swiss police, Ukrainian, Georgian law enforcement identify suspected online fraudsters

By Timo Kirez

GENEVA (AA) - The Bern Cantonal Police, in cooperation with Ukrainian and Georgian law enforcement, succeeded in identifying a group of suspected online investment fraudsters, officials said Wednesday.

The perpetrators are said to have operated more than 100 allegedly fraudulent websites, the Bernese Public Prosecutor's Office said in a statement that indicated an extensive construct with shell companies, cryptocurrencies and associated bank accounts.

They are "boiler room scams," where investors are encouraged to invest with the help of advertisements and attractive and professionally designed websites.

The perpetrators attempted to persuade victims to supposedly invest in securities or cryptocurrencies, promising high returns within a short period.

The statement said some potential victims were also actively contacted by alleged financial or investment advisors, mainly by telephone or email.

The scam is said to have resulted in financial losses amounting to hundreds of millions across Europe with tens of thousands of victims. Authorities did not provide a specific figure.

The investigation began in October 2019 after a criminal complaint in Bern. The victim had registered on a trading platform, where someone contacted her by telephone.

There were indications that the alleged perpetrators operated a call center in Ukraine, where the Bern Cantonal Police contacted Ukrainian law enforcement.

In the course of the joint investigation, three other call centers in Ukraine were identified that presumably belonged to the same group.

But because of the war in Ukraine and due to a call center being relocated, the investigation had to be interrupted for some time.

After two additional reports of online investment fraud were received by the Bern Cantonal Police in 2022, the public prosecutor's office revealed that the suspects were now operating from Georgia.

In the first half of 2023, various investigative measures took place in Ukraine and Georgia, including house searches, arrests, seizures of computer systems and actions in the identified call centers.

Investigations are still ongoing, according to the public prosecutor's office, and it cannot currently be ruled out that the perpetrators are still active on a large scale.