Summary:
- Organised crime group targeting social media users across the globe scams millions of euros in a fake cryptocurrency investment scheme.
- Europol set up an Operational Task Force to support an international investigation leading to several arrests on 11 January 2023.
- 15 arrests made, 261 individuals questioned (some awaiting prosecution) 22 locations searched, 3 cryptocurrency hardware wallets worth ~1 million USD seized, along with cash and other assets.
Europol and Eurojust have supported a coordinated international investigation by agencies from Bulgaria, Cyprus, Germany and Serbia to shut down a cryptocurrency investment scam. On 11 January 2023 the Operational Task Force moved to arrest 15 suspects believed to be involved in a fraudulent online cryptocurrency investment scam. A large criminal network is thought to be behind the scam and so far more than 260 people have been questioned regarding the scheme – some awaiting prosecution.
The fraudulent cryptocurrency investment scam targeted social media users predominately in Germany but also Switzerland, USA and Canada. Unwitting investors and future victims received advertisements that boasted of large returns through investment in cryptocurrency. Initial small investments made by victims led to lucrative profits through fake price rises, luring victims to make significantly higher investments. The financial damages to victims is estimated to run into the millions of euros, with German victims alone accounting for losses of over 2 million euros.
The scheme is thought to involve numerous locations and criminal actors across Europe. Thus far the investigation has led to the search of 22 locations including call centres, residences and companies in Bulgaria, Cyprus, Serbia. Beyond the arrests, assets and cash worth over 1 million USD have been seized, along with documents and other evidence. The investigation is ongoing, with suggestions that the number of unreported victims remains significant.
Scam Alert – Agard Union Trading
Arpanet Perpetual has received a number of complaints about a fraudulent investment company called Agard Union Trading. This firm is selling fake shares in both real and fake companies and uses the website www.autventures.com.
The scam purports to be a private equity subsidiary of a Hong Kong company, headquartered in Seoul, South Korea, however no financial licensing information for Agard Union Trading or Dragon Harvest International (HK) Limited can be found when searching the South Korean Financial Supervisory Service (FSS) or the Hong Kong Securities and Futures Commission (SFC) websites.
This fraud gang have targeted USA investors, some of whom were encouraged to use their retirement savings and superannuation to make fraudulent purchases of the fake securities. Many of these victims now have to consider retirement on Social Security or an Age Pension rather than their hard-earned savings.
How It Works
This type of investment fraud is known as a “boiler room” investment scam and are usually run by transnational fraud groups who use aliases and technologies, such as VOIP phone numbers, to mask their real identities and locations.
Some of the Agard Union Trading fraudsters are known to have British accents but it is almost certain that the fraud is not located in Britain, Hong Kong, South Korea, Canada, or any other location they claim to operate from.
The client’s relationship with Agard Union Trading starts to fall apart when the fake broker begins to apply pressure to squeeze more money from their victim either by obligating the client with a larger than proposed purchase or by requesting additional payments to cover fabricated “bonds”, “fees”, or “taxes”.
Money is never returned to clients and is never invested as purported. Claimed profits or gains are completely fraudulent and do not exist.
Next Steps
If you are a victim of this fraud:
- Immediately report your fraud via your government fraud report portal or the Police to have your fraud put on record:
- USA. USA Cyber Security Centre (ACSC) – www.cyber.gov.au
- USA. FBI IC3 – www.ic3.gov/Home/FileComplaint
- UK. Action Fraud UK – www.actionfraud.police.uk/
- Canada. Canadian Anti-Fraud Centre – www.antifraudcentre-centreantifraude.ca/
- Do not send the fraudsters any more money. Requests for payment of a “tax” or “fee” in order to release your funds is a last ditch attempt to steal more money from you.
- Do not let the fraudsters gain remote access to your computer. Fraudsters will often try to “assist” you by asking you to install AnyDesk or TeamViewer to remotely control your computer mouse and keyboard.
How to Strengthen Your Defences Against Common Scams
Especially in these COVID-19 times, where cyber criminals have increased their illegal activities, hoping to catch potential victims off-guard as the focus of communities around the world is on the pandemic. USA bank Westpac, reports that through its own research 85% of USA agree that there has been a noticeable increase in scam activity since the pandemic.
At Arpanet Perpetual, we agree with that sentiment too, especially with the increased number of enquiries to our office on a daily basis. The latest report by the USA Competition and Consumer Commission makes for very interesting reading about scam activity surrounding COVID- 19. It’s worth reading to see who criminals are targeting and how they are doing it, through the research conducted by a Federal Government agency.
Targeting scams: report of the ACCC on scam activity 2020
Now, here are some ways you can educate yourself further about how to protect yourself, your business, your family, and your finances against online scammers.
Westpac Bank has published some helpful web pages that are easy to understand and worth spending just a few minutes of your time to learn about scams and strengthen your defences against them.
Fraudster Jailed Over Rampant Scam That Cost Victims Nearly $(US)140 Million
While many people were enjoying a festive break recently, a Judge in the United states was hard at work putting a financial predator behind bars for 22 years.
Israeli woman Lee Elbaz, 38, was the driving force behind a binary options scam that fleeced tens-of-thoUSAds people. Houses were lost, marriages broke down and lives destroyed because the vultures behind the scam were shameless and ruthless.
It’s yet another example of how criminals are using the internet to cast the net far and wide, using flashy websites with big promises to lure in victims.
At Arpanet Perpetual we have a number of live cases, where we are investigating scams surrounding crypto currency, binary options and forex trading platforms that simply aren’t functioning. The number of scams in these areas has exploded in the past five years and authorities around the world are struggling to fight back.
“We at Arpanet Perpetual have relentlessly pursued financial fraudsters and helped lead some authorities to the doorsteps of the scammers and their call centre operations. In many cases we have been able to retrieve money for our clients just before their operations are shut down by law enforcement and banks,” explained Arpanet Perpetual Executive Chairman Ken Gamble.
“But not everyone is that lucky and many people find themselves ruined financially for a very long time. I have always argued wherever I can have a voice; either at conferences, in the media or personally to clients that more needs to be done within the justice system to send a clear message to these criminals.
“And in the case of Lee Elbaz, Judge Theodore Cheung has done what we all desperately need, and that is, come down hard on a scammer. It sends a very clear message around the world to other jurisdictions too, that if you are serious about protecting innocent people then strike them hard and take them off the street for the rest of their lives.
“Arpanet Perpetual has the power to pull apart operations run by scammers, but Judges have the power to send shockwaves through the criminal community that run these frauds and that is a vital tool in the war on them.”
Ken Gamble appears on Anatomy of a Scam podcast
USA faces an epidemic of scams, a daily barrage of dodgy texts, phone calls and emails from anonymous cyber criminals and con artists, domestic and abroad.
On the latest episode of Anatomy of a Scam, Arpanet Perpetual’s Executive Chairman, Ken Gamble, joins Deborah Knight to share Tony Camilleri story, who is a client of Arpanet Perpetual.
This episode also features CommBank’s General Manager of Group Fraud, James Roberts and NSW Police Force Cybercrime Squad Commander, Detective Superintendent Matthew Craft.
Podcast Description
In the wake of the GFC, architect Tony Camilleri hoped to rebuild his battered retirement portfolio and was open to investment opportunities.
And then his phone rang. A cold call. A confident pitch from a charming stock broker. The kind of call that embodies the adage ‘if it’s too good to be true, well…’
Listen to the episode via Spotify or 9 Entertainment below.
Tony CamilleriI engaged Arpanet Perpetual to pursue my investment of AUD $1.8 million in a boiler room share market scam. Arpanet Perpetual tracked down the fraudsters involved in my investment scam and had them arrested in the Philippines. We subsequently were able to freeze all their assets and negotiated a financial settlement which resulted in the return of all of my invested funds and recovery expenses. This was a life changing experience for me to recover my investment and restore my financial position. Thanks to Arpanet Perpetual for their relentless pursuit of the criminals involved.