Europol dismantles an international network of crypto scammers with $5,7 million in damages

Key points:

• Europol and Eurojust dismantled a Latvian crypto fraud network that operated across Europe and caused $5,7 million in damages.
• As part of Operation SIMCartel, servers and tens of thousands of SIM cards were seized, and bank and crypto accounts were frozen.
• Investigators are determining whether cryptocurrencies were used to launder money or were part of the scam itself.

Europol has cracked down on a cryptocurrency fraud scheme estimated to have caused $5,7 million in damages. The criminal network, based in Latvia, used millions of fake online accounts to defraud users across Europe.

Source: x.com

The operation, codenamed SIMCartel, was carried out on October 10 with the participation of the authorities of Austria, Estonia, Finland, Europol, and Eurojust. Law enforcement officers shut down five servers and seized 1200 SIM boxes and 40 000 active SIM cards.

Two fraudulent websites, gogetsms(.)com and apisim(.)com, were also taken under control. In addition, 431 000 EUR in bank accounts and $333 000 in cryptocurrency accounts were frozen. During the operation, law enforcement agencies seized four luxury cars.

How the scheme worked

Europol said the group was professionally organized, had a sophisticated website, and an efficient logistics system. The scheme was linked to at least 1700 cases of digital fraud and stole at least 4,9 million EUR from victims in Latvia and Austria alone.

The GoGetSMS website was positioned as a way to obtain “fast and secure temporary phone numbers.” The scammers offered to monetize existing SIM cards, turning them into “powerful assets for generating passive income” using their “specialized software.” Users transferred money but did not receive any services.

The service allowed the creation of more than 49 million fake accounts, which were used for phishing, smishing, and financial fraud. The attackers used various tactics, from posing as relatives or law enforcement officers to fraudulent transactions and even distributing child exploitation material for blackmail purposes.

Europol is continuing its investigation. Investigators are trying to determine whether cryptocurrency was a tool for money laundering or a direct part of the scam.

Recently, a series of operations against international crypto fraudsters has been carried out around the world. Thai police, in cooperation with South Korea, arrested 25 members of the Lungo Company group accused of romantic and investment scams worth $15,1 million. The investigation established that the criminals used cross-chain transfers and illegal OTC brokers to cover their tracks.

In the US, the Colorado Bureau of Investigation is pursuing a case involving the theft of $1,4 million from a local resident who fell victim to a “romance” crypto scam. Similar schemes have been uncovered in Australia and California, where criminals defrauded investors through social networks and dating apps.

According to analysts, romance scams and crypto investment scams are becoming one of the fastest-growing types of financial crime, which explains the growth of international operations such as SIMCartel.