The law enforcement agencies across the globe coordinated a massive operation codenamed “Chargeback” targeting three major fraud and money laundering networks. Led by Germany’s General Prosecutor’s Office in Koblenz and the Federal Criminal Police, supported by Europol and Eurojust, the operation uncovered extensive misuse of credit card information affecting over 4.3 million cardholders from 193 countries, with estimated damages exceeding EUR 300 million.
Modus operandi
The multinational crackdown involved more than 60 house searches, 18 arrests, and asset seizures worth over EUR 35 million in Germany and Luxembourg. Among the suspects are fraud network operators, payment service executives, intermediaries, and crime-as-a-service providers behind sophisticated schemes exploiting legitimate payment systems.
Investigations revealed the creation of nearly 19 million fraudulent online subscriptions primarily on adult, dating, and streaming platforms. These sites operated covertly, avoiding search engine detection and charging low monthly fees disguised in obscure billing descriptions, making it difficult for victims to detect unauthorized transactions.
Involvement of payment service providers
Notably, the criminals used the infrastructure of four major German payment service providers, aided by colluding executives and compliance officers who enabled illicit transactions. To launder money and obscure trails, the suspects established numerous shell companies mostly in the UK and Cyprus using fake directors and forged documents supplied by crime-as-a-service providers.
The operation included coordinated actions in the USA, Canada, Singapore, Luxembourg, Cyprus, Spain, Italy, and the Netherlands, exemplifying unprecedented international collaboration. The ongoing investigation anticipates further arrests and legal actions, with charges including organized computer fraud, membership in a criminal organization, and money laundering.
