Operation Chargeback Cracks Fraud Rings

In a massive crackdown on international credit card fraud, Operation “Chargeback” has led to the arrest of 18 individuals linked to three major criminal networks. The operation, which spanned across 193 countries, has affected over 4.3 million cardholders, with damages exceeding EUR 300 million, according to the latest press release from Europol.

The operation, spearheaded by Germany’s Cybercrime Department and Federal Criminal Police Office, initiated in December 2020. Investigations uncovered extensive misuse of credit card data, with estimated attempted fraud reaching over EUR 750 million. The operation was significantly supported by Europol, playing a crucial role in coordinating the international effort.

Throughout the operation, more than 60 house searches were conducted, resulting in the seizure of significant assets and the freezing of over EUR 35 million in Luxembourg and Germany. The fraudulent networks allegedly created approximately 19 million fake online subscriptions to services like pornography, dating, and streaming to siphon funds from unsuspecting victims. These charges were cleverly hidden, using low amounts and vague descriptions to evade detection.

The criminals exploited the infrastructure of four major German payment service providers, processing illicit transactions and laundering money through numerous shell companies based primarily in the UK and Cyprus. These companies, complete with fabricated corporate structures and fake directors, minimized the risk of chargebacks and detection.

This international operation saw coordinated actions in countries including the USA, Canada, Singapore, Luxembourg, Cyprus, Spain, Italy, and the Netherlands. The success of Operation Chargeback underscores the importance of cross-border cooperation and the critical role of Europol in facilitating these efforts. Catherine De Bolle, Europol’s Executive Director, emphasized the operation’s demonstration of global cooperation against organized crime.

As investigations continue, further legal actions are anticipated. The suspects currently face charges including organized computer fraud, membership in a criminal organization, and money laundering.