The scale of investment scams in Europe

The threat to European small investors from online investment scams and international cybercrime organizations

The monthly damage currently caused to European small investors by fraud on online trading websites (hereinafter also referred to as broker scams or investment scams) in Europe is estimated at 1 billion[1] euros per month (!). This is only a rough estimate, since up to now – 10 years after the beginning of this type of crime – there has been no uniform collection of criminal complaints for this type of crime in the individual European countries.

This lack of uniform collection also hinders any central, efficient and effective prosecution of this type of crime within the individual European countries, not to mention a Europe-wide coordinated prosecution of these crimes.

This leaves European retail investors helpless at the mercy of the global mafia like-organised cybercriminals behind the hundreds of investment scams available on the Internet.

Fraudulent international criminal organizations, which have massive financial resources (12 billion euros* 10 years) at their disposal due to the long inactivity of the law enforcement authorities, are building up global organisational structures, deliberately exploiting the inability of the European law enforcement authorities to work across borders. These criminal organizational structures include online media houses, legal and illegal financial services companies, a booming boiler room industry and trading technology providers, as well as service providers such as lawyers and tax consultants who administer the countless shell companies involved. New Investment scams with new domains, supporting payment service providers and the appropriate boiler room support can be put by means of so-called white label solutions within 24 hours into the Web. read more

[1] This estimate is based on an average small investor deposit of € 1.700 and an average customer base of 9.500 per broker system.