Call center fraud: international criminal scheme uncovered in Georgia

Crime ring uncovered in Georgia

The Prosecutor General’s Office of Georgia, in cooperation with seven countries, has identified an international criminal ring. According to the prosecutor’s office, the scheme was carried out in three countries and had to do with fraudulent call centers. At a special briefing, a representative of the Prosecutor’s Office of Georgia explained that the large-scale bust, during which one foreign citizen was arested in Georgia, hundreds of law enforcement officers from Germany and Georgia.

According to the prosecutor’s office, agents of the German police, the prosecutor’s office and the investigative service of various departments of Georgia carried out investigations in dozens of Georgian cities.

“We searched five so-called call centers, dozens of employees of these centers, their apartments, cars and offices. Hundreds of electronic devices, documents and a large amount of cash were seized. Electronic information was requested from dozens of devices. Property allegedly obtained by criminal means and funds in bank accounts have been seized.”

A case was also opened against one of the suspects involved.

The prosecutor’s office emphasizes that, based on information received by the investigation, the activities of the criminal group include the creation of companies in different countries, including Georgia.

“They embezzled millions of euros from EU citizens, including Germany. The money was laundered through the call centers,” the report says.

Hundreds of branded electronic trading platforms were created to operate the call center, which handled the fraudulent placement of funds received from customers into the bank accounts of fictitious companies.

“The German investigation, as well as with the competent authorities of the countries participating in the international investigation, will continue cooperation in order to expose other persons involved in the activities of the group,” the Prosecutor General’s Office said.

Crime ring uncovered in Georgia

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What is a call center?

In Georgia, the opposition and the authorities have long accused each other of involvement in the organization of call centers. Georgian Prime Minister Irakli Garibashvili named high-ranking official of the previous government David Kezerashvili and one of the leaders of the largest opposition National Movement party Levan Khabeishvili as involved in this criminal scheme.

Citizens living in different European countries are the targets of the call centers. People posing as employees of call centers contact citizens of Germany and other countries, give them false information about the location of their company, and offer to participate in electronic trading in securities, commodities, currencies and cryptocurrencies on fictitious electronic platforms.

Operators assure their targets of huge profits. After obtaining the consent of the user, the funds allocated for electronic commerce are placed on the bank accounts of the criminal group.

After that, the funds are transferred to the accounts of companies based abroad, and then to the accounts of their own companies in Georgia — as if in exchange for services rendered.

Under this scheme, criminals laundered illegal proceeds in the amount of 9,490,991 euros, 716,642 dollars and 218,000 British pounds in 2021. The prosecutor’s office made an official statement about the disclosure of a transnational crime. According to the prosecutor’s office, citizens of Georgia and Israel took part in the formation of the criminal group.