An extensive network based in Georgia has scammed savers across the UK and Europe out of approximately $35 million, using manipulated celebrity endorsements and modern tech to execute their plans.
An extensive network operating from Georgia, a former Soviet republic, has engaged in a massive fraudulent scheme that has defrauded savers across the UK, Europe, and Canada out of approximately $35 million (£27 million). The scam relied heavily on deceptive advertisements featuring manipulated likenesses of celebrities, including money expert Martin Lewis, radio DJ Zoe Ball, and adventurer Ben Fogle, to promote fraudulent cryptocurrency and other investment opportunities.
The scale of the operation has resulted in UK citizens being among the hardest hit, with approximately £9 million lost, representing about a third of the total amount swindled. The operation was brought to light following the leak of a substantial cache of data from scam call centres, which was obtained by the Swedish public broadcaster SVT and subsequently shared with the Organized Crime and Corruption Reporting Project (OCCRP), The Guardian, and other international outlets.
Modern advancements in technology were exploited by scammers during this operation, with deepfake videos and fictitious news articles used to create authentic-looking advertisements. Despite the UK government’s introduction of new laws to enhance online safety, including measures targeting fraudulent advertising, these specific provisions are not expected to be enforced until next year.
The call centre operation, described as industrial-scale fraud, was purportedly headquartered in Tbilisi, Georgia, where around 85 agents were employed. It is estimated that over 6,000 individuals globally were drawn into the trap, with victims being contacted up until recent weeks. The leaked data, which comprises over a million recordings, provides revealing insights into the tactics employed by the scammers and the extent of psychological manipulation used to coerce victims into transferring funds.
One harrowing account involved a former NHS doctor in her 70s who lost approximately £50,000 and pleaded with the call centre, stating, “I’ve used up every penny of my savings, I have nothing. And I can’t survive like that. My brother is already asking me for the money I have borrowed from him back.” This victim passed away shortly after her last interaction with the fraudsters. Another individual, a retired London Stock Exchange employee, spent over 135 hours on the phone to the scammers and ultimately lost over £162,000.
The data leak further revealed that the fraud operation targeted nearly half of its victims in the UK, with calls placed to British numbers comprising 45% of their outreach efforts. Notably, the leaked documents included details of the financial gains enjoyed by call centre operatives, many of whom reportedly splurged on luxury items such as watches and expensive cars.
Prominent digital banks such as Revolut, Kroo, and Chase were frequently mentioned in the context of these scams, raising concerns about how online banking services are being exploited in fraudulent schemes. A spokesperson for Revolut reported that most reported scam cases originated on platforms owned by Meta, such as Facebook and WhatsApp. They noted, “60% of all reported scam cases originated on Meta owned platforms… yet these firms have no role in warning customers of such scams, nor reimbursing victims.”
Martin Lewis, Zoe Ball, and others have previously spoken out against the use of their images in misleading advertisements. Lewis, in particular, highlighted this issue in 2018 when he pursued legal action against Facebook. The case was later dropped after Facebook agreed to contribute to an anti-scam initiative.
Chi Onwurah, chair of the Commons science, innovation, and technology committee, indicated that the committee is currently examining the effectiveness of the Online Safety Act in addressing misinformation and online fraud. “Our inquiry has raised significant concerns about the effectiveness of the Online Safety Act… This case shows the urgency of addressing the shortcomings of the OSA,” she observed.
A government spokesperson reinforced the stance against scammers, stating they should face legal consequences, while also emphasising the responsibility of social media companies in preventing such fraudulent activities on their platforms. Meta, for its part, has asserted that running ads promoting scams violates its policies. Google has similarly expressed its commitment to user protection and adheres to stringent ad policies designed to mitigate fraudulent advertising.
The revelations around this vast scam operation have opened a dialogue about the efficacy of current measures to protect online users and the urgent need for proactive strategies to combat such sophisticated deception in the digital age.
Source: Noah Wire Services
- https://www.fbi.gov/news/stories/operation-level-up-how-the-fbi-is-saving-victims-from-cryptocurrency-investment-fraud – This article highlights the FBI’s efforts to combat cryptocurrency investment fraud, which is relevant to the sophisticated scams involving fake investment opportunities described in the article.
- https://www.ic3.gov/annualreport/reports/2023_ic3cryptocurrencyreport.pdf – This report from the Internet Crime Complaint Center (IC3) details the prevalence of cryptocurrency-related fraud, which aligns with the types of scams described in the article.
- https://www.theguardian.com/technology/2023/jun/21/online-safety-bill-uk-government-social-media-regulation – This article discusses the UK’s Online Safety Act and efforts to regulate online content, which is relevant to the government’s stance on combating online fraud mentioned in the article.
- https://www.revolut.com/blog/2023/02/protecting-against-scams/ – Revolut’s blog on protecting against scams highlights the role of digital banks in preventing fraudulent activities, similar to concerns raised about online banking services in the article.
- https://www.meta.com/policies/ads/ – Meta’s ad policies emphasize the prohibition of scam-related advertising, which is consistent with the company’s stance mentioned in the article.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative is recent, referencing ongoing events and investigations, with no clear signs of being outdated or recycled from older content.
Quotes check
Score:
8
Notes:
Quotes from Chi Onwurah and a government spokesperson are included, but their earliest online references could not be verified. However, they appear to be original to this context.
Source reliability
Score:
10
Notes:
The narrative originates from The Guardian, a well-established and reputable publication.
Plausability check
Score:
9
Notes:
The claims about the scam operation and its tactics are plausible, given the context of modern fraud schemes and the involvement of reputable investigative bodies.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative appears to be fresh and well-researched, with quotes that seem original to this context. The Guardian’s reputation as a reliable source further supports the credibility of the information. The claims are plausible and align with known trends in online fraud.
