Authorities in Cyprus are believed to have raided at least one unregulated call center on Monday, multiple sources confirmed to Finance Magnates.
Details of the raid are yet to be officially confirmed. However, it is understood that the call centers were unregulated and targeting people with possible fraudulent investment schemes. The identity of the operation involved is, at this stage, yet to be disclosed, and it has been speculated that there have been at least two arrests made.
In addition, it is not clear if the raid was conducted by the local Cyprus police alone or with the collaboration of international agencies. However, sources told Finance Magnates that these call centers may have had a strong international presence, possibly in Australia, Germany and/or Canada.
A Hub for Brokers and Affiliates; Also Scams?
Cyprus is one of the most sought-after jurisdictions for forex brokers and affiliates who want to tap the European markets. The low entry barrier for obtaining a financial services regulatory license on the Mediterranean island has made it popular over other jurisdictions within the European Union.
The bust of fraudulent financial services selling tactics with call center operations, commonly known as boiler rooms, was also prevalent in Cyprus. Last October, authorities cracked down on massive forex and crypto investment scams that also led to arrests in Cyprus.
However, such organized scams are not just located in Cyprus. There have been a growing number of police raids on unregulated forex, binary options and crypto operations worldwide. Recently, the authorities in Moldova detained 24 people for running a forex investment scam and receiving deposits of more than €1.5 million. In Thailand too, the police arrested two dozen Chinese and Thai nationals for running forex scams.
Finance Magnates will update once further details are known.
