Europol Busts €297 Million Fraud Network

Europol Busts €297 Million Fraud Network

Image: APA

 

Europol, in coordination with the European Public Prosecutor’s Office and law enforcement agencies from 16 countries, including Austria, has dismantled a major VAT fraud network, resulting in an estimated loss of €297 million.

The operation, codenamed “Admiral 2,” centred on the trade of popular electronic devices. Thirty-two individuals have been arrested, and authorities have seized luxury cars, millions of euros worth of electronics and nearly €130,000 in cash. Investigators also froze 62 bank accounts holding over €5.5 million. Further developments are expected in the coming weeks.

The network employed similar methods to those used in the previous “Operation Admiral,” which uncovered the largest VAT fraud in EU history, estimated to have caused €2.9 billion in losses.

The suspects, mostly from the Baltic States, set up 15 companies across EU member states, including Austria. They sold more than €1.48 billion worth of electronic devices through online marketplaces to customers across Europe. While customers paid VAT (value added tax), the selling companies failed to meet their tax obligations.

By allowing the companies to “disappear,” the criminals avoided paying taxes owed to national authorities. Other businesses in the fraudulent network then claimed VAT refunds, contributing to the €297 million loss. The proceeds were transferred to offshore accounts. The full financial impact in Austria remains under investigation.

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