A MULTI-NATION fraud operation run by a network of collaborators, including in Bahrain, has been smashed in a joint operation by the Spanish National Police and the US’ FBI.
A man has been arrested in Madrid, with Spanish authorities claiming that the alleged cyber fraudster defrauded American multinational companies to the tune of 2,500,000 euros (BD1,038,378).
The suspect has been detained and the police said his collaborators operated in Germany, Bahrain, Kuwait and in the US, according to a statement by the Spanish National Force.
The modus operandi consisted of impersonating identities – both physical and legal – to order dental products from companies that supplied this type of material, whose shipments were diverted to countries such as Bahrain or Kuwait.
The suspect carried out the scam by hiding his identity as he connected devices to public Wi-Fi networks in different hotels and lodgings to place the fraudulent orders.
He obtained information about dental clinics and their doctors across the globe through online, open source platforms and social networks.
This helped him know the main suppliers of the clinics who placed orders from international hygienic-dental material companies including prosthetic-dental material.
The scamster impersonated the doctors and ordered the products, while the companies charged the payments to their usual clients, and dispatched goods to the addresses saved in their database.
However, the man somehow managed to get the tracking numbers of the shipments from the logistics company or called them to change the delivery address to different hotels in Spain.
The Spanish National Police said the suspect would make a hotel reservation in Spain in the name of the client or the doctor to make it look legit for the duped company, but later cancelled the booking.
He then hired another courier company to pick the products up from the hotel to divert the shipments to Bahrain, Kuwait and other countries, which were the final destinations.
“In Bahrain there was another of his trusted persons who received fraudulently acquired merchandise for its subsequent distribution and/or sale,” said a statement by the Spanish National Police.
“The illegal activity generated around 2,500,000 euros and affected multiple international companies, most of them in the US operating in the dental or logistics sector.”
Furthermore, investigations led to the main mastermind of the scam based in the German city of Mannheim where he carried out his legal activity as a dentist, and held financial position in commercial companies that helped in laundering of the profits from the scheme.
Investigators conducted two searches in which cash, electronic devices and several financial documents linked to the criminal activity were seized.
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