Another Payments Scandal Strikes Germany
Hey FinTech Fanatic!
German authorities have uncovered a large-scale fraud and money laundering scheme under "Operation Chargeback," leading to multiple arrests.
The operation involved more than 60 house searches and the execution of 18 arrest warrants.
The criminal network is suspected of misusing credit card data from over 4.3 million cardholders across 193 countries, operating through payment firms, racking up more than 300 million euros in damages.
In a news conference, investigators said they believe former employees of four major German providers may have known about, or even participated in, the scheme.
Here are some numbers:
- Over 300 million euros in total damage (actual charge to credit cards);
- Around 2,000 fake websites (especially streaming, dating, and entertainment services);
- More than 19 million fake subscriptions.
- Over 4 million cardholders affected.
- Over 500 front companies.
No names were released, but the case reignites scrutiny on Germany's FinTech sector, still rebuilding its reputation years after the Wirecard collapse.
BaFin, the Federal Financial Supervisory Authority in the country, has already been tightening oversight, and even industry giants like Worldline have recently faced allegations of ignoring risk warnings.
Germany's payments sector struggles to move beyond its troubled reputation.
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