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U.S. Arrests 5 in German-Led €300 Million Card Fraud Probe

Prosecutors say the network masked low recurring charges via compromised payment processors, using shell companies to launder proceeds.

Overview

  • Operation Chargeback resulted in 18 arrests after coordinated raids on November 4 across Europe, North America and Asia, targeting three networks tied to at least €300 million in losses and 4.3 million cardholders in 193 countries.
  • German investigators say the fraud used about 19 million fake subscription payments kept below €50 per month and routed through four German payment service providers with alleged insider collusion by executives and compliance staff.
  • Five suspects were arrested in Southern California at Germany’s request for extradition, identified by the DOJ as Medhat Mourid, Andrew Garroni, Guy Mizrachi, Ardeshir Akhavan and Tunde Benak.
  • Authorities conducted more than 60 searches, secured assets worth over €35 million in Germany and Luxembourg, and are reviewing seized digital evidence as international legal assistance requests proceed.
  • In a separate Eurojust action days earlier, nine suspects were arrested in Cyprus, Spain and Germany over a fake crypto investment network that laundered about €600 million, with seizures including €800,000 in bank funds, €415,000 in crypto and €300,000 in cash.