European authorities dismantle criminal network selling used phones as new

The European Public Prosecutor's Office (EPPO) in Cologne has dismantled a major criminal organization responsible for a large-scale fraud involving the sale of used mobile phones as new. The operation, codenamed "Troja," was launched following a report from the European Anti-Fraud Office. Authorities estimate the fraud caused at least 300 million euros in damages to consumers and resulted in over 30 million euros in lost Value Added Tax (VAT) revenue across various European Union member states.

The operation involved 1,770 law enforcement officers, tax officials, and customs agents conducting over 160 searches across 19 countries, including Austria, Belgium, Bulgaria, Croatia, Cyprus, Estonia, Finland, Germany, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Spain, Switzerland, and the Netherlands. Seven suspects were arrested in Austria, Germany, and Spain, including the two alleged ringleaders of the organization.

Investigations revealed that the criminal network allegedly assembled mobile phones using used components imported from Hong Kong and the United Arab Emirates. The fraud was facilitated by misrepresenting these refurbished devices as brand-new products to unsuspecting consumers throughout the European market. The investigation into the network's operations remains ongoing as officials continue to process evidence collected during the widespread raids.