Nine Israelis Arrested in Turkey in $266 Million Fraud Ring Bust

Nine Israeli citizens have been arrested in Turkey as part of a large-scale operation targeting a $266 million international phone scam network. The arrests occurred during a broad raid yesterday, which also apprehended numerous other suspects, according to Middle East Eye. All detainees reportedly worked in customer service call centers.

The Israeli Ministry of Foreign Affairs confirmed receiving reports of the arrests, stating they are actively handling the situation and ensuring the rights of the detained Israelis are upheld. The operation, a joint effort by Turkish police, the National Intelligence Organization (MIT), and Interpol, targeted hundreds of locations in Istanbul and the southwestern Muğla province.

Investigators suspect the network, dubbed the "Fraud Empire," operated for about a decade across multiple countries. It allegedly defrauded victims through investment scams, convincing them to invest via controlled platforms and then showing fabricated profits to elicit further funds. These funds were reportedly transferred to offshore bank accounts and cryptocurrency wallets, with some victims losing hundreds of thousands of dollars.

According to the Istanbul Chief Public Prosecutor's Office, Israeli nationals managed the organization, appointing "Israeli fraud barons" as activity managers in various countries. These individuals allegedly created shell companies to defraud investors. Notably, the network deliberately avoided targeting Israelis or Americans, focusing instead on victims in Malaysia, the UAE, Russia, Singapore, the UK, Canada, Australia, Ireland, China, Switzerland, Belgium, Sweden, and South Korea, among others.

Turkish authorities identified one key suspect as an Israeli citizen also holding a Portuguese passport. The investigation suggests some scam operations previously based in Israel relocated to Turkey due to bilateral tensions. The perpetrators reportedly established front companies posing as customer service centers, hiring multilingual staff for roles like "conversion agents" and "retention agents." These employees underwent training on creating false identities and building victim trust, often using fake names and fabricated backgrounds, including claims of attending prestigious universities. They were also reportedly subjected to polygraph tests to screen for security or law enforcement ties, and were strictly forbidden from speaking Hebrew within the offices. The investigation is ongoing, with authorities examining the full scope of the operation and financial flows. Over 200 individuals have been arrested and questioned in connection with the case.