An ABC investigation has exposed an Israel-based fraud network that allegedly defrauded over 4,000 Australian victims through fake news articles promoting AI-powered trading platforms. Operating from central Tel Aviv with call centres across Bulgaria, Ukraine, Cyprus, Macedonia and Israel, the scheme has been active since at least 2021 and likely caused hundreds of millions of dollars in losses according to the Organised Crime and Corruption Reporting Project.
The network’s complexity became apparent when ABC traced proceeds to an Australian company whose director, accountant and shareholder all severed connections during questioning. The identified Israeli beneficial owner denied wrongdoing despite his name appearing nowhere in Australian corporate filings. His marketing company, ostensibly selling visa services, operated call centres across Israel, Cyprus, South Africa, Spain and the Philippines, with a South African affiliate allegedly processing scam payments in 2021.
This case reflects Australia’s escalating investment fraud crisis, with losses surging from 328 million dollars in 2020 to 945 million in 2024. The pattern mirrors a separate Israel-controlled boiler room network exposed in March 2025 by OCCRP, SVT and The Guardian, which operated from Bulgaria, Ukraine, Spain and Cyprus and defrauded victims of over 247 million dollars.
For payment processors and regulated brokers, these cases highlight the reputational and compliance risks of inadequate onboarding procedures, particularly regarding beneficial ownership verification and cross-border corporate structures designed to obscure accountability.
FXnCO Insight
Opaque ownership structures and international payment routing remain red flags that demand enhanced due diligence, especially when client acquisition relies heavily on digital marketing channels and offshore call centres.
Source: Finance Magnates