Intensifying the Battle Against Cybercrime
The summer has not only brought record-breaking temperatures but also a surge in efforts to combat cyber scams and cybercrime. In recent years, cybercriminals have operated with relative impunity, undermining trust in digital financial markets. This trend must be reversed.
In the United States, a significant precedent was established in the fight against cyber scams with the conviction of former Yukom CEO Lee Elbaz. Elbaz was held accountable for managing boiler rooms behind various broker scams. U.S. prosecutors detailed the mechanics of investment fraud via broker scams and boiler rooms during the trial. Prior to this, five former employees had already pleaded guilty in the Yukom investment scam, and further indictments are anticipated. These actions send a clear message to scammers and fraudsters.
In Europe, the case involving E&G Bulgaria, led by Israeli national Gal Barak and his network, holds similar significance in the fight against cybercrime and online investment fraud.
European Precedent: E&G Bulgaria and Gal Barak
European authorities recognize the urgent need to tackle cybercrime. Cyber scams result in tens of thousands of victims annually and cause substantial financial damage to individuals, organizations, and states. The revenues of cyber scam organizations continue to rise sharply, posing a direct threat to our digital financial systems and civil society.
The case of Gal Barak and his partner, German national Uwe Lenhoff, marks the first coordinated action by European authorities against large-scale cyber scam organizations. EU arrest warrants were issued for both individuals based on compelling evidence gathered over more than a year of investigations by various EU authorities.
While Lenhoff remains in custody in Germany, Gal Barak was released into house arrest in Sofia after his initial detainment and continues to operate his scams and boiler rooms with his accomplices. Evidence suggests that his boiler room operations persist and are expanding into new areas. Austrian authorities have been striving to secure Barak’s extradition from Bulgaria.
EFRI and the Victims’ Petition for European Cybercrime Justice
Although Gal Barak is legally presumed innocent, authorities in several EU countries suspect him of masterminding broker scams such as XTraderFX, SafeMarkets, OptionStarsGlobal, Golden Markets, and CryptoMarkets. Furthermore, Barak and his company, E&G Bulgaria, are believed to operate boiler rooms in Bulgaria, Serbia, and Bosnia-Herzegovina.
Thousands of victims accuse Barak and his organization of financial theft. Consequently, he must be held accountable by authorities, courts, and victims alike. In constitutional states, including those in the West and Israel, individuals cannot evade responsibility by avoiding legal proceedings.
These illegal boiler rooms must be shut down immediately to prevent further deception of investors across Europe and to restore confidence in the financial system. This responsibility lies with the competent authorities.
The EFRI Victims’ Petition for European Cybercrime Justice aims to alert the Bulgarian public prosecutor’s office to their role in addressing this issue. Decisive measures are necessary to uncover the extensive fraud associated with broker scams and boiler rooms and to terminate these illegal activities.
Bulgarian Public Prosecutor’s Office and Embassies
Extraditing Gal Barak to Austria for questioning is essential—not only for the E&G Bulgaria case but also for the broader fight against cybercrime in Europe. Now is the time to take action.
A court hearing in Sofia is scheduled for 16 August 2019 to decide on Barak’s extradition. Every EU citizen and resident has a constitutional obligation to respond to official accusations, and Barak is no exception. This is the objective of the Petition.
Through the EFRI Victims’ Petition for European Cybercrime Justice, victims and supporters are encouraged to send letters to Bulgarian Prosecutor General Sotir Tsatsarov and their respective diplomatic representatives in Bulgaria. This initiative serves as a signal that cybercrime has no place in Europe, and Bulgaria, as an EU member, must uphold this standard.
We urge you to support the EFRI petition and promote it through social media. This issue affects us all, not just the victims. Together, we can make a difference.