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🇦🇺 Australia /Crime & Justice

Money trail from fake ABC articles leads to international fraud network

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data Context piece
  • Victims of an Israeli-based investment fraud group, dubbed the Sapphire Network, have lost hundreds of millions of dollars through fake news articles and false promises.
  • The network, operating since at least 2021, targets individuals, often Australians, using cloned websites and sophisticated manipulation tactics.
  • An investigation identified companies receiving victim payments, with call centers linked to the network operating in multiple countries.

A sophisticated investment fraud network, operating out of Israel and dubbed the Sapphire Network, has defrauded victims of hundreds of millions of dollars. The group, active since at least 2021, lures unsuspecting individuals, primarily Australians, through fake news articles and promises of AI-assisted trading. Once victims invest, recovering their money becomes nearly impossible.

One victim, identified as Rodger, lost approximately $125,000 after being instructed by a supposed financial professional in Switzerland. He faced a barrage of excuses, including account freezes and liquidity issues, when attempting to withdraw funds. Desperate, Rodger couldn't even afford Christmas presents for his family, yet his broker urged him to invest more money.

You guys have all of my money tied up. I need … to buy a wheelchair.

— RodgerRodger texted his broker, expressing desperation as he needed funds for medical expenses while his investment was inaccessible.

Another Australian man, Toby, was similarly ensnared in early 2026, losing over $500,000. He was drawn in by a fake news article mimicking the ABC website. Toby deposited funds into a platform controlled by his broker, allowing him to trade on oil and gold markets. The investigation, a collaboration involving the OCCRP and its partners, utilized leaked documents from within the Sapphire Network to trace payments to a web of companies with call centers in Bulgaria, Ukraine, Cyprus, Macedonia, and Israel.

Sorry to hear that Rodger. If you manage to come up with the 5k [more to invest] … would be perfect.

— BrokerThe broker's reply to Rodger's financial distress, urging him to invest more money despite his inability to afford basic necessities.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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