EU law officers halt major online investment racket

German police and prosecutors conducted a four-year probe into the racket after complaints by online investors who had been tricked by professionally designed websites "promising high returns on low investments", Eurojust said.

"To date, around 120 German victims are known, who have lost approximately 12 million euros (US$13 million)," the Hague-based agency said.

"However, further assessments by German investigators indicate that there are many more victims worldwide, with the fraud totaling at least 300 million euros," Eurojust said.

"It could even be as high as 500 million euros," it added.

Victims received a maximum of only three percent of their initial investment "if any money was returned at all".

"Through the websites, the perpetrators managed to gain access to personal data and bank account details, creating fake customer accounts to lend credibility to the scheme," Eurojust said.

The agency help set up a joint task force with Cypriot and Serbian police culminating in a day in which 22 premises were searched in Cyprus and Serbia.

One suspect -- believed to be the lynchpin of the operation -- was arrested in Cyprus on Wednesday and a number of other suspects have also been identified.

"Germany will ask Cyprus to surrender the suspect," Eurojust said, adding: "Investigations into the fraud are ongoing."