Dismantling of an International Fraud Ring Posing as Gold and Silver Investment

As part of the Ministry of Interior’s efforts to combat fraud and protect citizens from fraudulent entities, investigations by the Public Security Sector have uncovered the organized criminal activity of an international gang specializing in defrauding citizens under the pretext of investing in gold, silver, and gemstones.

Investigations revealed that the criminal network consists of 15 suspects, including 13 foreign nationals, who relied on deceiving victims with promises of fast and high returns as their primary method of attraction. The group offered alleged investment opportunities in gold and silver jewelry and gemstones at prices exceeding their real value, in exchange for weekly, escalating profits tied to the victim’s ability to recruit new participants—using a scheme closely resembling fraudulent pyramid marketing practices.

To lend a veneer of legitimacy to their illegal activities, the suspects established a shell company and used a premises located within the jurisdiction of Dokki Police Station in Giza Governorate to hold meetings with clients, while actively promoting their scheme through social media platforms, exploiting the high level of public trust in investments linked to precious metals.

Following the completion of legal procedures and in coordination with the relevant sectors of the Ministry of Interior, security forces succeeded in arresting the members of the gang. Authorities seized quantities of counterfeit gold and silver jewelry that did not meet the declared purity standards, along with forged hallmark stamps, counterfeit weighing scales, and fake wax molds used to stamp and indicate gold purity.

All seized items were handed over to the competent authorities for technical examination, with the total estimated value of the confiscated items amounting to approximately EGP 30 million.

Legal measures were taken against the suspects, and the case was referred to the Public Prosecution, which has commenced investigations, as part of the state’s continued efforts to combat financial fraud and safeguard citizens’ savings, particularly in sectors related to gold and precious metals.