Europe dismantles network involving one million used phones
European prosecutors say used devices were refurbished and sold as new through online platforms.
European law enforcement agencies have dismantled an alleged network that is said to have sold more than one million used mobile phones as new devices. Authorities from nineteen countries, including the Netherlands, were involved in the operation.
The European Public Prosecutor's Office (EPPO) refers to an investigation called Troja. Since the weekend, the organisation says, more than 160 searches and seizures have been carried out. Around 1,770 police, tax and customs officers were involved.
Seven suspects have been arrested in Austria, Germany and Spain. The organisation's two leaders are reportedly among them. These are allegations; all those involved are legally presumed innocent until a court decides otherwise.
According to the investigation, phones were assembled from used components from Hong Kong and the United Arab Emirates. They were then allegedly cleaned and packaged as new devices. According to EPPO, the phones first arrived in the Netherlands and were subsequently taken to warehouses in Germany.
The phones were allegedly sold to consumers in the European Union through online marketplaces. EPPO estimates the damage to consumers at at least €300 million. In addition, more than €30 million in VAT may have been lost through the use of a scheme intended for the resale of used goods.
Under the scheme, VAT is calculated on the reseller's profit margin rather than on the full sale price. According to prosecutors, the network wrongly applied the scheme by offering used phones as new products.
The Dutch Fiscal Intelligence and Investigation Service, the FIOD, took part in the operation. It is not yet known how many devices were transported through Dutch companies or addresses, or whether Dutch consumers were specifically disadvantaged.
The case shows that the boundary between counterfeit, refurbished and second-hand goods is not merely a consumer issue. For online platforms, importers and sellers, origin records, accurate product information and VAT documentation are also part of the legal risk. The full extent of the fraud will have to emerge from the continuing investigation.
One story, several perspectives
What is established
- European law enforcement agencies investigated an alleged network involving used phones.
- Dutch law enforcement agencies took part in the operation.
- The suspects have not yet been convicted.
Left
Arguments Consumer protection and enforcement should carry more weight than maximum choice and low prices on online platforms. Platforms should bear more responsibility for sellers and product origins.
Values Fair trade, consumer protection and public oversight of digital markets.
Consequences Stricter checks could limit fraud, but could also increase costs for small sellers and second-hand markets.
Centre
Arguments The rules mainly need to be enforced better, and cross-border data sharing needs to be put in order. New obligations are only worthwhile if it is clear where existing controls are failing.
Values Proportionality, practicality and legal certainty.
Consequences Targeted enforcement can protect consumers without placing an unnecessary burden on legitimate refurbishment companies.
Right
Arguments The focus should be on fraudsters rather than a general expansion of government rules for all online commerce. Swift prosecution and tough penalties should make the business model unattractive.
Values Protection of property, business responsibility and effective criminal enforcement.
Consequences A criminal-law approach can act as a deterrent, but may leave structural weaknesses in platform oversight and product information intact.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts are taken directly from EPPO and are broadly confirmed by an independent Dutch news source. Allegations are consistently presented as allegations.
- confirmed More than 160 searches were carried out in nineteen countries. — EPPO gives both figures. source
- confirmed Seven suspects were arrested in Austria, Germany and Spain. — EPPO describes the arrests and locations. source
- confirmed The alleged damage amounts to at least €300 million for consumers and more than €30 million in VAT. — This estimate appears in the EPPO statement. source
- confirmed According to the investigation, the Netherlands served as a logistical link. — EPPO describes shipments to the Netherlands and the FIOD's participation. source
Editor's note
The operation, the numbers and the role of the Netherlands are based on EPPO. The precise identities of the sellers, platforms and affected consumers have not yet been established.Sources
- Investigation Troja: criminal organisation suspected of selling used mobile phones as new — European Public Prosecutor's Office
- Netherlands used as transit hub in €300 million EU scam selling used phones as new — NL Times
More on this in Dutch media
- NOS — „smartphones fraude”
- Het Parool — „smartphones fraude”
- NRC — „smartphones fraude”