National Threat Assessment 2008. Organised Crime - Politie

The structure of a boiler room is described as hierarchical. The staff on the
telephones usually know little about the structure of the rest of the organisation.
There are examples of staff being recruited from temporary employment
agencies. One case description states that staff themselves were defrauded by
the owner. Their salaries and bonuses were to be paid in the form of ‘high
returns’, which turned out not to have been achieved. Meanwhile, the owner
had left without a trace. In hierarchical criminal organisations, the lower tiers are
not always aware of the ‘bigger picture’. This applies especially to loose contacts
that are used for particular jobs.
3.3.5 Consequences for Dutch society
The direct consequences for victims consist of considerable financial loss and
emotional harm. The figures from Project Apollo show that more than 11 million
euros was transferred by victims in the project’s research period. This amount
includes only the losses of the victims that were identified in this project, which
means that the actual total amount is greater. For 2006, the Ultrascan research
bureau estimates the amount involved in fraud concerning Dutch organisations
at 386 million dollars. Dutch victims apparently lost an estimated 79 million
dollars in that year.
Based on identified violations of supervisory legislation, the total loss suffered
as a result of illicit financial activities in the field of securities is estimated at
between 400 and 500 million euros for 2006. For consumers the loss probably
amounted to at least 90 million euros in that year.
Fata Morgana frauds involving Dutch victims are usually investment frauds.
The emotional harm is difficult to express in amounts of money. In some cases
financial problems may ultimately lead to suicide. The victims feel ashamed of
how stupid they have been and wonder how it could ever have come to this.
Not only their self-confidence, but also their trust in other people has been
severely dented. These feelings affect how the victims go about their daily lives.
One particular indirect consequence is damage to the reputation of the
financial sector as a result of loss of trust. Furthermore, various other types of
organised crime are funded by the criminal proceeds of Fata Morgana fraud.
The reputation of the Netherlands is also damaged if swindlers operating from
bases in the Netherlands are not tackled adequately.
Financial constructions are cleverly set up. Laws and regulations prove to be
inadequate as regards preventing the use of misleading wording that is used
to sell fraudulent products.
110 National Threat Assessment 2008 – Organised crime