Germany Uncovers $350 Million Fraud Tied to Payment Firms (3)

German police said they made multiple arrests to break up alleged fraud and money laundering networks operating through payment firms, intensifying scrutiny of the industry’s alleged links with criminals.

Law enforcement officials said at a press conference on Wednesday that they suspect former employees of “four big German payments providers” had knowledge of the fraudulent activities, but allowed them to happen anyway. There’s suspicion some of the staff including executives even “cooperated” with the fraudsters, Harald Kruse, chief public prosecutor for the German city of Koblenz, told reporters.

The outcome of the sprawling investigation comes a few months after the ...