THE ROLE OF LEGAL AND REGULATORY FRAMEWORKS IN COMBATING ECONOMIC AND DIGITAL CRIMES: IMPLICATIONS FOR POLICE PRACTICES – A COMPARATIVE STUDY OF NORTH MACEDONIA AND GERMANY

Online financial fraud represents a growing threat to individuals and financial systems, exploiting weaknesses in legal frameworks and investigative capacities. This study examines a 2024 SMS phishing scam in North Macedonia, where perpetrators impersonated the customs authority to extract financial information, and compares it with the 2025 German “Operation Heracles,” which dismantled over 1,400 cybertrading fraud platforms. Using a comparative legal and forensic approach, the paper analyzes the application of relevant laws, including North Macedonia’s Criminal Code (Articles 251-b and 251-v), the Law on Electronic Communications, and the Law on Personal Data Protection, alongside Germany’s Penal Code (Sections 263 and 263a), the Securities Trading Act, and relevant EU directives. Investigative tools, such as digital forensics in North Macedonia and AI-assisted analytics with cross-border coordination in Germany, are assessed, together with operational limitations, including jurisdictional challenges, technical expertise gaps, and resource constraints. Findings reveal that comprehensive legal frameworks, technological capabilities, and international cooperation are critical for effective policing of online financial crimes. The study offers recommendations to strengthen law enforcement strategies, legal provisions, and forensic practices in North Macedonia and similar jurisdictions. Keywords:online financial fraud, digital forensics, legal frameworks, policing, comparative study