Investment scam: Chinese masterminds swindle Rs. 700cr from 15,000 Indians
What's the story
The Hyderabad police have nabbed members of an investment fraud ring that seemed to have duped people across the country.
The group defrauded at least 15,000 people for over Rs. 700 core in less than a year. The fraud has links to China and the Lebanon-based terror group Hezbollah.
Let's see what the fraudsters did to swindle that much money in a short time.
Context
Why does this story matter?
Cybercrimes have been on the rise across the globe, including in India. The digitization drive has further increased the incidence of cybercrime in India.
Cyber frauds have become more and more sophisticated over time. The fact that even highly-paid software professionals fell for the investment scam is a testament to the sophistication involved in these scams.
Fraud
Victims were lured by easy part-time job offers
The cybercrime wing of the Hyderabad police started investigating the case in April after a person (Shiva) approached saying he was conned of Rs. 28 lakh.
The police found that people were being lured by investment-cum-part-time jobs. The scammers started by asking unsuspecting victims to do simple tasks, including liking YouTube videos or writing Google reviews.
They were paid for completing them.
How
Investors were tricked into putting in more money
Victims were usually approached through messaging apps like Telegram and WhatsApp. They were given high returns for small investments.
Higher returns made them believe in the operation. The investors were then tricked into investing even more.
In further stages, the amount invested reached lakhs. They were not allowed to withdraw the money until they completed all the tasks.
Transferred
The accounts were operated from Dubai and China
The victims did not get their money even after completing the tasks. The money invested by people went through multiple accounts.
The accounts were opened using Indian SIM cards but were operated from Dubai. According to the Hyderabad police, the masterminds of the scam are Chinese.
The accounts were being operated through remote access apps like 'Cooltech' and 'Airdroid.'
Crypto
The money was converted into cryptocurrency
The money was converted into crypto and transferred into crypto wallets. It was found that a portion of the money was deposited in a crypto wallet operated by Hezbollah.
The police have arrested nine people—four from Hydebarad, three from Mumbai, and two from Ahmedabad. They are on the lookout for six more.
Chinese handlers controlled the fraudsters in India.