The Bengaluru Police have uncovered a cyber fraud scam worth Rs 854 crore, arresting six locals—Manoj, Panindra, Chakradhar, Shrinivas, Somashekar, and Vashanth—who allegedly deceived thousands across India with a fraudulent investment scheme.
According to a PTI report, The police are still pursuing three other suspected masterminds behind the scam.
What was the scam?
According to the police, who busted this massive scam, The fraudsters attracted victims via WhatsApp and Telegram, promising high daily profits on small initial investments, leading victims to invest amounts ranging from Rs 1,000 to 10,000 on the pretext that they would earn Rs 1,000 to 5,000 per day as a profit.
Following this, Thousands of victims invested money ranging from Rs 1 lakh to 10 lakh or more. The accused failed to return the invested money or the promised interest, having transferred the collected Rs 854 crore to 84 different bank accounts, with Rs 5 crore of it now frozen by the police.
The victims, after investing, were unable to withdraw their money.
The accused allegedly laundered the consolidated funds through various mule accounts, using different online payment modes including crypto, payment gateways, and gaming apps. In Bengaluru alone, victims were defrauded of Rs 49 lakh. The Central Crime Branch (CCB) is actively investigating this significant and complex case of cybercrime fraud, the PTI report said.
The police investigation revealed similar cases of cyber investment fraud
The report further said that the investigation, led by the state police, revealed that 5,013 similar cases of cyber investment fraud have been registered across the country. Out of which, in Bangalore city alone, 17 such cases have been registered at different police stations.
The police said that the Central Crime Brand (CCB) has been working on the current case for three months, adding that through technical surveillance and other vital leads, they managed to track down the culprits.
What do rising cyber fraud cases reveal about India’s digital security?
Cyber fraud has been a major concern in India, with financial frauds accounting for over 75% of cyber crimes in the country from January 2020 to June 2023.
Nearly 50% of these cases are related to UPI and internet banking, as per a study by an IIT Kanpur-incubated startup, mentioned by the Future Crime Research Foundation (FCRF) in its whitepaper ‘A Deep Dive into Cybercrime Trends Impacting India’.
Social media-related crimes, including cheating by impersonation, cyber-bullying, sexting, and email phishing, constituted 12% of the online offences during this period.
Major tech centres in India, including Gurugram and Bangalore, have emerged as prominent hubs for cybercrime activities, with poor cybersecurity infrastructure, inadequate digital literacy, and socioeconomic challenges contributing to their vulnerability.
Gurugram, a key IT and corporate hub, accounted for a staggering 8.1% of reported cybercrimes, despite housing less than 0.2% of India’s population. Bengaluru, the ‘IT Capital’ of the country, is also grappling with a rapid upsurge in cybercrime.
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