New Delhi, November 4
Following the recent menace of ‘digital’ arrest scams popping up across the country, the probe agencies have geared up against this crime and the I4C working under Ministry of Home Affairs (MHA) has issued a fresh advisory.
The Enforcement Directorate (ED) issued a statement that it filed a prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru last month against eight accused who allegedly “lured” common people through “fake” IPO allotments and stock market investments through fraudulent apps.
“Probe found that a huge network of cyber scams in India, involving fake stock market investments and digital arrest schemes executed primarily through social media platforms like Facebook, Instagram, WhatsApp, and Telegram. Known as ‘pig-butchering’ scams, stock market investment scams entice victims with promises of high returns, using fake websites and misleading WhatsApp groups that appear connected to reputable financial firms", the statement further noted.
Scammers establish credibility through fake ads and fabricated success stories, ultimately leading victims to invest significant amounts, ED further added.
The ED said some victims of this scam were “manipulated” under the guise of a fake arrest by the Customs and the CBI, ultimately making them transfer huge funds to various shell or dummy companies under fake “fund regularisation process.”
The digital arrest scams involve fraudsters posing as law enforcement officials, intimidating victims into transferring their savings by fabricating scenarios that suggest illegal involvement of the victim, the federal agency said.
Meanwhile, the Indian Cyber Crime Coordination Centre (I4C) issued a public advisory asking people to “Beware of Digital Arrests” reminding that “those making video calls are not police, CBI, Customs officials or judges”.
The advisory asked people to not fall for these ” tricks” and report such crimes “immediately” by calling the national cybercrime helpline 1930 or logging at the portal http://www.cybercrime.gov.in.
The ED said it booked a money laundering case into this crime after studying multiple police FIRs and it arrested eight persons, also named as accused in its charge sheet filed on October 10, named Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R and Aravindan and 24 related companies.
All the arrested persons are currently lodged in jail under judicial custody. This cyber crime case involves proceeds of crimes to the tune of Rs 159 crore and the court has taken cognisance of the ED charge sheet on October 29. The fraudsters, in order to perpetrate this fraud, obtained hundreds of SIM cards which were either linked to the bank accounts of shell companies or were utilised to create WhatsApp accounts.
The scammers created 24 shell companies in Tamil Nadu, Karnataka and some other states to facilitate the acquisition and laundering of proceeds from cybercrimes. These shell companies, registered mainly at the addresses of coworking spaces (where no actual business presence exists), have used fake bank statements in filings before Registrar of Companies as proof of commencement of business of these companies, the advisory further said.
The ED said it has “incriminating” evidence like chequebooks and communication records to say that these individuals participated in a syndicate that laundered proceeds from cyber frauds across India.
