‘Deep Fake Web’ Of Investment Schemes & Cyber Arrests: Exclusive On How Fraudsters Trap Victims After ED’s Recent Bust
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From false promises on social media platforms to fake schemes, investments, returns and even cyber arrests, don’t fall into the trap of fraudsters
The proceeds of crime to the tune of Rs 2.81 crore have been frozen in the bank accounts used in the cyber scam. (Shutterstock file for representation)
The Enforcement Directorate (ED) recently busted a cyber investment racket or a pig butchering scam, with the arrest of eight persons in Karnataka and Tamil Nadu.
The multiple first information reports (FIR), based on which the ED initiated action, claimed the fraudsters lured people with schemes involving fake IPO allotments and stock market investments through fraudulent apps, or even manipulated people under the guise of a fake arrest by Customs and the Central Bureau of Investigation (CBI), ultimately making them transfer huge funds to various shell companies under fake “fund regularisation process”.
The proceeds of crime to the tune of Rs 2.81 crore have been frozen in the bank accounts used in the cyber scam.
DON’T FALL FOR THIS TRAP
A look at how the fraudsters dupe innocent people:
- Luring Victims: The first step of the scam involves luring the victims via various social media platforms including Facebook, Instagram, WhatsApp, and Telegram by giving false promises of high returns on their investment, allotment of IPOs through a special quota, etc.
- Fake Groups: Once the victims seem interested, these scamsters then add these victims to WhatsApp/Telegram groups, which also have fake members planted by these scamsters in these groups for sharing fake and fabricated success stories. These WhatsApp groups have names similar to well-known apps/financial institutions. E.g. ICICI Securities, GFSL Securities, SMG Global Securities, Blackrock Capital, JP Morgan, to create an impression that these groups are genuine.
- Fake Apps: Once the victims are convinced about the genuineness of the WhatsApp/Telegram groups and the fake success stories planted by members, scamsters then ask these victims to install fraudulent apps for the purpose of investments. For the purpose of installing the apps, scamsters share the links or apk files over WhatsApp with the victims. The names of various stocks, futures, options, forex etc. shown in these apps are the same as that of well-known companies (e.g. Reliance, Tata Power) to create an impression that the apps are genuine.
- Fake Investments: Thereafter these scamsters induce the victims to invest in various fake IPO stocks, fake stocks, etc. and make them transfer their hard-earned money to the bank accounts of shell companies created for the specific purpose of collection of cybercrime proceeds. Thus, these victims are duped of their hard-earned money.
SIPHONING THE FUNDS
To build further trust, the victim might initially get good returns on their investment, which gives them confidence and encourages them to invest more amounts. These returns are entirely fictitious and do not exist in reality. They are just numbers shown on these fake apps.
As the victim invests more funds, they eventually realise that they are unable to withdraw their funds. When the victims try to withdraw their money from these apps, the scammer asks the victims to pay statutory taxes, brokerage fees, etc. which are nothing but ways to extract even more money from the victims. Once the scammer believes that they have extracted as much money as possible, they cut off all communication and disappear, leaving the victim helpless and with no recourse.