Delhi cyber cell arrested eleven persons for cheating over 5 lakh Indians of over Rs 150 crores via fake investment apps. The group of Chinese nationalists was operating the apps from China. According to reports, the names of various Chinese nationalists have been revealed.
The Chinese nationalist used to randomly contact people over social media platforms such as telegram and whats app. They also hired interested Indians as partners for procuring fake bank accounts, creating shell companies, circulating and promoting the Apps, and transferring money.
According to police reports, the Chinese nationalist circulated links of the online app to people and induced them to invest and, in return, promised them high returns based on a multi-level marketing model.
These apps require high permissions from users to operate, such as access to camera, ‘read contact details’, and ‘read and write to external storage. In addition, if one person invests a high amount in apps, their account number was blocked by the apps.
The Delhi police, in their investigation, found that most of the bank accounts linked with banks and involved in the conspiracy were seen running in China.
Aneesh Roy, Deputy Commissioner of police of Cyber Crime Cell, said, “Over 5,00,000 confirmed victims have been cheated of more than Rs 150 crores. Over Rs, 11 crores have been frozen in banks by swift police action, and Rs 97 Lakh cash has been recovered.”
The Delhi cyber cell started operation after noticing various posts of people regarding two apps Power Bank and explain. After further investigation, police found the power bank commonly projected itself as Bengaluru based company, but the host was established in China.
Many such apps have been circulated by fraudsters, including Power Bank, EZCoin, Sun Factory, Lightning Power Bank, etc. Some of these fraudulent, malicious Apps were also listed on Google Play Store,” said a senior officer
The group was operating in some of the major cities of India, including West Bengal, NCR Region, Bengaluru, Odisha, Assam, and Surat.
The Delhi Cyber Cell cracked their huge network after the arrest of Shaikh Robin. Police recovered around 30 mobiles from him. Robin was the first member contacted by the Chinese through telegram. Initially, he provided bank accounts to fraudsters and later took the work of managing funds.
At the time of Robins’s arrest, he had the custody of 29 bank accounts and 30 active mobile phones. Police also arrested co-accused Umakant Akash Joys, Ved Chandra, Hari Om, and Abhishek Mansaramani.
One accused Arvind, who had induced three of these persons to become Directors for a one-time payment, was also arrested. These accused further revealed the involvement of two Chartered Accountants, Avik Kedia and Ronak, behind the creation of these shell companies in connivance with Chinese nationals, and both of them were arrested the same day,” the police said.
“Investigation in respect of their whereabouts, specific roles, and their large fraud network is underway. According to the current estimates, the total cheated amount is around Rs 150 Crores, and the total recovery so far in cash, bank accounts, and payment gateways is around Rs 12 Crores. More than 5 lakh people invested their hard-earned money in such apps,” stated Roy.