Online share trading scam: Chennai woman duped of ₹10.27 crore; two arrested

The police said that the 45-year-old complainant, the wife of a Kotturpuram-based businessman, was scammed after she came across an ad for investment trading tips on social media a couple of months ago 

The Cyber Crime Wing of the Central Crime Branch (CCB), Chennai, has arrested two persons for their alleged involvement in an online share trading fraud, in which a woman from the city was allegedly duped to the tune of ₹10.27 crore.

The police said that the 45-year-old complainant, the wife of a Kotturpuram-based businessman, came across an advertisement for investment trading tips on social media a couple of months ago and subsequently joined a WhatsApp group.

She then downloaded an online share trading app via a link sent by unknown persons on the group, enticing her to invest in share trading through this app “for huge profits.”

Convinced by their pitch, she deposited a total amount of ₹10,27,06,364 through online transfers between April and July in various bank accounts mentioned by the fraudsters. The fraudsters displayed exaggerated profits on her virtual account on the app, but the profit amount did not reflect in her actual bank account.

When the complainant attempted to withdraw the amount, the fraudsters demanded more money from her. Only then did she realise that she was being cheated and that the whole venture was a scam.

In August, she lodged a complaint with the Office of the Commissioner of Police, Greater Chennai Police, based on which a case was registered by the Cyber Crime Wing.

On the instructions of Commissioner of Police A. Arun, a special team headed by Cyber Crime Team Inspector Hema was formed to trace the culprits.

A senior officer said, “We were immediately able to freeze ₹46 lakh but the remaining amount was quickly transferred to Malaysian agents who may be the main suspects. After scrutiny of social media posts, WhatsApp messages, phone numbers, and bank account details, we were able to trace the account holders who were the recipients of the money, and they were arrested.”

The police team arrested Rajesh Ram, 36, of Pozhichalur, and Srinivasan, 42, of K.K. Nagar, Chennai. Three mobile phones, two Aadhaar cards, and one PAN card used for committing the crimes were recovered from the accused.

The accused opened various bank accounts for the purpose of coaxing people into transferring money, which in turn was transferred to the Malaysian agents, the police said.

Commissioner cautions public

The police said in online investment and part-time job scams, the victims are targeted through fake advertisements on social media platforms like Facebook, Instagram, and YouTube. The fraudsters provide links to fake stock trading apps and websites, luring people to invest and open fake demat accounts on the false promise of exceptional profits.

The Commissioner cautioned the public to be careful about such high-profit investment advertisements and fake investment apps and websites, and advised them not to transfer money to unknown bank accounts.

The public are requested to contact the cybercrime helpline number 1930 or register a complaint when such offences occur, the police said.

Published - November 06, 2024 05:40 pm IST