Several messages doing the rounds on social media are promising 'guaranteed returns with minimum or zero effort' to ensnare unsuspecting victims who often have no clue about how they are being duped by organised cybercriminals. It is yet another example of how easy it is to dupe people using the twin psychological tools—fear or greed.
A recent investment scam exposed by the police shows people were contacted via social media, and almost Rs700 crore was then converted into cryptocurrency and transferred to China through Dubai. Some of this money ended up in an account operated by Hezbollah, a Lebanon-based terror group.
Another case that I will discuss later, reveals a crypto fraud racket that tricked Canadians by posing as a Canadian government official.
Investment Scam with Chinese Links
WhatsApp and Telegram users are receiving messages enticing them to invest small amounts of up to Rs 5,000 to earn quick profits. They are given simple tasks like liking YouTube videos or writing Google reviews for generous payoffs. These initial rewards are used to lure investors into investing larger sums without realising it's all part of the trap. The reward is the motivator and greed does the trick.
The Hyderabad police uncovered a major fraud operation involving Chinese handlers that duped at least 15,000 Indians of over Rs700 crore in less than one year. The money was funelled to China via Dubai with some even sent to Hezbollah-operated accounts, according to an
NDTV report citing police officials.
Hyderabad police Commissioner CV Anand told the channel that the police suspect a part of the money was converted into cryptocurrency and deposited into a wallet operated by the terrorist group, Hezbollah. Nine people have been arrested—four from Hyderabad, three from Mumbai and two from Ahmedabad; the police are looking for at least six more.
According to the report, victims who were approached through Telegram and WhatsApp groups have lost Rs5 lakh to Rs6 lakh on an average. There were shown 'huge' earnings to their name online, especially when they invested additional funds to increase their returns by completing newer tasks, but were not allowed to withdraw the money until all tasks were completed.
The Hyderabad police found 48 bank accounts set up in the name of shell companies. Further investigation revealed that the scamsters had swindled another Rs128 crore. A total of 113 Indian bank accounts were used in the scam. The money was moved through multiple accounts, converted into cryptocurrency, and then routed to China through Dubai.
"The accounts, which were opened in India using Indian SIM cards, were subsequently remotely operated in Dubai. The fraudsters were in touch with Chinese operators, who are the masterminds of the scam," a police officer told NDTV.
The police have arrested one Munawar from Hyderabad, who, they say, went to Lucknow with three aides—Arul Das, Shah Sumair and Sameer Khan—and set up 33 shell companies and opened 65 accounts. They were paid Rs2 lakh for each account opened by the gang. The 65 accounts were then used by Chinese masterminds—Kevin Jun, Lee Lou Langzhou and Shasha - to transfer over Rs128 crore, says the report.
Crypto Fraudsters Posing as Government Official
In another instance, the Central Bureau of Investigation (CBI) arrested Sahil Pal for allegedly impersonating a Canadian government official while running his crypto fraud scheme alongside his aide Ashish Bhambhani. This duo provided fake technical support consultation to foreign victims, coercing them into transferring cryptocurrency assets which ended up in their own crypto wallets after several transactions between different wallets (Bitcoins), a CBI official told the news agency IANS. "The ill-gotten cryptocurrency assets were subsequently routed through multiple crypto wallets (Bitcoins), ultimately ending up in their own crypto accounts."
During their searches at different places in Delhi, CBI recovered Rs1 crore and some incriminating digital evidence, electronic devices and other documents.
There is no such thing as a free lunch or huge returns on investments overnight. Your money will not double overnight or in a week, month or year. All schemes that promise quick and enormous returns are castles in the air. Else the Ambanis and Adanis would not have wasted time and money to build their business empires the hard way instead of 'simply completing tasks and earning huge returns'!
Remember, protecting yourself and your hard-earned money from investment scams requires vigilance, scepticism and some key strategies.
Here are a few useful tips to help you avoid becoming a victim of investment scams.
Thorough research: Before investing your money in any scheme, do extensive research. Investigate the company or the individuals involved and the investment product or service offered. Look for any red flags, negative reviews, or complaints. Follow the simple thumb rule of not investing in products that you do not understand.
Verify credentials: Check if the company or individual offering the investment is properly licensed and registered with the relevant regulatory authorities. Also understand, a certificate of registration obtained from the registrar of companies does not mean the company is allowed to offer investment schemes.
Be sceptical of guaranteed returns: Be cautious if an investment promises exceptionally high or guaranteed returns with little or no risk. All investments carry some degree of risk and no one can guarantee constant high returns. For the financial year (FY)23-24, the highest interest on a fixed-income small savings scheme is 8.20% offered under the senior citizen savings scheme (SCSS). If anyone assures you investment returns more this, then be cautious.
Don't rush: Fraudsters often use high-pressure tactics to push you into making quick decisions. They create urgency by using words like 'only for today' or 'you would not get higher returns tomorrow'. Take your time to evaluate the investment scheme thoroughly before investing.
Say no to unsolicited offers: Be extra cautious of unsolicited investment offers received through email, social media messages, or phone calls. Remember, legitimate investment schemes are rarely offered in this manner.
Beware of Ponzi or pyramid schemes: These scams promise high returns based on recruiting others into the scheme rather than generating profits from investments. All these schemes collapse under their own weight.
Trust your instincts: If something feels too good to be true or raises concerns, trust your gut and stay away from such an investment scheme.
By following these guidelines and staying informed, you can significantly reduce the risk of falling victim to investment scams and protect your hard-earned money.
How To Report Cyber Fraud?
Do report cybercrimes to the National Cyber Crime Reporting Portal
http://cybercrime.gov.in or call the toll-free National Helpline number, 1930. To follow on social media: Twitter (@Cyberdost), Facebook (CyberDostI4C), Instagram (cyberdostl4C), Telegram (cyberdosti4c).
If the fraud is related to your bank account, you need to immediately send an email to the official email ID of your branch (you can find it on the bank's website or your passbook) with a copy to the bank's customer care. Even if you have called the official number for customer care, you must still send an email describing your conversation with the bank executive, along with the time, date, and duration of the call. This will be helpful if you face a liability issue with the bank.
