May 18th 2024.
The Crime Investigation Department (CID) of the Odisha Police has released an important advisory to protect citizens from falling victim to the increasing number of online investment fraud cases in the state. According to the CID-CB, there has been a noticeable rise in fraudulent activities through various online platforms such as investment apps, WhatsApp and Telegram group links, and others. These scams have resulted in many people losing their money after investing in fake schemes.
The fraudsters entice people with the promise of high returns in a short period of time by investing in stock markets, shares, mutual funds, and IPO allotments. However, these investments have proven to be detrimental to the investors' finances, with most of them losing their hard-earned savings. The advisory stated that these online investment fraudsters take advantage of people's trust and greed, causing them significant financial losses.
In 2023, the CID-CB Cyber Crime PS registered 22 cases of investment fraud, involving approximately Rs. 8.5 crores in fraudulent amounts. Shockingly, within just four months of 2024, 25 more cases have been reported, with the total amount of fraud reaching Rs. 17 crores. While the Cyber Crime Wing of CID-CB has managed to arrest many of the criminals involved in these cases, the recovered amount is negligible compared to the losses suffered by the victims. This is because the fraudsters have either already used the money or transferred it outside the country.
The Crime Branch of Odisha Police revealed that the fraudsters operate by enticing individuals to join WhatsApp and Telegram groups, promising high returns on their investments. These groups are filled with members of their gang, who try to convince innocent people that they have made a profit from the suggested investments. To gain the victim's trust, the fraudsters use genuine photographs of industrialists or bankers and claim that the investments are made into registered and verified companies by SEBI. However, the recommended investment platforms turn out to be fraudulent, displaying fake returns and wallet money.
When the victims try to withdraw their funds, they are asked to deposit more money for the withdrawal, trapping them in a cycle of fraud and financial losses. The CID-CB stated that the fraudsters often use mule or hired accounts, and the funds received from victims are converted into USD, then into bitcoin, and ultimately withdrawn in different locations outside the country, including Dubai, China, and Hong Kong. The WhatsApp and Telegram channels used in these fraudulent activities are often operated from locations like Cambodia and Hong Kong.
The CID-CB urged the public to be extremely cautious when engaging in online investment activities and to thoroughly verify the authenticity of entities offering financial services. It has been observed that in recent years, there has been a significant increase in investment fraud cases, with the perpetrators using WhatsApp and Telegram groups to carry out their scams. These groups lure individuals with unrealistic promises and encourage them to deposit money into suggested accounts.
In light of this, the CID-CB has appealed to citizens to spread awareness among their family and friends, particularly older individuals who may be more vulnerable to falling for these scams. The advisory also advised the public to report any suspicious online activities or incidents of cyber-related crimes to the toll-free call centre at 1930. By working together, we can prevent and combat online investment fraud and protect our hard-earned money and savings.
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