ED Attaches Rs.8.4 Crore Money in Fraudsters’ Bank Accounts
Before participating in any activity, victims were required to deposit money into their app wallets, typically through UPI payments made to bank accounts or VPA IDs linked to shell entities and shared by the WhatsApp agents.
Hyderabad: The Enforcement Directorate (ED) attached bank balances amounting to Rs.8.46 crore, spread across 92 bank accounts, including those of CoinDCX and crypto wallets, under the Prevention of Money Laundering Act (PMLA), in connection with an ongoing investigation into a large-scale cyber fraud carried out through fake e-commerce platforms and fraudulent money-making mobile applications and websites.
According to officials, the agency initiated the investigation based on multiple FIRs registered by the Kadapa police against unidentified cyber fraudsters. The investigation revealed several other FIRs across the country, indicating a broader web of scams orchestrated through deceptive part-time job schemes and fraudulent investment applications, including the NBC App, Power Bank App, HPZ Token, RCC App, Making App, and several other online platforms.
During the ED’s investigation, it was found that the fraudsters targeted gullible individuals through WhatsApp and Telegram groups and bulk SMS campaigns, luring them with promises of high commissions and quick profits. Victims were persuaded to register on fake apps or links purporting to offer investment or e-commerce-based earnings. They were instructed to perform simple tasks, such as buying or selling items on fictitious e-commerce websites, after which reward points or earnings would appear in their online wallets.
Before participating in any activity, victims were required to deposit money into their app wallets, typically through UPI payments made to bank accounts or VPA IDs linked to shell entities and shared by the WhatsApp agents. To gain the trust of investors, the fraudsters initially credited small profits or commissions into their bank accounts, encouraging them to deposit higher amounts for greater returns. Once substantial sums had been deposited, victims’ withdrawal attempts consistently failed.
Proceeds of crime amounting to Rs.285 crore, generated through this scheme, were collected in more than 30 primary-layer bank accounts that were used only for short periods ranging from one to fifteen days, followed by swift transfers to over 80 other bank accounts to minimize the risk of detection or account freezing by banks and law enforcement agencies. A significant portion of the crime proceeds was found to have been converted into cryptocurrency or moved through hawala channels within India.