With cybercriminals on the prowl, the Criminal Investigation Department (CID) of the Odisha Police has issued an advisory to protect citizens from falling prey to online investment fraud cases.
“CID urges the public to exercise extreme caution when engaging in online investment activities and to carefully verify the authenticity of entities offering financial services. In recent years, there has been a concerning increase in cases of investment fraud, with perpetrators often utilising WhatsApp or Telegram groups to carry out their scams. These groups often promise unrealistic returns and encourage individuals to deposit money into suggested accounts,” the investigating agency said in a statement on Saturday.
The CID appeals to citizens to spread the word within their family and friends’ circles, especially among the elderly citizens who might be lured by the fraudsters into investing their hard-earned money and lifetime savings into such fake online investment groups, the agency stressed.
People knowing little about the ploy devised by fraudsters lose their precious savings by investing in such fake online schemes. Fraudsters often lure people on the pretext of high returns in a short time with investments in stock markets, shares, Mutual Funds, and IPO allotment. Most of these investors have lost their hard-earned savings. Exploiting the trust and greed of these people, online investment fraudsters have caused them devastating financial losses, it said.
In the past two years, 47 online investment fraud cases were registered by the CID with investors defrauded to the tune of Rs 25.5 crore.
Though the CID has been able to arrest many of the criminals in the registered cases, a negligible amount of money could be recovered from them as compared to the losses incurred by victims, as the money has already been used by these criminals or, in some cases, siphoned off outside the country. the CID said.
Fraudsters operate by first inducing individuals to join WhatsApp and Telegram groups promising high returns on investments in a short duration. These groups are operated by their gang members, who make innocent people believe by claiming to have profited from the suggested investments. The fraudsters claim that the investments are made into SEBI-registered and verified companies by using genuine photographs of industrialists or bankers to gain the confidence of the victim.
It’s noteworthy that the accounts utilised by the fraudsters are often mole or hired accounts. Funds received from victims are often converted into USD, then into bitcoin, and ultimately withdrawn at various locations outside the country, including Dubai, China, and Hong Kong. WhatsApp and Telegram channels used in these activities are often operated from locations such as Cambodia and Hong Kong.