Victims were lured into depositing funds through UPI by promising high returns.
In an investigation spanning over a year, the CBI has unearthed a sophisticated, complex network involving foreign elements which cheated Indians of hundreds of crores by luring them with job and loan offers as well as fooling them into investing in Ponzi schemes.
A complex web of UPI accounts, cryptocurrency and international money transfers was used to move the money and the agency recently carried out raids in several places linked to the suspects after analysing the money trail.
Worryingly, the CBI investigation points to the involvement of 137 shell companies, many of which were registered with the Registrar of Companies in Bengaluru, and their directors. Some of these directors were also associated with a Bengaluru-based payout merchant.
How They Operated
According to a CBI release, the investigation - which was part of the agency's operation Chakra-II - began in 2022. A case was registered based on various inputs, including one given by the Indian Cyber Crime Coordination Centre (I4C) under the Union Home Ministry.
The agency said the fraudsters allegedly used various social media platforms and their advertisement portals, encrypted chat applications and SMS to entice victims with promises of loans, part-time jobs and investments in Ponzi schemes and multi-level marketing initiatives.
Victims were lured into depositing funds through UPI by promising high returns. The money was laundered through a complex network of UPI accounts and ultimately converged into cryptocurrency or gold purchases using falsified credentials.
The agency also identified 137 shell companies engaged in fraudulent activities, and a significant number of these were registered with the Registrar of Companies in Bengaluru. After intense investigations, the directors of these companies were identified and some of these were also found to be linked to a Bengaluru-based payout merchant.
This merchant controlled around 16 bank accounts where Rs 357 crore was funnelled and the money was then transferred to various accounts. The release said searches were conducted in Bengaluru, Cochin and Gurgaon and yielded substantial evidence, shedding light on the alleged activities of the shell companies' directors.
Foreign Link
The accused were also found to be associated with a foreign national. While investigating two chartered accountants from Bengaluru - who allegedly altered directorships and contact information associated with the shell companies - searches were conducted on their premises.
The agency said the searches led to the recovery of documents, email communications and WhatsApp chats revealing their alleged role in facilitating foreign national's involvement in the fraud.
Further investigation in the case is on.