Kashif Mirza, a class 11th student, targeted social media users
A 19-year-old man in Rajasthan's Ajmer has been arrested for allegedly cheating over 200 people of about Rs 42 lakh through a fake investment scheme, police said on Monday.
Kashif Mirza, a class 11th student, targeted social media users by making fake promises that they could make substantial profits.
Police said that Mirza was an "influencer" and had a huge number of followers on Instagram.
He told the victims that they would get Rs 1,39,999 for investing Rs 99,999 for 13 weeks.
"Initially, he provided some investors with the profit so that they get influenced and tell more people," an official told NDTV.
A Hyundai Verna, a cash counting machine, phones and laptops were recovered from him.
He has now been sent to a two-day police remand.
A person should always do proper research about the company or individual before investing.
Fraudsters usually offer guaranteed returns and lack transparency in their investment strategies.
The investor should also check if the investment company and the individuals promoting investment schemes are properly regulated by relevant financial regulatory authorities.