Cyber Crime
CBI Cracks Down on Ponzi Scheme Cybercrime Modules
The Central Bureau of Investigation (CBI) has registered a case against seven individuals allegedly operating organized cybercrime modules across India, defrauding victims of at least Rs 350 crore.
The agency conducted searches at 10 locations spanning seven states and union territories, seizing virtual assets worth approximately Rs 31 lakh and Rs 34 lakh in cash.
Widespread Network of Fraud
The accused were found to be running operations from various locations, including Delhi, Hazaribag (Jharkhand), Bathinda (Punjab), Ratlam (Madhya Pradesh), Valsad (Gujarat), Pudukkottai (Tamil Nadu), and Chittorgarh (Rajasthan). As part of their criminal conspiracy, they floated numerous Ponzi and fraudulent schemes, enticing investors with promises of high returns through cryptocurrency investments.
“These schemes were promoted through false and deceptive information, luring investors into unregulated deposit schemes that lacked necessary approvals from regulatory authorities like the Reserve Bank of India (RBI),” the CBI stated.
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Seized Assets and Evidence
During the investigation, the CBI recovered a significant amount of digital and physical evidence, including:
- Seven mobile phones, one laptop, one tablet, three hard disks, 10 pen drives, memory cards, SIM cards, ATM/debit cards, and incriminating documents.
- Email accounts linked to the fraudulent activities.
- Multiple bank accounts and Virtual Digital Asset (VDA) wallets tied to cryptocurrency exchanges such as CoinDCX, WazirX, Zebpay, and BitBns.
The agency also uncovered that the accused had converted illegal proceeds into cryptocurrencies to obscure their origins.
Modus Operandi
The cybercriminals promoted their Ponzi schemes through various social media groups, targeting victims with fraudulent promises. Investigations into bank account transactions and cryptocurrency wallets revealed that over the past two years, the accused had conducted transactions exceeding Rs 350 crore.
Victims were duped under various pretexts, including online loans, lucky order schemes, UPI frauds, and internet banking scams.
Regulatory Concerns
The CBI emphasized the unregulated nature of these schemes, which operated without requisite approvals from the RBI and other authorities. The agency is continuing its investigation into the network, aiming to trace the full extent of the fraud and bring those responsible to justice.
Public Advisory
This case serves as a stark reminder for individuals to exercise caution while investing in schemes promising high returns, particularly those involving cryptocurrencies. The public is urged to verify the legitimacy of investment opportunities and ensure they are regulated by appropriate authorities.
