Probing a Rs 2.5-crore online share trading fraud, cyber sleuths of Pimpri Chinchwad police have arrested a debt-ridden textile trader from Surat for allegedly allowing fraudsters to park money from cyber scams in his bank account, which was further funnelled to international masterminds operating from Dubai via cryptocurrency and hawala routes. Investigation has revealed that his bank account has been flagged in a staggering 56 cyber crime cases spanning across India and saw transactions worth several crores over the last few months. An FIR was registered on May 25 at Dighi police station after two brothers — both in their 50s and top managers at private companies — lost a total of Rs 2.45 crore in an online share trading fraud. The brothers were lured and duped by cyber fraudsters who misused the name of an international brokerage firm and offered tips for high returns on investments. The two victims were asked to log on to a fraudulent stock trading app, which kept showing them high profits on the amounts they had sent to dubious bank accounts. On the total Rs 2.45 crore the two brothers had sent, the fraudulent platform showed them earnings of over Rs 14 crore. The two realised they had been cheated after they could not withdraw any amount from their ‘profits’. The cyber cell of the Pimpri Chinchwad police led by Assistant Inspector Praveen Swami launched a probe in the case. Initial investigation revealed that a part of the money siphoned off was sent to a specific bank account in Surat, Gujarat. The probe revealed that the account was in the name of a business entity Shri Radhe Enterprises owned by one Nikunj Ashwinbhai Makwana (34), a resident of Punagam area of Surat. “A team was sent to Surat to apprehend Makwana in the first week of this month. When our team reached his house, we found that the phone number registered in his name was with his wife. The family members told us that he had not been in contact with them. However, a probe into some technical leads revealed that Makwana was hiding in the same area and our team arrested him and brought him to Pune,” said an officer from the cyber cell. “We found that Makwana has a textile trading business and is deep in debt after incurring heavy losses in business. He owed money to a lot of people and we believe he started doing this to pay off his debt. We now know that he had been receiving a percentage of the total money received in his account — somewhere between 5 and 10 per cent. The established money trail indicates his collaboration with an operative from Rajasthan and two funneling funds to international masterminds in Dubai by first converting the money into cryptocurrency. This further makes it difficult for investigation agencies to track. He is also believed to have used the hawala route for sending money to masterminds. There are indications that Makwana initially connected with cyber racketeers through other businessmen associated with these operatives,” the officer added. Swami said, “The bank account used by Makwana has been flagged for receiving funds in as many 56 cases registered across India. We are now investigating the upward and downward linkages of Makwana as part of this internationally operated syndicate.” Earlier in April this year, in a crackdown against a group of alleged “cyber foot soldiers”, the Pimpri Chinchwad police had arrested five young men in their 20s who worked as delivery boys and allegedly operated a network of 120 bank accounts which had been receiving funds from cyber frauds. These suspects also facilitated purchase of cryptocurrency to be sent to the wallets of their international masterminds for a meagre cut. The probe revealed that these 120 accounts had together seen transactions close to Rs 15 crore and had been flagged in at least 75 different cyber crime cases reported across the country. Over the last five months, the Pune and Pimpri Chinchwad police have reported what their cyber investigators are calling an epidemic, a worrying surge in online share trading fraud cases. Fraudsters employ a variety of baits, including trading tips, virtual lectures, mobile apps, and enticing promises of exorbitant returns. SEBI’s advisory on February 26 underscored these tactics, cautioning against fraudsters posing as SEBI-registered entities and exploiting social media platforms to peddle fraudulent trading schemes.
