Deepfake video used for share fraud: 5 held from MP, Delhi for siphoning funds via crypto route

Probe has now revealed that it was a deepfake video directing the viewers to a malicious platform. After the complainant clicked the link, he was directed to a WhatsApp group. Subsequently he was manipulated into downloading a fraudulent application which promised very high returns on investments.

The complainant transferred Rs 54.6 lakh to fraudulent mule accounts between March 27 and May 9. And the corresponding profit on the fraudulent app was shown as Rs 2.52 crore — which was over 400 per cent of the investment.

While trying to withdraw his “profit”, the complainant realised that he had been cheated. He approached the Cyber crime police station of Pimpri Chinchwad police and an FIR was registered on July 12.

As the team from Cyber crime police station of Pimpri Chinchwad police launched a probe, they zeroed in on a particular bank account that had received Rs 10 lakh of the total fraud amount.

The funds were further diverted into two accounts. All these three accounts belonged to an entity based out of Indore named Mahavir Enterprises.

A team from the police station was sent to Indore and a suspect identified as Punam Mangilal Jain (42), who owns a cold drinks trade business, was arrested. Probe revealed that he had opened seven accounts in the entity’s name and four of them had received funds from the cyber criminals.

Police further arrested his accomplice Ganesh Punamchand Dhole (28), with whose help accounts had been opened.

Investigation into the technical leads obtained from these two, led the investigation team to three suspects in Delhi who in fact operated these accounts as mule handlers and converted the money to Tether cryptocurrency to be sent to international masterminds.

These suspects were getting their cuts from these transactions, a probe has revealed. The police subsequently arrested the three suspects from Delhi identified as Rajesh Jaiprakash Kushwah alias Rocky (28), Pradeepkumar Madanlal Ken (30) and Harshit Omprakash Ghotan (28).

For more than a year now, 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 applications, and enticing promises of exorbitant returns.

The Indian Express had earlier reported that deepfake videos of stock market experts and industry leaders urging investors to join WhatsApp groups or download spurious trading apps were part of the evolving strategies of the cyber criminals perpetrating the share trading frauds.