Indore Police Bust Investment Fraud Ring Operating From Cambodia

Indore police dismantled an investment fraud ring operating from Cambodia, arresting five individuals involved in luring victims with promises of high returns through a sophisticated online scam.

A gang involved in cheating people with the promise of high returns on investment was busted in Indore in Madhya Pradesh, leading to the arrest of five persons, a police official said on Friday.

While the proceeds of crime were routed through different bank accounts in India, the WhatsApp account used to trap investors was being operated from Cambodia, Deputy Commissioner of Police Anand Kaladgi told reporters.

Modus Operandi Of The Investment Fraud

Vishal Chauhan (25), Ganesh Rao (23), Rashmi Ranjan (24), Ashish Panwar (41) and Naivedya Sironja (20) had provided dummy bank accounts (mule accounts) to the gang across different states on a commission of 1-2 per cent, he added.

The probe began after a Indore resident lodged a complaint at Bhanwarkuan police station claiming he was cheated of Rs 93 lakh, the official said.

How Victims Were Lured

"The gang lured people on social media platforms with promises of high returns from stock market investments. They would add victims to a WhatsApp group and then get them to download a dummy mobile application," he said.

The complainant purchased shares worth around Rs 93 lakh through the application and was shown that he had made a profit of Rs 4 crore.

The complainant was unable to withdraw this amount, which made him realise he had been cheated, the official said.

Investigation And Further Actions

"We have found 20 to 25 dummy bank accounts of the gang. Transactions in these accounts have been stopped after correspondence with banks, and a detailed investigation is underway," the DCP said.

Chauhan and Rao belong to Maharashtra, Ranjan hails from Odisha, while Panwar and Sironja are residents of Madhya Pradesh, he said.