Delhi Police have arrested two individuals involved in a sophisticated stock investment scam operated through social media, highlighting the growing threat of online investment fraud and the importance of due diligence.
Key Points
- Two individuals, Shashikant Sharma and Deepak, have been arrested in Delhi for allegedly running a fake stock investment scheme via social media.
- The fraudsters lured victims with promises of high returns on initial public offerings (IPOs) and provided fake stock recommendations.
- The accused used social media groups and mule bank accounts to facilitate the transfer of fraudulent funds.
- Police have linked 29 complaints to the syndicate, indicating a widespread fraudulent scheme with no actual investments made.
- The investigation is ongoing to identify other members of the network and recover the remaining defrauded funds.
Two people have been arrested for allegedly cheating a man of around Rs 7 lakh on the pretext of high returns through a fake stock investment scheme operated via a social media app, police said on Thursday.
The accused, identified as Shashikant Sharma and Deepak, were apprehended from the Palam area in Delhi on April 5, they said.
According to police, the case was registered at Cyber Police Station Shahdara on the complaint of a man who alleged that he was duped of Rs 7 lakh after being lured into an investment scheme promising high returns.
The complainant told police that fraudsters posing as a firm's representatives added him to a group on a social media platform. They shared fake credentials and posed as legitimate stock brokers, initially offering free stock recommendations and analysis reports, he said.
Over time, the victim was persuaded to invest money and was shown fictitious investments in initial public offerings, with his portfolio reflecting false utilisation of funds, police said.
When he tried to withdraw the amount, he could not and realised he had been cheated.
Investigation and Modus Operandi
During the investigation, police found that the accused were part of a cyber fraud syndicate that targeted victims through social media groups, luring them with fake investment opportunities and routing the money through multiple bank accounts before siphoning it off.
Police traced a portion of the defrauded amount to a bank account linked to a shell entity operating from a virtual office in central Delhi.
The accused were involved in creating such entities and arranging mule bank accounts to facilitate the transfer of fraudulent funds, they added.
Police recovered two mobile phones and digital evidence from the accused, which is being analysed.
So far, 29 complaints have been linked to the syndicate, and investigators believe no actual investments were made, with all transactions being part of a fraudulent scheme.
Further investigation is underway to identify other members of the network and trace the remaining amount, police said.
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