Bhubaneswar: The CID- CB of Odisha Police has issued an important advisory to protect citizens from falling prey to the rampant rise in online investment fraud cases in the state.
In a release issued here Saturday, the CID-CB said there has been a steep and concerning rise in cases of fraud through online investment apps, WhatsApp group links, Telegram group links, etc. Many people, it said, have lost money by investing in such fake online schemes.
The fraudsters lure people with promises of high returns in a short time through investments in stock markets, shares, mutual funds, and IPO allotments. However, most of these investors have lost their hard-earned savings, the advisory said, adding that by exploiting the trust and greed of these people, online investment fraudsters have caused them devastating financial losses.
In 2023, a total of 22 investment fraud cases were registered by the CID-CB Cyber Crime PS, involving nearly Rs. 8.5 crores in fraudulent amounts. Alarmingly, within just four months of 2024, a total of 25 more cases have been registered, with fraud amounts totalling approximately Rs. 17 crores.
Though the Cyber Crime Wing of CID-CB has managed to arrest many of the criminals in the registered cases, only a small amount of money could be recovered compared to the losses incurred by victims, as the money has already been used by these criminals or, in some cases, siphoned off outside the country.
The fraudsters, the Crime Branch of Odisha Police said, operate by first inducing individuals to join WhatsApp and Telegram groups promising high returns on investments in a short duration. These groups are populated by their gang members, who make innocent people believe they have profited from the suggested investments.
The fraudsters claim that the investments are made into SEBI-registered and verified companies using genuine photographs of industrialists or bankers to gain the victim’s confidence. However, the investment platforms recommended are fraudulent, designed to display fake returns and wallet money, the CB said.
When the victims attempt to withdraw their funds, they are compelled to deposit more amounts for withdrawal, further pushing them into a cycle of fraud and financial losses.
The CID-CB said the accounts utilized by the fraudsters are often mule or hired, and the funds received from victims are often converted into USD, then into bitcoin, and ultimately withdrawn at various locations outside the country, including Dubai, China, and Hong Kong. WhatsApp and Telegram channels used in these activities are often operated from locations such as Cambodia and Hong Kong.
It urged the public to exercise extreme caution when engaging in online investment activities and to carefully verify the authenticity of entities offering financial services.
In recent years, there has been a concerning increase in cases of investment fraud, with perpetrators often utilizing WhatsApp or Telegram groups to carry out their scams. These groups often promise unrealistic returns and encourage individuals to deposit money into suggested accounts.
The CID-CB has appealed to citizens to spread the word among their family and friends, especially older people who might be lured by fraudsters into investing their hard-earned money and lifetime savings into such fake online investment groups.
The advisory said if citizens come across any suspicious online activities or become victims of cyber-related crimes, they should report such incidents promptly to the 1930 toll-free call centre.
UNI