Scam: A shocking case of fraud has emerged from Navi Mumbai, Maharashtra, where a chemical engineer lost a staggering sum of 3.7 crore rupees to a social media scam promising high returns on investments. According to an official statement released on Tuesday, six individuals have been accused of deceiving the engineer.

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Unraveling the Deception

The victim, a 43-year-old resident of Vashi and an employee at a private company, came across a tantalizing link on his social media feed on February 17, 2024. This link purported to offer lucrative opportunities for investment in shares. Intrigued, he clicked on it, only to be inundated with promises of significant profits through share investments. Gajanan Kadam, senior inspector at Navi Mumbai cyber police station, revealed that the victim engaged in WhatsApp conversations with one of the fraudsters, who guided him to join various groups on the messaging app.

These groups, supposedly managed by administrators, facilitated his investments by providing different links. Shockingly, one of the fraudsters even masqueraded as a senior officer associated with securities in a reputed bank. Between February 17 and April 24, the victim poured in 3.7 crore rupees. However, his euphoria was short-lived as he soon discovered that his investments in shares and Initial Public Offerings (IPOs) had purportedly skyrocketed to approximately 22 to 23 crore rupees.

Reality

When the victim attempted to withdraw his funds, he hit a brick wall. Despite numerous attempts to contact the provided numbers, he was met with silence. Frustrated and realizing he had been duped, he lodged a complaint on Saturday. This prompted the police to register a case against the accused individuals under sections 419, 420, and 34 of the Indian Penal Code, along with relevant provisions of the Information Technology Act.

Rising cyber fraud concerns

In related developments, the National Cyber Crime Portal (NCRP) has been inundated with 31 lakh complaints related to cyber frauds since 2020 until February 2024. This surge includes notable incidents such as the AIIMS cyber attack and ICMR data leak. However, arrests in such cases remain dismally low, accounting for less than 1 percent of the total registered cases. The slow pace of investigations poses a significant challenge, particularly in cases involving loan lending apps, which wreak havoc on India's financial infrastructure and disproportionately affect individuals from low-income groups.

These concerns have resonated in government circles, including the Financial Stability and Development Council (FSDC), sparking discussions on the pressing need for swift action. Chinese-operated loan lending apps have come under scrutiny for transferring funds abroad, causing ripple effects across financial institutions and individuals alike.

In response, the central government has called upon tech giants like Google and Meta to step up efforts by deploying experts and closely monitoring ad campaigns promoting illegal apps. Tragically, multiple suicide cases have been linked to harassment and extortion by such operators.

Stakeholders have elevated these concerns to the Ministry of Home Affairs (MHA), catalyzing discussions on enhancing the pace of investigations and arrests. It is anticipated that the MHA will convene meetings with various agencies to tackle these challenges head-on.