Hyderabad: In a major breakthrough, the Hyderabad Police recently exposed a colossal fraud ring masterminded by Chinese handlers that targeted unsuspecting Indians, resulting in losses exceeding 700 crores in less than a year. The shocking revelations have sent shockwaves through the nation, raising concerns over cybercrime and financial security.
The elaborate scam operated by the fraudsters involved routing the ill-gotten gains to China via Dubai, with some of the funds being directed to an account operated by the Lebanon-based terror group Hezbollah. Law enforcement authorities promptly alerted central agencies about the situation, and the cybercrime unit of the Union Home Ministry was provided with detailed information to assist in the investigation.
“We are alerting Central agencies regarding this and the cybercrime unit of the Union home ministry has been given the details,” a senior police officer of Hyderabad police said.
The trail of the fraudulent money led investigators to suspect that a portion of the funds had been converted into cryptocurrency and funnelled into a wallet controlled by Hezbollah. As part of their relentless efforts, the Hyderabad Police arrested nine individuals connected to the scheme, with four apprehended in Hyderabad, three in Mumbai, and two in Ahmedabad. However, their hunt for at least six more individuals involved in the scam remains ongoing.
The case came to the attention of the Hyderabad Police's cybercrime branch in April after a victim approached them, claiming to have been swindled out of 28 lakhs. Subsequent inquiries unveiled that the perpetrators lured innocent people under the guise of investment-cum-part-time-jobs. Promising simple tasks such as liking YouTube videos or writing Google reviews, the scammers would compensate victims for completing these assignments.
Victims, having lost an average of 5-6 lakhs, were initially contacted through platforms like Telegram and WhatsApp. Entrusting small amounts, often around 5,000, they were promised lucrative returns, sometimes even doubling their initial investment after completing the first task. As the victims grew comfortable and confident, the criminals coaxed them into investing larger sums through multiple transactions.
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To maintain the illusion of legitimate earnings, the scammers showcased fake windows displaying the purported profits earned by the investors. However, they cleverly withheld the option of withdrawing any money until all the tasks were completed, by which time victims had already invested substantial sums.
Shiva, one of the defrauded individuals, initiated the investigation when he reported his loss of 28 lakhs. The police discovered 48 bank accounts connected to the scam, all under the names of shell companies. Initially estimating the fraud to be around 584 crores, the authorities later unveiled an additional 128 crores that had been illicitly obtained through the scam. In total, 113 Indian bank accounts were linked to this nefarious operation.
The fraudulent funds traversed through numerous accounts and were eventually converted into cryptocurrency before being funnelled to China via Dubai. The masterminds of the scheme, based in China, remotely operated the Indian accounts that were initially set up with Indian SIM cards. The culprits collaborated closely with Chinese operators to execute the scam.
One crucial account was traced back to a Hyderabad-based entity called Radhika Marketing Company, which was associated with Munawar from the same city. Munawar, along with three accomplices, travelled to Lucknow, where they established 65 accounts using the names of 33 shell companies. The group was paid handsomely for each account, but their illicit activities were halted when the police managed to track down Munawar and his associates.
Under interrogation, the group revealed that they acted on the instructions of three other individuals named Manish, Vikas, and Rajesh, who remain at large. These key players orchestrated the opening of the 65 accounts instrumental in moving over 128 crores of fraudulently obtained funds on behalf of the Chinese masterminds, identified as Kevin Jun, Lee Lou Langzhou, and Shasha.
Further investigations exposed that some of the accounts were being operated by a Dubai-based network through remote-access applications. This Dubai group had direct ties to the Chinese network and was responsible for transferring the illicit funds into cryptocurrency wallets. Notably, Ahmedabad-based Prakash Mulchandbhai Prajapati and Kumar Prajapati were among those arrested as they were connected to some of the wallets.
Additionally, three individuals from Mumbai were also apprehended, and they provided valuable information about at least six other culprits based in Dubai, deeply involved in the fraudulent operation.
The magnitude and intricacy of this fraud ring have left authorities and citizens alike alarmed. This incident serves as a grim reminder of the growing threat posed by cybercrime and the importance of remaining vigilant against such scams. The Hyderabad Police's relentless pursuit of justice in this case serves as a testament to their commitment to safeguarding the interests of the public and bringing criminals to justice.
As investigations continue, authorities remain determined to apprehend all those involved in this massive fraud ring, while also urging the public to exercise caution and report any suspicious activities to help curb the rise of cybercrimes in the country.
