Cuttack: In a major breakthrough, the Odisha Crime Branch (CB) recently exposed a cyber fraud targeting and luring investors with false promises of high returns. The matter came to light after one Kuntal Mazumdar, a senior officer at a private company, reported a loss of Rs 6.28 crore after falling for an investment scam operated through WhatsApp.
The Crime Branch took up the investigation of the case after Mazumdar lodged a complaint. The investigation revealed extensive connections across states and even suspected foreign links in this elaborate scheme.
Revealing their modus operandi, the CB said, the fraud began when Mazumdar was added to a WhatsApp group named 'KOTAK INVESTMENT CLUB' in July 2024, a group he believed to be a legitimate stock market investment platform. Members of the group, posing as professional investors, lured him with promises of high returns and special discounts on shares. They shared alluring offers, claiming that investments would multiply rapidly within days. To build trust, the group members constantly communicated with him, reinforcing their offer and guiding him through initial investments. Within a short span, Mazumdar believed them and invested Rs 6.28 crore, convinced that he would reap substantial profits, the CB stated.
Modus Operandi
As far as execution was concerned, initially, they encouraged Mazumdar to invest small amounts, and within two days, his Rs 50,000 investment reportedly turned into Rs 2 lakh. Excited with success, he increased his investments, with the cyber criminals providing assurances of even higher returns. The group offered him shares at highly discounted rates, claiming their value would increase exponentially. Lured by these assurances, Mazumdar invested larger amounts with the hope of maximizing his returns. However, when he attempted to withdraw his earnings, he was blocked from the group, and the app used for the transactions was disabled. Realizing he had been deceived, Mazumdar reported the incident to the Crime Branch Cyber Crime Unit on August 24, 2024.
The Crime Branch immediately launched an investigation, which exposed the full scale of the scam. Investigators found that the fraud was coordinated across multiple states, with over 100 bank accounts linked to the operation. The scheme involved transferring money through a complex network of accounts in Tamil Nadu, Gujarat, and Rajasthan, as well as routing funds through ATMs, cheques, and cash withdrawals to evade detection. As the investigation progressed, the CB identified a total of 24 suspects across three states and successfully arrested each one. Evidence gathered from the bank records, seized mobile devices, and other documents pointed to a highly organized operation that had cheated many.
Rs 60 lakh in funds have been frozen
According to CID Crime Branch ADG Vinaytosh Mishra, the investigation has uncovered foreign links, suggesting that the operation had possible international involvement. As of now, Rs 60 lakh in funds have been frozen, while the remaining funds traced to various accounts under surveillance. Addressing a press conference, Mishra said, "This case highlights the need for heightened awareness about such scams, especially those that promise people quick profits through online investments.
The 24 arrested suspects, were located through a collaborative operation across states. Of these, nine were apprehended from Tamil Nadu, eight from Gujarat, and seven from Rajasthan. In addition, a total of 100 bank accounts linked to the scheme have been seized, and Rs 16.85 lakh recovered. The Crime Branch has brought some of the accused before the Sub-Divisional Court in Angul, with further court proceedings expected for the remaining suspects.
Key Investigation Details:
• Total Loss: Rs 6.28 crore
• Initial WhatsApp Group: “KOTAK INVESTMENT CLUB”
• Fraud Method: Lured with inflated returns, discounts on shares, and constant communication to build trust
• Suspects: 24 arrested from Tamil Nadu, Gujarat, and Rajasthan
• Asset Seizure: 100+ bank accounts frozen, Rs 60 lakh in funds recovered
