NEW DELHI: The Delhi Police on Wednesday arrested a fraudster accused of cheating a woman out of ₹23.5 lakh by promising lucrative returns through cryptocurrency trading.

The 32-year-old woman from Usmanpur, Delhi, filed a police complaint stating she was deceived by individuals posing as representatives of Binance Holdings, a reputable cryptocurrency trading company. She initially invested ₹1,000 and received an instant return of ₹1,300, which tempted her to invest more.

After several transactions, the fraudsters claimed her account was frozen and demanded more money to unfreeze it. She was coerced into transferring larger amounts, including taking a loan of ₹15 lakh, to unblock her funds. A few days later, her bank contacted her regarding multiple large transactions from her account. When the bank informed her that her money had been transferred to suspicious accounts, she realized she had been duped and filed a first information report (FIR) on May 10 under sections of the Indian Penal Code related to cheating.

Fake Portals and Multiple Bank Accounts

The Delhi Police North East Cyber Crime Cell discovered that the scam was run by a network of cybercriminals operating in the Maujpur area of North East Delhi. Technical surveillance revealed that the money was deposited in 11 different banks, with ₹9.64 lakh credited to an ICICI corporate bank account in Meerut. A detailed analysis showed that approximately ₹1.44 crore was transacted through this account in a single day. The police traced the debit transactions' internet protocol (IP) logs to a rented accommodation in Maujpur.

During a subsequent raid, the police arrested Mohammad Daud (29). While part of the scammed amount was frozen in the ICICI Bank account, the rest had been transferred to various accounts, the police said.

Modus Operandi and Network

Deputy Commissioner of Police (North East) Joy Tirkey explained that Daud and his associates would connect to WIOM networks via the Wi-Fi of existing users in Maujpur by paying ₹10 each time. WIOM provides internet access for ₹10 within the coverage area of any Wi-Fi router.

The scheme involved impersonating representatives of reputable companies like Binance and enticing victims to invest through fake investment portals. The money was then laundered through multiple bank accounts, with Daud pocketing substantial commissions for each transaction, according to the police.

However, when the police attempted to track down Daud’s associates, they found that the account holders of the 11 bank accounts were either unreachable or had left the addresses provided in the bank details. During interrogation, Daud allegedly confessed to his involvement in the scam, citing a desire for a lavish lifestyle as his motivation. He had reportedly been operating with his associates for over a year.

By: Express News Service
Date: May 16, 2024