Amid rising digital crimes and the innovative ways fraudsters use to cheat people, the Enforcement Directorate (ED) has filed a prosecution complaint against eight people. The I4C has also issued a new advisory asking people to be vigilant against such scams
Don’t fall for the promise of huge returns on your investment by online apps or portals. It is a tactic known as ‘Pig Butchering’, which is used by fraudsters to lure people into investing money into dubious schemes with the false promise or hope of earning profit.
Remember, no matter how high the stock market rises, no one can guarantee you returns on your investment.
As the world is getting more digitalised, cyber fraudsters are finding newer ways to deceive people, either by luring them to make quick money from the stock market, offering employment, updating their documents in bank accounts, or impersonating government officials or police to ‘digital arrest’ innocent people. The latter is known as the digital arrest.
In fact, there are many stories of people falling prey to the tricks of fraudsters who show promising returns on their fraudulent apps or portals, and create ‘misleading WhatsApp groups’ to lure people into investing money in fake schemes. In some instances they also use the threat of digital arrest to entrap people into divulging their details, which is then used to siphon off funds or commit other frauds. But do remember that there is no provision of digital arrest under Indian law. It is not legitimate either.
Recently, the Enforcement Directorate (ED) filed a prosecution complaint against eight individuals accused of creating shell companies, fake documents, and for collecting and integrating crime proceeds into the banking system, and laundering money.
ED filed the chargesheet on October 10, containing the names of the accused as well as the shell companies created for cheating people. The names of the accused are Charan Raj C, Kiran S K, Shahi Kumar M, Sachin M, Tamilarasan, Prakash R, Ajith R, and Aravindan. There are also 24 companies related to these individuals, which they used for cheating people of their money.
To protect oneself from such frauds, here are a few things you should know about how the modus operandi works and how you can keep yourself protected from such scams.
Pig Butchering: In this scam, the fraudsters entice victims with the promise of high returns on their investment, luring them through fake websites and WhatsApp groups that appear to be connected to reputable financial firms.
Fraudsters create fraudulent portals and apps and use digital mediums, such as WhatsApp, Telegram, Facebook, and Instagram to reach out to potential victim. Once the victim becomes part of their fabricated group, they lure him/her to invest money with the promise of offering them high returns. Initially, withdrawal is also allowed, but as the investment grows, they impose restrictions, before allowing for the withdrawal of funds, and then cut off all contact with the victim.
Digital Arrest: Fraudsters impersonate as officials from law enforcement agencies, such as police, the Central Bureau of Investigation (CBI) or Customs, and approach the victim over the phone.
The usual spiel is that a parcel has arrived in the name of a victim that is lying with the courier company. They further allege that the parcel contains illegal items, such as drugs, or other contraband and the recipient (for whom the parcel is intended) will be arrested.
They also spin fake stories about the victims’ involvement in money laundering activities and use coercive tactics to intimidate the victim. They ask the victim to be available virtually and tell no one about it, and also transfer money to dummy bank accounts if they want to settle the matter and escape from arrest.
According to the ED chargesheet, the fraudsters used untraceable SIM cards to pull off these crimes. These SIMs were linked to the bank accounts of shell companies. These companies had fake bank accounts and addresses. These accounts were used to collect funds from victims and then convert into cryptocurrency before transferring them abroad.
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The Indian Cyber Crime Coordination Centre (I4C), which is a government initiative against cybercrime, has issued a fresh advisory recently, asking people to be aware of such frauds and report it as soon they come across any.
The advisory said that “those making video calls are not from the police, CBI, Customs or judges (judiciary)”, adding that people should be aware of these tactics and not fall prey to them. However, if anyone comes across such a case, they should report about it immediately on 1930, a helpline number to call, report, and lodge a complaint. One can also file a complaint on the government’s official cybercrime portal, the advisory said.
It added that victims should report the crime to the law enforcement agencies and the police as soon as possible. The sooner it is reported, the better are the chances of recovery, the advisory further said.