Fake SMS Scam Using Reward App Linked To Rs 10 Crore Fraud, 5 Arrested

Cyberfraudsters often use fake messages and links to trick people into sharing financial details or making unauthorised payments. In one such case, Delhi Police has uncovered a nationwide cyberfraud network linked to more than Rs 10 crore in alleged fraud.

Five people have been arrested in connection with the racket, which has been linked to 544 complaints across the country. The investigation also led police to an account maintained with the National Bank of Kuwait.

According to a report by The Times of India, the investigation began with a credit card fraud complaint involving Rs 2.20 lakh. The case was registered last year after a man received an SMS with a link claiming to be for payment of a traffic challan. Clicking on the link resulted in an unauthorised transaction from his credit card.

How The Reward App Was Used

The mobile number from which the message was sent was being used by the nephew of its registered owner, a school student. His phone contained an application downloaded through a WhatsApp group.

Investigators found that the app offered users small rewards for redeeming points. Each time a user redeemed a reward, the phone screen reportedly remained locked for around 30 seconds. During this period, nine to 12 SMS messages were automatically sent in the background.

The messages carried fraudulent links related to traffic challans, delivery verification and reward points. Users allegedly received Rs 1-3 for each redemption, without knowing that their phones were being used to send these messages.

Money Trail And Arrests

Police also traced an account in the name of Shree Balaji Enterprises in Mumbai, allegedly operated by Moti Singh Baghela of Udaipur. Nearly Rs 2 crore was distributed through small-value transactions to more than 41,000 users in three days, according to police. Baghela was arrested in Mumbai.

Harshpal, who was residing in Lucknow, was arrested for allegedly operating another bank account linked to the network. Vicky, arrested from Dayalpur in northeast Delhi, allegedly helped open current accounts in Delhi and Noida. Vishal Das Vaishnav was arrested in Rajasthan for allegedly arranging the incorporation of Shree Balaji Enterprises and opening its bank account.

According to the report, Barjesh Kumar was arrested in Punjab for allegedly helping open another account using a customer’s documents in exchange for a commission.

Police have recovered 15 digital devices, 59 debit cards, 52 passbooks and cheque books, 14 company stamps, five POS machines and eight QR-code scanners. A car and a gold chain were also seized. Further investigation is underway.