Bhubaneswar: Odisha Crime Branch’s Criminal Investigation Department (CID-CB) issued an advisory to protect people from falling prey to the rampant rise in online investment frauds, today.

There has been a steep and concerning rise in such cases of fraud through online investment apps (WhatsApp group link, Telegram group line etc), these days. Many people have lost money by investing in fake online schemes. Fraudsters have been luring people on the pretext of high returns in a short time with investments in stock markets, shares, mutual funds, and IPO allotments.

Most of these investors have lost their hard-earned savings. Exploiting the trust and greed of these people, online investment fraudsters have caused them devastating financial losses.

In the year 2023, a total of 22 investment fraud cases were registered by the CID-CB cybercrime police station, involving nearly Rs 8.5 Crore in fraudulent amounts. Alarmingly, within just four months of 2024, a total of 25 more cases have been registered, with fraud amounts totaling to around Rs 17 crore. Though the cybercrime wing of CID-CB has been able to arrest many of the criminals in registered cases, very less amount of money could be recovered from them as compared to the losses incurred by victims as either the money has already been used by these criminals or, in some cases, it has been siphoned off outside the country.

Fraudsters operate by first inducing individuals to join WhatsApp and Telegram groups promising high returns on investments in a short duration. These groups are populated by their gang members, who make innocent people believe them. They claim to have profited from the suggested investments.

The fraudsters claim that the investments are made into SEBI-registered and verified companies by using genuine photographs of industrialists or bankers to gain the confidence of the victims.

However, the investment platforms recommended are fraudulent and are designed to display fake returns and wallet money. When victims attempt to withdraw their funds, they are compelled into depositing more amounts for withdrawal, further pushing the victims in a cycle of fraud and financial losses.

It is noteworthy that the accounts utilised by the fraudsters are often mole or hired accounts.

Funds received from victims are often converted into US Dollars and then into Bitcoin and ultimately withdrawn at various locations outside the country, including Dubai, China, and Hong Kong.

The WhatsApp and Telegram channels used in these activities are often operated from different remote locations such as Cambodia and Hong Kong.

In recent years, there has been a concerning increase in cases of investment fraud, with perpetrators often utilizing WhatsApp or Telegram groups to carry out their scams. These groups often promise unrealistic returns and encourage individuals to deposit money into suggested accounts.

CID-CB requested the public to exercise extreme caution when engaging in online investment activities and to carefully verify the authenticity of entities offering financial services.

CID-CB urged people to spread a word with their family and friends’ groups and especially among elderly persons who might be lured by the fraudsters into investing their hard-earned money and their life time savings into such fake online investment groups.

If anyone comes across any suspicious online activities or becomes a victim of cyber-related crimes, he/she should report such incidents promptly to the toll-free number 1930.