SRINAGAR: The Jammu and Kashmir police have busted a transnational multi-crore online investment scam, which allegedly duped over Rs 209 crores from investors through fake trading platforms and phishing websites.
Nine people, including the main accused, have been arrested by the police in connection with the case. Ekant Yogdutt, alias Dr Morphine, an MBBS doctor from Haryana, has been identified by the police as the main handler of the racket.
Yogdutt was arrested by the police at the Indira Gandhi International Airport in Delhi, while returning from China. Other accused were picked up from different parts fo the Valley.
The alleged racket was unearthed by the police during an investigation based on the complaint filed by Firdous Ahmad Mira, a resident of Ganderbal in central Kashmir.
A Special Investigation Team (SIT) was formed by Ganderbal SSP Khalid Ahmad Poswal and experts were roped in to help the police unravel the highly sophisticated and layered financial fraud network.
According to the police, the scam operated through fake online investment portals advertised on social media and search engines, including websites such as "paisavault.com."
"The victims were lured with promises of high returns through cryptocurrency and coin trading schemes. Once investments were made, the funds were diverted into local bank accounts in Budgam, Srinagar, Ganderbal and Baramulla and other locations," a police official said.
He said all such accounts are under the control of fraudsters, who immediately transfer invested amounts into other accounts outside J&K by way of multiple layering. The money was also transferred outside the country to prevent the police from finding the trail.
According to the official, Yogdutt, the main handler had learnt cyber fraud techniques while pursuing his MBBS degree in the Philippines and established links with Chinese nationals.
He said Yogdutt coordinated with several associates in Kashmir who acted as regional heads and account mobilisers.
"These fraudsters approached Below Poverty Line (BPL) account holders and asked them to provide bank accounts and ATM numbers in return for Rs 8-10 thousand per month. There was also involvement of Bank employees who provided QR codes of accounts which are uploaded on fake websites," the police said.
According to police, the fraudsters have established Telegram channels and groups where they regularly upload new QR codes, quickly replacing frozen accounts once cybercrime units flagged suspicious transactions.
So far, police have gathered details of 835 bank accounts and verified transactions in 290 accounts amounting to Rs 209 crore. However, authorities believe the total amount subjected to fraud could exceed Rs 400 crore.
"Further investigation is being conducted to trace out the trail of the entire money and to attach property of accused persons," the police official said.
Police have warned the public not to fall prey to fake websites that promise heavy returns. They have also asked people to not rent out their bank accounts to any individual against the promise of meagre monetary benefits.