Fresh advisory on stock scams, ‘digital’ arrests

Close on the heels of Prime Minister Narendra Modi urging people to guard against the menace of ‘digital’ arrests, probe agencies said they were taking action against this category of cybercrime with the ED filing a chargesheet in one such case and the Indian Cyber Crime Coordination Centre (I4C) issuing a fresh advisory.

The Enforcement Directorate (ED) issued a statement on Saturday, saying it filed a prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru last month against eight accused who allegedly “lured” common people through “fake” IPO allotments and stock market investments through fraudulent apps.

“Probe found that a huge network of cyber scams in India, involving fake stock market investments and digital arrest schemes, were executed primarily through social media platforms like Facebook, Instagram, WhatsApp and Telegram.

“Known as ‘pig-butchering’ scams, stock market investment scams entice victims with promises of high returns, using fake websites and misleading WhatsApp groups that appear connected to reputable financial firms,” the ED said.

Scammers, it said, established credibility through fake ads and fabricated success stories, ultimately leading victims to invest significant amounts.

The ED said some victims of this scam were “manipulated” under the guise of a fake arrest (digital arrest) by the Customs and the CBI, ultimately making them transfer huge funds to various shell or dummy companies under fake “fund regularisation process”. It said ‘digital’ arrest scams involve fraudsters posing as law enforcement officials, intimidating victims into transferring their savings by fabricating scenarios that suggest illegal involvement of the victim, the federal agency said.

The I4C issued a public advisory on Sunday asking people to “beware of digital arrests” reminding that “those making video calls are not police, CBI, Customs officials or judges”.

The advisory asked people not to fall for these “tricks” and report such crimes “immediately” by calling the national cybercrime helpline 1930 or logging at the portal www.cybercrime.gov.in.

PM Modi had during his monthly ‘Mann ki Baat’ radio address flagged the issue of fraudsters targeting people with ‘digital’ arrests and urged people to adopt the mantra of “stop, think and take action” when faced with such a scam.

Executed primarily through social media

Cyber scams in India, involving fake stock market investments and digital arrest schemes, being executed primarily via social media platforms like Facebook, Instagram, WhatsApp & Telegram