In a significant breakthrough, the Surat police have uncovered a cyber fraud gang operating out of Dubai that was luring investors with promises of high returns in the stock market. This gang is believed to have conducted transactions worth ₹235 crores and has reportedly defrauded around 11,000 people, enticing them with returns of 7% to 11% monthly on their investments.
The scam involved the creation of fake companies like ‘Innovative Trade’ that claimed to provide unimaginable returns from stock market investments. Victims were required to invest for a minimum of 18 months to be eligible for these promised returns. Investigations reveal that the gang operated through a network based in Dubai and had spread its activities across 26 states in India, leading to numerous complaints lodged against them.
The fraud was based on a multi-level marketing pyramid scheme, where existing customers were encouraged to recruit new investors, receiving bonuses based on their rank within the company. This scheme appeared attractive to many, but it was ultimately a scam designed to enrich the perpetrators at the cost of unsuspecting investors.
On June 21, the cyber crime cell of Surat raided the office of Innovative Trade located in IT Park, Utrann, Surat. During the raid, evidence of illegal activities was found, leading to further raids in Rajkot. The police have registered offenses under various sections of the Prize Chit and Money Circulation Schemes (Banning) Act and the IT Act.
So far, three key suspects have been arrested, including Danish, who allegedly led the operation along with his family members. The police are continuing their investigations to apprehend additional members of the gang, many of whom are currently at large.
This incident highlights the growing threat of cyber fraud in India and underscores the importance of vigilance among investors. Authorities urge the public to be cautious of offers that seem too good to be true and to conduct thorough research before making any investments.
As the investigation continues, the police are committed to ensuring that all victims are identified and justice is served. They are also working to raise awareness about cyber fraud schemes to prevent future occurrences.
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