Cyber Crime
Gang Busted in Rs 56 Crore Fake Algo Trading Scam Targeting 157,346 Victims; Fraudster Buys Bangalore Resort with Illicit Funds
PUDUCHERRY: The Puducherry Cyber Police have dismantled a major online fraud operation that deceived numerous investors across India, leading to the arrest of seven individuals involved in the scam.
Senior Superintendent of Police (Crime & Investigation) R. Kalaivanan revealed to the press that the investigation uncovered 64 bank accounts linked to the fraudulent scheme, through which Rs 56 crore in illicit funds were transacted over the past nine months.
During the operation, authorities seized over 50 computers, luxury vehicles, a high-end motorcycle, and numerous credit and debit cards. The fraudsters used the stolen money to purchase luxury bungalows in Bengaluru and resorts in Yercaud, Puducherry, and Kodaikanal.
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Investigators believe this is just the beginning and have identified 1,57,346 potential victims across India through the websites of Global Software Solution, Algo Master Trading, and Gleam Global Services. The police plan to contact these individuals to assess the extent of their losses.
The fraud came to light after a local resident filed a complaint. Kokila, the complainant, had signed up with Global Software Solution Trading Company and later received a call from someone claiming to represent Global Software Solution and Algo Master Trading. She was convinced to invest in their robotic trading software, initially paying for the software and subsequently making payments totaling ₹18 lakhs for trading. She never saw any returns and was unable to contact the fraudsters.
Realizing she had been defrauded, Kokila lodged a formal complaint with the Puducherry Cyber Crime Police, leading to a case being filed under sections 318(4), 319(2) BNS, and Section 66 D of the IT Act, 2000.
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Over the course of a two-month investigation, the police used advanced technology to track bank transactions and analyze digital communications, leading them to Bangalore and Neyveli, which were linked to an international network.
On August 31, a special team led by B.C. Keerthy conducted a successful raid in Bengaluru and arrested the primary suspects: Thufail Ahmed, Praveen, Jagadish, Ansar Muhammad, Ramachandran, Vimal Raj, and Prem Anand.
The investigation revealed that the fraud network had been operating from multiple call centers across India since 2014. The scam utilized international internet connections to avoid detection, with call centers operating from locations different from their official addresses.
The cyber police have identified Nawshad Khan and Tufail Khan from Neyveli as the key orchestrators of the scam and are searching for five additional suspects who remain at large.
The Puducherry Cyber Police have advised the public to be cautious when dealing with online trading platforms that promise high returns with little risk. “We urge anyone who may have been affected by such schemes to come forward and report their experiences,” Mr. Kalaivanan stated.