Varanasi: A shocking case of financial deception has emerged from the city, where a businessman was allegedly cheated of ₹5.60 crore through a fake mining investment scheme. In a separate incident, ₹35,000 was withdrawn from a victim’s account after his ATM card was allegedly swapped by fraudsters, highlighting the growing menace of both large-scale investment scams and street-level financial frauds.
In the first case, Ashish Gupta, a resident of Augustkunda, has lodged a complaint at the Dashashwamedh police station. According to the complaint, an individual named Pawan Kumar Singh from Nehiya village in Pindra approached him while posing as a well-connected mining industry businessman. The accused claimed he was launching mining projects and offered a lucrative return of 20 percent annually on investment. He further assured involvement in mining licenses and equipment procurement, presenting himself as a credible industry insider.
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To build trust, the accused initially returned small profits, which strengthened the victim’s confidence. Encouraged by early returns, Ashish Gupta invested money in multiple installments between 29 April 2023 and July 2024, amounting to a total of ₹5.60 crore. Investigations suggest that this entire setup was a well-planned scheme designed to defraud investors by creating a fake business identity and projecting false profitability.
Accused Absconds After Securing Crores
According to the complaint, once the large investment was secured, the accused abruptly stopped communication and switched off his mobile phone. Soon after, he went absconding. The victim has also alleged that he is being threatened through third parties, including life threats, after demanding his money back. Police have initiated an investigation and are conducting raids to trace the accused.
ATM Card Swap Fraud Reported in Kakkarmatta
In a separate incident reported from Kakkarmatta’s New Colony area, Ashok Kumar Singh became a victim of ATM fraud. The fraudsters allegedly swapped his ATM card while distracting him during a transaction at a local ATM booth. Shortly after, ₹35,000 was withdrawn from his bank account without authorization.
The victim stated that a group of individuals engaged him in conversation at the ATM, during which his card was secretly exchanged. By the time he realized the fraud, the money had already been withdrawn. A case has been registered at the Bhulupur police station, and an investigation is underway.
Police Warn Against Crowded and Poorly Monitored ATM Booths
Police officials noted that ATM swap frauds typically occur in crowded or poorly monitored ATM kiosks, where criminals engage victims in conversation to distract them before replacing their cards. The cloned or swapped card is then quickly used for cash withdrawals.
Both incidents underline the evolving nature of financial crimes, where fraudsters are using increasingly sophisticated methods ranging from fake high-return investment schemes to quick ATM-based thefts. While one case involves organised financial deception running into crores, the other reflects opportunistic street-level fraud.
