Karnataka Police Uncover Complex Fake Investment Scam Network

An investigation into a fake investment scam in Karnataka led to the arrest of three individuals and the unearthing of a complex network involving mule accounts, modified APK files, international proxies, and cryptocurrency transactions.

The probe began with a case registered by the North Cybercrime Police on May 28, where a 37-year-old man from Peenya was duped of Rs 93.58 lakh in a fake online trading and investment scam.

The victim was lured via a WhatsApp link and added to a group named ‘El Investment Strategies Discussion.’ Scammers then shared fake trading advice between 7 pm and 8.30 pm to entice the victim, eventually convincing him to transfer the large sum in multiple transactions.

Police found that the gang procured current, corporate, and trust bank accounts, along with netbanking credentials and linked SIM cards, from individuals for commission. The account holders were kept in hotels, and their phones were installed with ‘ZNPAY’ and other SMS-forwarding APKs, allowing the suspects to remotely access banking OTPs and siphon off the proceeds of the crime.