A 40-year-old computer dealer from Mumbai’s Opera House area fell victim to a cyber fraud scheme, losing ₹1 crore in a crypto investment scam between March and August 2024. The businessman, residing in Thakurdwar, delayed reporting the fraud but eventually filed a complaint with the South Cyber Police. Authorities registered a case against unknown individuals, initiating a thorough investigation into the fraudulent scheme.
A Deceptive Scheme Unfolds
Fraudsters lured the victim through an unsolicited Telegram message from a profile named “Juliaanna.” The message promoted lucrative cryptocurrency trading opportunities and invited the businessman to join a WhatsApp group for further insights. Encouraged by the prospect of high returns, he joined the group, which appeared active with multiple members enthusiastically endorsing the investment tips provided by the group’s administrator.
Investigators determined that the scammers used multiple mobile numbers to fabricate an image of a thriving investment community. By flooding the group with messages praising the investment strategies and claiming substantial profits, they created an illusion of legitimacy, successfully deceiving the victim.
Financial Losses and Realization of Fraud
Between March and August 2024, the businessman invested a total of ₹1,00,02,600 through a mobile application provided by the fraudsters. Initially, the app displayed substantial profits, reinforcing his trust in the investment platform. However, trouble arose when he attempted to withdraw his earnings and principal amount. The system prevented all withdrawal attempts, alerting him to the possibility of fraud. Realizing he had been deceived, he approached the South Cyber Police and lodged a formal complaint.
Legal Action and Charges
Following the complaint, the Cyber Cell registered a case against unknown individuals under various sections of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Information Technology Act, 2000. The case includes the following charges:
- Section 319(2) BNS: Cheating by personation.
- Section 318(4) BNS: Cheating and dishonestly inducing delivery of property.
- Section 336(2) BNS: Forgery.
- Section 340(2) BNS: Forging documents or electronic records and using them as genuine.
- Section 61(2) BNS: Criminal conspiracy.
- Section 66C of the IT Act: Identity theft.
- Section 66D of the IT Act: Cheating by personation using computer resources.
Understanding the Legal Provisions
The Bharatiya Nyaya Sanhita, 2023, serves as an updated legal framework addressing various crimes in India. The sections invoked in this case provide a comprehensive legal basis for prosecuting cyber fraud:
- Cheating by Personation (Section 319(2) BNS): This charge applies when individuals deceive others by pretending to be someone else, causing wrongful gain or loss.
- Cheating and Dishonestly Inducing Delivery of Property (Section 318(4) BNS): This section covers fraudulent inducement leading to the transfer of money or assets.
- Forgery (Section 336(2) BNS): This charge addresses the creation of false documents or electronic records intended to deceive.
- Forging Documents or Electronic Records and Using Them as Genuine (Section 340(2) BNS): Fraudsters who forge documents and present them as authentic face prosecution under this section.
- Criminal Conspiracy (Section 61(2) BNS): This provision penalizes agreements between two or more individuals to commit unlawful acts.
Additionally, the Information Technology Act, 2000, strengthens the legal case:
- Identity Theft (Section 66C IT Act): Fraudulent use of another person’s electronic signature, password, or unique identification details falls under this category.
- Cheating by Personation Using Computer Resources (Section 66D IT Act): This provision targets individuals who use digital means to deceive and commit fraud.
The Growing Menace of Cryptocurrency Scams
Cryptocurrency investment frauds have surged worldwide, with scammers exploiting the public’s limited understanding of digital currencies. They promise high returns and leverage social media, messaging apps, and fake investment groups to lure victims. Many fraudsters operate sophisticated networks, creating the illusion of profitable investments to deceive unsuspecting investors.
A report by the Federal Trade Commission (FTC) revealed a sharp increase in cryptocurrency fraud cases since 2021. A significant portion of these scams stem from false investment opportunities promoted on social media platforms. Fraudsters use deceptive marketing techniques to establish trust and manipulate victims into investing large sums of money.
Preventive Measures and Awareness
Authorities and financial experts emphasize the importance of vigilance when dealing with cryptocurrency investments. To avoid falling prey to such scams, individuals should:
- Exercise Caution with Unsolicited Messages: Scammers often initiate contact through unexpected messages. Avoid responding to unknown profiles offering investment opportunities.
- Verify Authenticity: Conduct thorough research on investment platforms before committing funds. Verify company credentials and look for legitimate reviews.
- Avoid Sharing Personal Information: Never share sensitive financial or personal details with unknown individuals or platforms.
- Consult Financial Advisors: Before making significant investments, seek guidance from certified financial advisors who can assess the credibility of an opportunity.
- Report Suspicious Activities: If you suspect a scam, report it to the authorities immediately. Quick action can prevent further losses and assist law enforcement in tracking down fraudsters.
Conclusion
The case of the Mumbai-based computer dealer underscores the increasing sophistication of cyber fraudsters in the cryptocurrency space. As digital investments continue to gain popularity, heightened awareness and caution remain essential in preventing financial losses. Law enforcement agencies must enhance cybersecurity measures and crack down on fraudulent networks to curb the growing menace of cryptocurrency scams. By staying informed and exercising due diligence, individuals can protect themselves from falling victim to deceptive investment schemes.
ALSO READ: Bitcoin Price Today: Dips to $96K, Will it Make a Comeback?
