Indian Government Takes Action Against 100 Investment Scam Websites

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New Delhi: In a bid to protect vulnerable citizens from falling victim to investment scams, the Indian Government has launched a crackdown on more than 100 fraudulent websites. These sites, reminiscent of predatory loan apps, have been preying on unsuspecting individuals. The Ministry of Electronics and Information Technology (MeitY), exercising its authority under the Information Technology Act of 2000, took the decisive step to block these websites on December 6.

Collaborative Efforts

The Ministry of Home Affairs (MHA), working in tandem with the National Cybercrime Threat Analytics Unit (NCTAU) under I4C, identified and recommended the blocking of over 100 websites involved in organized investment and task-based part-time job frauds. ()

The MeitY press release highlighted the collaborative efforts to curb these fraudulent activities that exploit innocent citizens. ()

Modus Operandi and Financial Complexity

These scam websites were found to be intricately linked to multiple bank accounts, employing a sophisticated financial trail to obfuscate investigative efforts.

The funds were skillfully transferred between accounts, eventually being converted into cryptocurrency. This intricate financial maneuvering aimed to create confusion and hinder the tracking efforts of law enforcement agencies.

Telegram App Used For Luring Victims

According to a News18 report, a significant fraud case where a Chinese-run scam, operating through the Telegram app, amassed approximately Rs 712 crore. Victims were enticed with promises of part-time jobs and lured into a 'Rate and Review' job.

Initially, victims were assigned simple tasks, involving small investments and rating assignments for profits. As trust grew, they were coerced into more substantial investments with false assurances of substantial returns, ultimately falling prey to the scam.

Escalation Of Scams On Messaging Platforms

The scams, exploiting instant messaging platforms like WhatsApp and Telegram, have seen an alarming rise. The Hyderabad Police uncovered one of the largest frauds of this nature, exposing the use of these platforms to carry out deceptive activities. Notably, crypto wallet transactions in this fraud were traced to a Hezbollah wallet, linking the scam to the Lebanese militia group.

Wide-Spread Impact

Instances of fraud are not isolated, with reports emerging from Kollam in Thiruvananthapuram, Uttarakhand, and Delhi. A victim in Kollam lost around Rs 1.2 crore to Chinese scammers.

Cybersecurity company CloudSEK reveals that scammers are adept at evading law enforcement detection, leveraging Chinese payment gateways and Indian money mules.

Government's Commitment To Safeguard Citizens

The decisive action taken by the Indian government underscores its commitment to safeguarding citizens against the escalating threat of online scams. As fraudulent activities evolve, collaborative efforts between government bodies become crucial in ensuring the security and financial well-being of the public.