Bengaluru police uncover ₹1.52 crore online trading fraud, 254 cases linked: Report | Bengaluru

The Bengaluru police have uncovered a massive online share trading fraud involving ₹1.52 crore after investigating a case filed by a local man. The probe has revealed a web of 254 similar cybercrimes involving ₹97 crore in fraudulent transactions, all connected to six bank accounts, The Indian Express reported.

The scam, which began earlier this year, targeted victims promising high returns from online share trading tips. The victim, a 52-year-old man, was approached via WhatsApp by a woman who claimed to have a connection with a share trading expert. He was invited to join a group with over 110 members and encouraged to download a trading app. Between March and June 2024, the victim transferred ₹1.52 crore into a trading account set up by the scammers, the report noted.

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By June, the victim saw a balance of ₹28 crore in his account, but when he attempted to withdraw the funds, he was asked to pay ₹75 lakh as a “fee” to access the money. This raised suspicions, prompting him to file a complaint with the cybercrime police.

The investigation led to the discovery that the victim’s money had been funneled through two Axis Bank accounts in Bengaluru. Further scrutiny revealed that four more accounts, opened on the same day, were linked to similar fraudulent activities, the publication said. The accounts were opened without proper verification, and the bank officials responsible have been arrested. Among those detained were Kishore Sahu, the manager of the Axis Bank’s Nagarbhavi branch, and three other staff members.

The police also found that these accounts were used to transfer large sums, some amounting to several crores, but the bank had failed to alert law enforcement. “There was a possibility of freezing over ₹40 crore after being alerted of the accounts being used for fraudulent activities,” a cybercrime official said, as quoted in the report. Authorities are now searching for the primary scammers, who are suspected to be operating from abroad.