Delhi Police claim over 5 lakh Indians duped by Chinese nationals through MLM apps

The Delhi Police has claimed that Chinese nationals have been duping Indians through MLM companies. According to the DCP Cyber Cell, Aneyesh Roy, more than 5 lakh Indians have been duped to the tune of Rs 150 crore so far by the accused.  "We have arrested 11 persons including two Charted Accountants who were working for Chinese nationals. They had been using a different mobile app to cheat people. Users of these apps were asked to deposit money for a handsome return and later not only they were duped but their mobile data were also being stolen. Around 150 crore were withdrawn through cell companies," said Mr Roy. 

Malicious app

In the second week of May, the Cyber Cell came to know that few apps Powerbank, Sun factory, Ezplan, are being discussed on different social media platforms. These apps were analysed through forensic lab and it was learnt that these apps are malicious which are stealing the data of the users and cheating them with for their money. The data was being sold at an international market. 

The Delhi Police sent a decoy customer and also paid to one of the apps. Later police found that through shell companies the collected money was being laundered. The accused used to say that they are Bangalore based companies. Users of this app were being given a ten per cent amount of their total investment. Also, if they would bring new users they would get an extra amount. They used to pay for every reference. 

"However, the money wasn't given to the users in their account. It only would show on their app. And this the victims were cheated," said Mr Roy. 

Top five apps 

The cyber cell team was stunned when they got to know that few apps were among the top five apps on Google Play Store and other platforms. PowerBank was one such app that was in the top five best apps on the google play store. 

Following the money trail

Police analysed the money trail and were shocked to learn that 25 shell companies were created by the accused. In the meantime, the police got a complaint against EasyPlan app and an FIR was lodged. Following the money trail a CA Amit Kedia was held in Gurugram. He told the police that he constituted around 110 companies for their Chinese client. Their GST registration act was also done by this CA. 

"Total amount could go up to 250 crores or more. We have learnt that through cryptocurrency, the cheated money is being sent abroad. Few numbers which were issued in India are active in China," said Mr Roy. 

The arrests

The technical analysis also revealed that several mobile numbers connected with the bank accounts and involved in the scam were found to be operational in China. The mobile numbers active in India were studied in-depth and it was concluded that one of the main persons responsible for running the scam was in Uluberia, West Bengal. He was identified as one Sheikh Robin. Following this, a raid was conducted and the accused was held. 

"30 mobile phones were recovered from the accused Robin, whose disclosure revealed a startlingly well-planned conspiracy of cheating and fraud being organized by Chinese nationals through a labyrinth of shell companies, bank accounts and dummy mobile numbers," said me Roy adding that total 11 persons were held by them so far. Further probe in the matter is on.