The Bengaluru Cyber Crime Police have cracked a large-scale online investment and trading scam leading to the arrest of eight individuals, including four officials from Axis Bank. This operation follows a complaint filed by 52-year-old businessman Raghunathachari from Yelahanka, who fell victim to the fraudulent scheme.
According to police, the scam began in March when Raghunathachari was contacted by a woman named Emila Singh, the admin of a WhatsApp group called "A01 India Free Stock Signal Updates." The group, comprising 110 members, purportedly provided stock trading tips. Singh and others in the group promised lucrative returns claiming that investors could earn up to ten times their initial investments.
Tempted by the opportunity, Raghunathachari initially invested Rs 50 lakh and saw what appeared to be significant returns. Over time, he continued to invest, totaling Rs 1.5 crore by June 2024. By then, the scammers sent him messages showing that his trading account had allegedly grown to a staggering Rs 28 crore. However, when Raghunathachari attempted to withdraw his profits, he was asked to pay an additional Rs 75 lakh as a "server management fee," raising his suspicions.
Realising something was amiss, Raghunathachari filed a complaint with the Bengaluru Central Cyber Crime Police on July 1. Upon investigating, police discovered that two suspicious bank accounts had been opened at Axis Bank's Nagarabhavi branch, where large money transfers took place. The investigation further revealed that these accounts had been opened without proper documentation. As the probe deepened, four more Axis Bank accounts displaying similar irregularities were uncovered.
During their interrogation of several bank employees, including the branch manager and sales representatives, police uncovered that these officials had been involved in opening accounts without necessary documents, facilitating the transfer of funds from the fraudulent stock trading scheme. Working with a larger group of 10 individuals, the accused promoted the fraudulent scheme via WhatsApp, promising huge profits to unsuspecting investors. Once the money was deposited, it was funneled into various bank accounts and ultimately withdrawn by the perpetrators.
To date, approximately Rs 97 crore has been transacted through these undocumented accounts. The police have arrested eight individuals, including the branch manager and sales officers, in connection with the fraud. Bengaluru City Commissioner B Dayananda also revealed that three key figures behind the scam have fled the country. Efforts are currently underway to track them down and bring them to justice.