Digital arrests: ED files charge sheet, I4C issues fresh advisory
Narendra Modi urging people to guard against the menace of 'digital' arrests, probe agencies said they are taking action against this category of cyber crime with the ED filing a charge sheet in one such case and the I4C issuing a fresh advisory. The Enforcement Directorate (ED) issued a statement on Saturday, saying it filed a prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru last month against eight accused who allegedly «lured» common people through «fake» IPO allotments and stock market investments through fraudulent apps.
«Probe found that a huge network of cyber scams in India, involving fake stock market investments and digital arrest schemes executed primarily through social media platforms like Facebook, Instagram, WhatsApp, and Telegram.
»Known as 'pig-butchering' scams, stock market investment scams entice victims with promises of high returns, using fake websites and misleading WhatsApp groups that appear connected to reputable financial firms," the Enforcement Directorate said.
Scammers, it said, establish credibility through fake ads and fabricated success stories, ultimately leading victims to invest significant amounts.
The ED said some victims of this scam were «manipulated» under the guise of a fake arrest (digital arrest) by the Customs and the CBI, ultimately making them transfer huge funds to various shell or dummy companies under fake «fund regularisation process.»
Finance
A2Z Of Finance: Finance Beginner Course
By — elearnmarkets, Financial
