A 42-year-old land dealer from Bhosari, Pune, allegedly lost around ₹1.33 crore after cyber fraudsters lured him into investing in cryptocurrency with promises of unusually high returns.
Trust Built Through an Acquaintance
The accused first gained his trust and then persuaded him to transfer money to multiple bank accounts, showing him fabricated cryptocurrency investment details through a mobile application to make the scheme appear genuine. When he later sought the return of his money, the accused allegedly cited banking problems and technical issues related to cryptocurrency. After the fraud came to light, one of the suspects allegedly threatened him with links to the criminal underworld.
Bhosari police have registered a case against two suspects from Balewadi, under sections of the Bharatiya Nyaya Sanhita relating to cheating and criminal intimidation. According to police, the complainant already knew one of the suspects, and this existing relationship was allegedly used to gain his confidence.
How the Scheme Began
The alleged fraud began in May 2024, when the complainant's acquaintance introduced him to another person, claiming the man was involved in cryptocurrency trading and could generate high returns on investments. The two suspects allegedly presented themselves as business partners, claiming they'd helped other investors earn substantial profits.
Convinced by their claims, the land dealer initially transferred ₹19.70 lakh to the accused. The suspects later returned ₹10.40 lakh to him, strengthening his confidence in the arrangement, and allegedly told him the remaining ₹9.29 lakh had been invested in cryptocurrency and was generating profits.
The Scheme Expands to Over a Crore
The alleged fraud subsequently expanded. The complainant transferred a total of ₹1.23 crore into different bank accounts provided by the suspects. To convince him the money was being genuinely invested, the accused allegedly showed him cryptocurrency investment details through a mobile application, which displayed rising investment values and substantial profits.
A Fake App Showing ₹100 Crore in Profits
The suspects allegedly told the complainant that his investment had generated profits of more than ₹100 crore, unusually high figures that apparently reinforced his belief that his money had been successfully invested and was continuing to grow.
However, when he began demanding the return of his principal amount and the alleged profits, the suspects allegedly changed their approach, citing various reasons including banking problems, payment delays, and technical difficulties related to cryptocurrency, all designed to avoid actually returning the money.
After waiting for an extended period, the complainant discussed the matter with a software engineer friend. Following an examination of the application and the investment details displayed on it, he realised the cryptocurrency and profits shown on the platform were allegedly entirely fictitious.
Threatened After Confronting the Suspect
When the land dealer confronted one of the suspects about the alleged fraud, the accused reportedly threatened him, claiming connections with the criminal underworld and warning that the complainant could be killed if he pursued the matter further.
The complainant subsequently approached the police and reported the entire incident. Investigators are now examining the auditing services in India-style bank account records into which the money was transferred, the transaction trail, mobile numbers used by the suspects, and the digital platforms associated with the alleged investment scheme.
How These Fraud Schemes Typically Work
Cybercrime expert and former IPS officer Prof. Triveni Singh said investment fraudsters often begin by gaining a victim's confidence through relatively small transactions. Returning part of the initial investment can make the victim believe that the platform and the people operating it are genuine, and once trust is established, fraudsters encourage larger transfers.
Singh said displaying rapidly increasing profits on a fake investment application is another psychological tactic used to persuade victims to invest more. He advised investors to independently verify the company, application, bank accounts, and investment platform before transferring money, and to never make additional payments merely because an application displays large profits on the screen.
A Pattern That Keeps Demanding More
In schemes like this, victims are often shown rapidly increasing balances in their investment accounts. However, when they attempt to withdraw the money, fraudsters may demand additional payments in the name of taxes, processing charges, banking problems, or technical procedures.
Experts warn that promises of unusually high and consistent returns should be treated as a major red flag, particularly when an investor is repeatedly asked to make additional payments before being allowed to withdraw funds.
Police are investigating whether the two suspects allegedly targeted other investors using a similar method, and are examining the flow of the money transferred by the complainant to determine whether additional individuals or bank accounts were involved.
Cybercrime cases require immediate reporting, because delays can allow stolen money to be transferred through multiple accounts. Victims who notice suspicious transactions should immediately contact their bank and the 1930 cybercrime helpline. Early reporting can give authorities and banks a better opportunity to place holds on suspicious transactions and trace or recover the funds.
FAQs
Q1. How did the fraudsters convince the land dealer their scheme was legitimate?
They returned an initial ₹10.40 lakh from his early investment and showed him a fake app displaying rising profits, eventually claiming his investment had generated over ₹100 crore in returns.
Q2. How much money did the victim ultimately lose?
The land dealer lost a total of ₹1.33 crore, transferred in stages, including an initial ₹19.70 lakh and a subsequent ₹1.23 crore into different bank accounts.
Q3. What happened when the victim confronted the accused?
One of the suspects allegedly threatened him, claiming connections with the criminal underworld and warning he could be killed if he pursued the matter.