Alappuzha: An elderly man lost nearly Rs 2.67 crore after scamsters earned his trust and made him invest in a non-existent capital stock company with the promise of doubling his investment in a short period.
Acting fast, the Alappuzha District Crime Branch dismantled a major online racket and arrested three youths from Malappuram identified as Muhammad Poontala, Abdul Majeed, and Abdul Karim.
According to cops, the accused, posing as officials from the Sequola Capital Stock Trading Department, targeted a senior citizen in Mannar near Mavelikkara, who had earlier worked in the Gulf.
Operating through WhatsApp, the alleged perpetrators convinced the man of a substantial profit. He made an initial deposit of Rs 50,000 and joined the “scheme”.
However, the alleged fraudsters, under the guise of a virtual trading platform linked to the organization, manipulated the virtual account, showing “increasing profits” and urged him to invest “more money and reap more profit”.
Through a dedicated WhatsApp group named ‘VIP116F Customer Service Dedicated Window’, the accused communicated with the man, presenting fabricated dividends to entice further investment.
Over a series of 26 transactions between December 1, 2023 and January 10, 2024, the man deposited a total of Rs 1,77,10,000. As the virtual account balance reached an astronomical Rs 9 crore, he sought to transfer the funds. The fraudsters, however, concocted a legal obstacle, demanding Rs 69,90,000 as income tax for a promised 20% exemption. Under duress, the victim complied with a partial payment.
The alleged scamsters persisted, demanding an additional Rs 30 lakhs as a service charge for withdrawing cash from various companies. When the man deposited Rs 20,000 in two transactions, the alleged fraudsters vanished, deleting all trading sites and WhatsApp numbers.
Realising that he was duped, the elderly citizen filed a complaint with the cyber police. The Alappuzha District Crime Branch then initiated an investigation on February 15, 2024.
The inquiry revealed a complex network involving hawala transactions and money transfers orchestrated by groups based in Koduvally in Kozhikode.
“The funds siphoned off in this case were found to have been moved through various accounts, including a Federal Bank account in Koduvally, another Federal Bank account in Areekode, Malappuram and through ICICI accounts linked to Areekode,” said an official.
Further investigations led to the arrest of Haris and Shuhaib, computer science graduates involved in money transfers. The masterminds behind the scam were identified as Muhammad Poontala, Abdul Majeed, and Abdul Karim.
Karim, also known as Cherion, has been taken into custody and presented before the court. Legal measures have been taken to prevent Shuhaib's entry into the Gulf as the court proceedings continue.
According to the police, fraudsters typically engage in an immediate transfer of funds received via internet banking to multiple accounts facilitated by hawala agents, who charge substantial commissions. The investigation into the case has also revealed that groups operating in Kozhikode’s Koduvally region are widely involved in such activities.
With the authorities freezing numerous such bank accounts in the Koduvally area, hawala operators are reaching out to several young individuals in Areekode area, confirming that the funds were legitimate and that withdrawing up to 20 lakh rupees per year from an account posed no issues, the investigating officers said.
