Hulimavu police in Bengaluru have busted a ₹1,000-crore cyber fraud involving fake stock trading and online betting apps. Twelve people have been arrested, ₹240 crore frozen in 4,500 bank accounts, and the Dubai-based mastermind is absconding.
In one of the biggest cybercrime crackdowns in the city, the Hulimavu police have unearthed a massive cyber fraud racket worth more than ₹1,000 crore, operated under the guise of stock market trading and online betting platforms. The fraud was spread across the country through fake mobile applications and websites, with money laundered using thousands of bank accounts.
Police have arrested 12 accused, including a mother and son who allegedly played a key role in opening fake bank accounts to launder illicit proceeds. So far, the police have frozen around ₹240 crore across 4,500 bank accounts nationwide, preventing the funds from reaching the main fraudsters.
Twelve Arrested, Assets Worth ₹1 Crore Seized
Those arrested include Mohammed Huzaifa of Anjanapura in JP Nagar and his mother Shabana, Ankit Kumar Singh from Uttar Pradesh, Ajit Kumar Yadav from Bihar, M. Abhishek Singh Rathod, Vishwaraj Singh Shekhawat, Kushal Singh Chauhan, Satyam Kumar Pandey, Akash Jaiswal, Pradeep Singh, Pitambar Singh, and Ajay Kumar from Rajasthan.
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Police have seized assets worth nearly ₹1 crore from the accused, including 58 mobile phones, seven laptops, nine watches, 531 grams of gold jewellery, and ₹4.89 lakh in cash.
Mastermind Operating From Dubai
Police said the mastermind of the fraud network is Prem Taneja, a Mumbai native currently hiding in Dubai. A lookout notice has been issued against him through Interpol.
Bengaluru City Police Commissioner Seemanth Kumar Singh said the nationwide fraud network came to light after a resident of Akshaynagar lodged a complaint at the Hulimavu police station, stating that he had lost ₹3 crore in a fraudulent stock market investment scheme.
Scam Run Through ‘Swamiji’ App and ‘Neo System’
According to the police, Prem controlled the entire operation from Dubai. Around three years ago, he developed two separate platforms: ‘Swamiji.com’, an online gaming application, and ‘Neo System’, a stock trading app.
These platforms were aggressively promoted on social media platforms such as Facebook, Instagram and Telegram, luring victims with promises of doubling their money through online betting and stock trading.
Initially, victims were given unusually high returns to gain their trust. For instance, a person investing ₹1,000 would be shown a profit of ₹5,000. Encouraged by these returns, victims went on to invest larger sums, sometimes running into lakhs, after which they were cheated of both profits and principal amounts, police said.
Delhi Office and Salaried Employees
A head office for the fraud operation was set up in Delhi. Several employees working there were paid monthly salaries to manage customer interactions, payments, and operations.
Those arrested from the Delhi office include Ankit from Uttar Pradesh, Ajit from Bihar, and Abhishek, Pitambar, Pradeep, Vishwaraj, and Kushal from Rajasthan, along with Satyam Pandey from Jharkhand, Akash Jaiswal, and Ajay Kumar. Police said Huzaifa and his mother Shabana were responsible for supplying fake bank accounts to route the fraud money.
Complaint by Akshaynagar Resident Led to Breakthrough
The scam came to light after a resident of Akshaynagar received a Telegram message promoting the Neo System app. After investing ₹3.03 crore and being cheated, the victim approached the Hulimavu police.
Following the complaint, the police froze the bank accounts used for the transactions. The breakthrough came when one of the account holders approached the police to enquire why his bank account had been frozen, leading investigators to unravel the nationwide fraud network.
Huzaifa’s Entry Into the Fraud Network
Huzaifa, an unemployed B Com dropout, was addicted to online gaming. A few months ago, he began gambling on Prem’s Swamiji app and initially won large sums, which he managed to withdraw successfully.
Police said Huzaifa later hacked the Swamiji app twice and siphoned off money from the fraudsters themselves. Impressed by his technical skills, Prem and his associates befriended him and later brought him into the operation.
On Prem’s instructions, Huzaifa travelled to Delhi and met the gang members before being summoned to Dubai. There, he was trained further in fraudulent activities. Police said Huzaifa gained Prem’s trust by narrating a sob story about being fatherless and struggling to support his mother, after which Prem allegedly sent him back with a large sum of money.
Fake Accounts Opened for ₹25,000 Each
Over the last two years, Huzaifa allegedly paid daily wage labourers and people from economically weaker sections between ₹25,000 and ₹30,000 to open bank accounts in their names.
He supplied around 7,500 such bank accounts to Prem’s network. His mother Shabana also assisted him in procuring these accounts, police said.
Lavish Lifestyle and Use of Satellite Phones
Using the proceeds of crime, Huzaifa led a lavish lifestyle. He reportedly travelled to Dubai three times a month, purchased a flat near Anjanapura, and gifted gold jewellery to his girlfriend. Sources said he earned between ₹30 lakh and ₹35 lakh per month.
To evade law enforcement, Prem and his associates used satellite phones, which do not reveal the origin or destination of calls, police said.
₹240 Crore Frozen, Victims to Receive Refunds
Police have frozen ₹240 crore across thousands of bank accounts. Of this, ₹90 lakh will be returned to victims after obtaining court permission, while the remaining amount will be refunded in the next phase.
A reward of ₹50,000 has been announced for the investigation team that successfully cracked the cyber fraud network.
“The investigation is ongoing, and further arrests are likely,” said Seemanth Kumar Singh, Police Commissioner, Bengaluru City.
