Could a Fake Stock Trading App Scam Really Dupe a Retired TN Chief Conservator of Forests Out of Rs 6.8 Crore?
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Synopsis
A retired IFS officer lost his life savings to a fake stock trading app, highlighting the growing threat of online investment scams. With three arrests made, authorities are on high alert for similar fraudulent activities across the region.
Key Takeaways
- Be cautious: Always verify investment apps before transferring money.
- Stay informed: Educate yourself about common online scams.
- Report suspicious activities: Contact authorities if you suspect fraud.
- Use secure platforms: Invest only through reputable and verified channels.
- Protect your data: Never share sensitive information with unverified sources.
Chennai, May 25 (NationPress) The Cybercrime Wing of the Greater Chennai Police has apprehended three individuals from Kerala linked to a sophisticated online investment scam that defrauded a retired Indian Forest Service (IFS) officer of Rs 6.8 crore.
The victim, Krishnan Kumar Kaushal (60), originally from Himachal Pradesh and a 1990-batch IFS officer, concluded his service as the Tamil Nadu Principal Chief Conservator of Forests in July 2024.
In a report lodged two months ago, he revealed that he lost his entire life savings, retirement benefits, and the funds from selling his home after being tricked by fraudulent investment applications.
The apprehended individuals are identified as Sreejith R. Nair (47) from Ernakulam, Abdulsalu (47) from Kozhikode, and Mohammed Farwaiz (44) from Malappuram. They were brought to Chennai on a transit warrant and are now in judicial custody.
According to police reports, Krishnan Kumar received WhatsApp notifications in December 2024, urging him to download two fraudulent investment applications—SMC Apex and Shanda Capital. These apps were promoted by self-proclaimed customer service representatives who promised substantial returns.
Between January and late January 2025, he transferred approximately Rs 6.58 crore to various bank accounts connected to the scammers, under the impression he was investing in authentic stock market operations. However, he grew suspicious when he noticed inconsistencies.
“The value of the shares represented in the app appeared to increase daily, but upon cross-verification with official stock exchange data (NSE and BSE), the figures did not align,” he stated in his complaint.
Upon realizing he had been scammed, Kaushal reported the incident to the national cybercrime helpline (1930) and filed a complaint with the Chennai Police’s Cybercrime Wing.
A specialized team led by Inspector Peer Basha traced the fraudulent bank accounts to Kerala.
The investigation uncovered that the arrested trio had been managing bank accounts on behalf of cybercriminals. The embezzled funds were funneled abroad through illicit hawala networks and subsequently converted into USDT cryptocurrency via the Binance trading application.
Authorities indicated that five other individuals from Delhi and surrounding areas had been arrested earlier in connection with this case. However, the three suspects from Kerala played a pivotal role in laundering the money through cryptocurrency transactions.
A senior police official commented, “The suspects are believed to be implicated in similar scams reported in other regions of Tamil Nadu and various states.”
Point of View
It is imperative to emphasize the alarming rise in online investment scams, which exploit the vulnerabilities of unsuspecting individuals. This incident not only highlights the need for enhanced cybersecurity measures but also calls for greater public awareness to protect against such fraudulent schemes. At NationPress, we are committed to bringing these critical issues to light.
NationPress
09/06/2025
Frequently Asked Questions
What happened in the stock trading app scam?
A retired IFS officer was duped of Rs 6.8 crore by fraudulent investment applications, leading to three arrests in Kerala.
How did the scammers operate?
The scammers lured the victim through WhatsApp messages, promoting fake investment apps and promising high returns.
What measures are being taken against the perpetrators?
The Cybercrime Wing is actively investigating the case and has arrested three suspects, with further inquiries ongoing.
What should individuals do to protect themselves from such scams?
Always verify the legitimacy of investment platforms and avoid sharing personal financial information with unverified sources.
Are there more scams like this reported?
Yes, authorities suspect that these individuals are involved in other similar scams across various regions.
