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Showing posts with label Financial Scam. Show all posts
Scam
AI Deepfakes Bengaluru Cyber Crime deep fake videos Financial Scam links Scam

Deepfake of Finance Minister Lures Bengaluru Homemaker into ₹43.4 Lakh Trading Scam




A deceptive social media video that appeared to feature Union Finance Minister Nirmala Sitharaman has cost a Bengaluru woman her life’s savings. The 57-year-old homemaker from East Bengaluru lost ₹43.4 lakh after being persuaded by an artificial intelligence-generated deepfake that falsely claimed the minister was recommending an online trading platform promising high profits.

Investigators say the video, which circulated on Instagram in August, directed viewers to an external link where users were encouraged to sign up for investment opportunities. Believing the message to be authentic, the woman followed the link and entered her personal information, which was later used to contact her directly.

The next day, a man identifying himself as Aarav Gupta reached out to her through WhatsApp, claiming to represent the company shown in the video. He invited her to a large WhatsApp group titled “Aastha Trade 238”, which appeared to host over a hundred participants discussing stock trades. Another contact, who introduced herself as Meena Joshi, soon joined the conversation, offering to help the victim learn how to use the firm’s trading tools.

Acting on their guidance, the homemaker downloaded an application called ACSTRADE and created an account. Meena walked her through the steps of linking her bank details, assuring her that the platform was reliable. The first transfer of ₹5,000 was made soon after, and to her surprise, the app began displaying what looked like real profits.

Encouraged by what appeared to be rapid returns, she made larger investments. The application showed her initial ₹1 lakh growing into ₹2 lakh, and a later ₹5 lakh transfer seemingly yielding ₹8 lakh. The visual proof of profit strengthened her trust, and she kept transferring higher amounts.

In September, problems surfaced. While exploring an “IPO feature” on the app, she tried to exit but was unable to do so due to recurring technical errors. When she sought help, Meena advised her to continue investing to prevent losses. The woman followed this advice, transferring a total of ₹23 lakh in hopes of recovering her funds.

Once her savings were exhausted, the scammers proposed a loan option within the same app, claiming it would help her maintain her trading record. When she attempted to withdraw money, the platform denied the request, displaying a message stating her loan account was still active. Believing the issue could be resolved with more funds, she pawned her gold jewellery at a bank and a finance company, wiring additional money to the fraudsters.

By late October, her total transfers had reached ₹43.4 lakh across 13 separate transactions between September 24 and October 27. The deception came to light only when her bank froze her account on November 1, alerting her that unusual activity had been detected.

The East Cybercrime Police Station has since registered a case under the Information Technology Act and Section 318 of the Bharatiya Nyaya Sanhita, which addresses cheating. Officers confirmed that the fraudulent video used sophisticated AI tools to mimic the minister’s voice and gestures convincingly, making it difficult for untrained viewers to identify as fake.

Police officials have urged the public to remain alert to deepfake-driven scams that exploit public trust in well-known personalities. They advise verifying any financial offer through official government portals or trusted news sources, and to avoid clicking unfamiliar links on social media.

Experts warn that such crimes surface a new wave of cyber fraud, where manipulated media is used to build false credibility. Citizens are advised never to disclose personal or banking information through unverified links, and to immediately report suspicious investment schemes to their banks or local cybercrime authorities.



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tax evasion
Cyber Fraud Financial Scam GST Scam India tax evasion

Multi-Crore Fake GST Registration Racket Busted Across 23 States

 

A sophisticated fake GST registration racket operating across 23 Indian states has resulted in a multi-crore tax evasion scam, exploiting weaknesses in the Goods and Services Tax (GST) system to generate fraudulent input tax credit (ITC) and evade government revenue on a large scale.

The modus operandi largely involves creating fake GST registrations using forged documentation, including bogus Aadhaar and PAN cards, to establish shell entities with no actual business operations. These entities then issue fabricated invoices and generate e-way bills for non-existent transactions, facilitating the fraudulent input tax credit claims across genuine and shell companies.

Regulatory authorities, including the Directorate General of GST Intelligence (DGGI), have uncovered several instances where syndicates employed layered transaction trails and fictitious suppliers to divert and siphon funds through systematic bogus invoicing. 

Major raids and investigations in cities such as Chennai and Belagavi have led to the arrest of key accused individuals, recovery of fake documents, freezing of bank accounts, and seizure of property documents linked to the scam. For example, one case in Belagavi revealed fake invoices totaling approximately ₹145 crore, leading to the arrest of an individual under the CGST Act.

This GST fraud network targets not just government revenue, but also paves the way for large multinational firms to benefit from inflated ITC, according to Enforcement Directorate findings. This cross-border and multi-entity approach compounds the scale and complexity of investigations, with dummy entities being used to link bogus invoices and move money through multiple shell companies across several states.

In response, the government has intensified compliance drives and implemented reforms, such as biometric Aadhaar authentication for GST registration in select states and more stringent registration checks. Authorities warn that unsuspecting individuals could have their PAN and Aadhaar details misused for fake GST registrations, making vigilance essential for both businesses and citizens. 

The ongoing investigations continue to unravel the extent of the network, highlighting the need for robust digital authentication, proactive monitoring, and inter-agency coordination to tackle these sophisticated financial crimes.
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Online Trading Scam
Cyber Security CyberCriminal Fake messages Financial crime Financial Scam Online Trading Scam

Bengaluru Software Engineer Loses Rs 44 Lakh in Fake Stock Trading Scam

Cybercriminals are using increasingly sophisticated tricks to target unsuspecting citizens, and a recent case in Bengaluru highlights just how dangerous these scams can be. A 46-year-old software engineer from Horamavu lost ₹44 lakh after being lured into a fake stock trading scheme that began with a deceptive medical emergency alert. 

The victim, identified as Jayaraj (name changed), received a Telegram message on July 11 claiming that someone was critically ill and needed immediate help at a hospital. Believing the message had been sent to the wrong number, Jayaraj responded politely, advising the sender to check the contact. The sender, who introduced herself as Reeva Chauhan, thanked him and gradually began engaging in casual chats. 

Their conversations soon moved from Telegram to WhatsApp, where voice calls and regular interactions helped Reeva gain Jayaraj’s trust. Over time, she presented herself as an employee of a stock trading company and convinced him that she could help him earn quick profits through investments. On July 31, she introduced him to a trading platform called OSL Trade and assisted him in creating an account. Jayaraj was persuaded to invest ₹50,000 as an initial amount. 

Within a short span, he saw a credit of ₹4,950 to his bank account, which reassured him that the platform was legitimate. Encouraged by the apparent returns, he began investing larger sums over the next month. Between August 1 and September 17, Jayaraj transferred ₹44.2 lakh in three separate transactions—₹20 lakh, ₹12 lakh, and ₹12.2 lakh—to bank accounts provided by the fraudsters. His trading dashboard displayed mounting profits, with a balance showing nearly ₹24 lakh. 

However, when he attempted to withdraw the money, the system denied the request, demanding additional investments to unlock the funds. When Jayaraj explained that he had no more money to invest, communication from Reeva and the fraudsters abruptly stopped. Realizing he had been duped, he immediately contacted the national cybercrime helpline and filed a formal complaint with the East CEN Crime police on September 22. 

Authorities have registered a case under the IT Act and Section 318 of the Bharatiya Nyaya Sanhita (cheating). Police officials stated that efforts are underway to identify the perpetrators, trace the fraudulent accounts, and freeze any remaining funds before they can be siphoned off. 

This incident underscores the growing risk of online investment fraud, where criminals exploit trust and emotional manipulation to steal vast sums from victims. Police have urged citizens to remain vigilant, verify investment platforms carefully, and avoid engaging with unsolicited messages promising financial gains.
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User Security
Cyber Fraud Financial Scam India Online Trading Scam Trading App User Security

India's Biggest Cyber Fraud: Businessman Duped of ₹25 Crore Through Fake Trading App

 

A Kochi-based pharmaceutical company owner has suffered a loss of ₹25 crore in what is being described as the largest single-person cyber fraud case in India. 

The incident involved a sophisticated online trading scam, executed through a fake trading application that lured the victim with promises of lucrative returns. Despite being an experienced trader, the businessman fell prey to deception after engaging with the fraudulent app for nearly two years.

The scam unfolded over four months, during which the victim was lured by substantial profits displayed on his initial investments. These early gains convinced him of the app’s legitimacy, prompting more substantial investments.

Investigators from the Cyber Cell revealed that the app consistently showed double profits, creating an illusion of credibility and financial success. This psychological manipulation is a common tactic used by cyber fraudsters to build trust and encourage deeper engagement from unsuspecting victims. 

Trouble began when the businessman attempted to withdraw his funds, only to be met with repeated delays and a variety of excuses from the operators of the fake platform. As withdrawal requests were consistently stonewalled, suspicion grew. It was only after persistent failed attempts to access his money that the reality of the fraud became clear to the victim. 

Upon reporting the crime, swift action was taken by law enforcement. The Indian Cyber Crime Coordination Centre was immediately alerted and subsequently forwarded the information to the Thiruvananthapuram Cyber Operations Headquarters. A formal case was registered, and efforts have been initiated to freeze the remaining funds before they could be routed to additional accounts.

Investigation revealed that the fraudulent app was under the control of a foreign national, indicating possible international links and making the operation broader and more complex. The case has prompted a larger crackdown on similar cyber threats, with the Cyber Cell widening its probe to trace the perpetrators and prevent further occurrences. 

This incident highlights the growing sophistication of online financial scams in India, emphasizing the need for increased vigilance, especially even among experienced investors. Awareness and prompt reporting remain essential defenses against such evolving cyber threats.
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User Security
Cyber Fraud Deepfakes Financial Scam User Privacy User Security

Deepfakes Explained: How They Operate and How to Safeguard Yourself

 

In May of this year, an anonymous person called and texted elected lawmakers and business executives pretending to be a senior White House official. U.S. senators were among the recipients who believed they were speaking with White House chief of staff Susie Wiles. In reality, though, it was a phoney. 

The scammer employed AI-generated deepfake software to replicate Wiles' voice. This easily accessible, low-cost software modifies a public speech clip to deceive the target. 

Why are deepfakes so convincing? 

Deepfakes are alarming because of how authentic they appear. AI models can analyse public photographs or recordings of a person (for example, from social media or YouTube) and then create a fake that mimics their face or tone very accurately. As a result, many people overestimate their ability to detect fakes. In an iProov poll, 43% of respondents stated they couldn't tell the difference between a real video and a deepfake, and nearly one-third had no idea what a deepfake was, highlighting a vast pool of potential victims.

Deepfakes rely on trust: the victim recognises a familiar face or voice, and alarms do not sound. These scams also rely on haste and secrecy (for example, 'I need this wire transfer now—do not tell anyone'). When we combine emotional manipulation with visual/auditory reality, it is no surprise that even professionals have been duped. The employee in the $25 million case saw something odd—the call stopped abruptly, and he never communicated directly with colleagues—but only realised it was a scam after the money was stolen. 

Stay vigilant 

Given the difficulty in visually recognising a sophisticated deepfake, the focus switches to verification. If you receive an unexpected request by video call, phone, or voicemail, especially if it involves money, personal data, or anything high-stakes, take a step back. Verify the individual's identity using a separate channel.

For example, if you receive a call that appears to be from a family member in distress, hang up and call them back at their known number. If your supervisor requests that you buy gift cards or transfer payments, attempt to confirm in person or through an official company channel. It is neither impolite or paranoid; rather, it is an essential precaution today. 

Create secret safewords or verification questions with loved ones for emergencies (something a deepfake impostor would not know). Be wary of what you post publicly. If possible, limit the amount of high-quality videos or voice recordings you provide, as these are used to design deepfakes.
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stock fraud
brokerage hack Cyber Security Financial Scam investment security Japan finance Multi-factor authentication online trading stock fraud

Surge in Brokerage Account Hacks in Japan Fuels Global Penny Stock Fraud

 

Japan is witnessing an alarming rise in online brokerage account hacks, with cybercriminals manipulating low-volume penny stocks across international markets. Since February, these fraudulent activities have totaled over ¥100 billion (approximately $710 million or ₹6,070 crore)—a trend that continues to escalate.

Hackers gain unauthorized access to investor accounts and purchase illiquid stocks—both in Japan and overseas. This artificially inflates the stock prices, allowing fraudsters to sell their own pre-acquired holdings at a profit. In response, some Japanese brokerage firms have halted buy orders for select stocks listed in China, the U.S., and Japan.

Eight major brokerages—including Rakuten Securities Inc. and SBI Securities Co.—have confirmed unauthorized trades on their platforms. The attacks have exposed systemic vulnerabilities in Japan’s cybersecurity framework and could derail the government’s push for wider retail investment, particularly for retirement savings. Victims say they are left confused and unsupported. Securities firms have largely avoided covering user losses, leading to growing distrust among investors.

Mai Mori, a 41-year-old part-time worker, said her Rakuten Securities retirement account was compromised. She lost ¥639,777, or about 12% of her portfolio, after hackers used her account to buy Chinese stocks.

“The police told me that in most fraud cases, the victims often end up having to just quietly accept the loss,” said Mori. “Basically, there’s not much that can be done.”

Rakuten told her to report the case to police, but authorities in Aichi prefecture refused, claiming that the victim was Rakuten, not Mori. The brokerage later stated it bore no responsibility.

A Rakuten spokesperson told Bloomberg, “We will continue to examine each case individually and respond in good faith.” Other brokers including SBI, SMBC Nikko, Monex Group, Matsui Securities, Nomura Securities, Daiwa Securities, and Mitsubishi UFJ Financial Group made similar statements emphasizing individual case-by-case evaluations.

Another Tokyo-based investor in his 50s, who requested anonymity, lost ¥50 million when his account was hijacked to purchase Japanese and Chinese stocks on margin. Despite receiving a suspicious notification, his brokerage was unable to freeze the account in time. Even though he previously only held index funds, his account was used to buy speculative stocks, including DesignOne Japan Inc., whose daily trading volume surged massively on the day of the hack.

Japan’s Finance Minister Katsunobu Kato has urged brokerages to discuss compensation “in good faith.” The Japan Securities Dealers Association is also working on making multi-factor authentication mandatory for all trading accounts.

“It’s not acceptable to issue a blanket denial of compensation,” said Chairman Toshio Morita. “Firms must consider each customer’s circumstances and respond appropriately.”

According to the Financial Services Agency (FSA), fraudulent trading cases skyrocketed from 33 in February to 736 by mid-April. While precise victim losses remain unclear, the breach has slowed momentum behind Japan’s investment expansion programs.

“Among people already using the system, including myself, there’s a sense that the financial firms need to do their jobs properly,” said researcher Yusuke Maeyama of NLI Research Institute. “When issues like this come up, it just reinforces their fears.”

Cybersecurity experts say criminals use tactics such as adversary-in-the-middle attacks and infostealer malware to hijack accounts. According to Nobuhiro Tsuji from SB Technology, these attacks begin with phishing emails or malicious ads that redirect users to fake websites designed to intercept login credentials. Some scams even mimic real websites alongside fake ones in split-screen browser layouts.

Infostealers, on the other hand, are malware that can extract stored passwords and personal data from infected devices without the user’s knowledge. Japan's preference for browser-based trading platforms over mobile apps—which offer better security—has contributed to the problem, said Yutaka Sejiyama of Macnica. A recent Macnica Security Research Center report found at least 105,000 leaked credentials linked to Japan.

Many victims, like Mori, have voiced their concerns on social media, sharing their losses and frustrations. Some even considered legal action but backed out due to the time and effort involved. Mori is now contemplating closing her Rakuten account but is unsure which firm to trust, fearing hidden fees or pressure tactics from full-service brokerages.

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User Security
Cyber Fraud Deepfakes Financial Scam Hong Kong Police User Security

Eight Arrested Over Financial Scam Using Deepfakes

 

Hong Kong police have detained eight people accused of running a scam ring that overcame bank verification checks to open accounts by replacing images on lost identification cards with deepfakes that included scammers' facial features. 

Senior Superintendent Philip Lui Che-ho of the force's financial intelligence and investigation division stated on Saturday that the raid was part of a citywide operation on scams, cybercrime, and money laundering that took place between April 7 and 17. Officers arrested 503 persons aged 18 to 80. Losses in the cases surpassed HK$1.5 billion (US$193.2 million. 

Officers arrested the eight suspects on Thursday for allegedly using at least 21 Hong Kong identification cards that were reported lost to make 44 applications to create local bank accounts, according to Chief Inspector Sun Yi-ki of the force's cybersecurity and technology crime branch. 

“The syndicate first tried to use deepfake technology to merge the scammer’s facial features with the cardholder’s appearance, followed by uploading the scammer’s selfie to impersonate the cardholder and bypass the online verification process,” Sun said. 

Following the successful completion of online identification checks at banks, thirty out of the forty-four applications were accepted. In half of the successful attempts, artificial intelligence was used to construct images that combined the identity card's face with the scammer's. The others just substituted the scammer's photo for the one on the ID.

Police claimed the bank accounts were used to apply for loans and make credit card transactions worth HK$860,000, as well as to launder more than HK$1.2 million in suspected illegal proceeds. Sun said the force was still looking into how the syndicate obtained the ID cards, which were claimed lost between 2023 and 2024. On suspicion of conspiracy to defraud and money laundering, police detained the six men and two women and seized numerous laptops, phones, and external storage devices. 

The accused range in age from 24 to 41, with the mastermind and main members of the ring allegedly belonging to local triad gangs. Lui urged the public against renting, lending, or selling access to their bank accounts to anyone.

The 333 men and 170 women arrested during the citywide raid were discovered to be engaged in 404 crimes, the most of which were employment frauds, financial swindles, and internet shopping scams. They were caught for conspiracy to defraud, gaining property by deception, and money laundering. Two cross-border money-laundering operations were busted in coordination with mainland Chinese authorities over the last two weeks. 

Lui claimed that one of the syndicates laundered alleged illicit earnings from fraud operations by hiring tourists from the mainland to purchase gold jewellery in Hong Kong. Between last December and March of this year, the syndicate was discovered to have been involved in 240 mainland scam instances, resulting in losses of 18.5 million yuan (US$2.5 million). 

“Syndicate masterminds would recruit stooges from various provinces on the mainland, bringing them to Hong Kong via land borders and provide hostel accommodation,” the senior superintendent stated.

Syndicate members would then arrange for the recruits to purchase gold jewellery in the city using digital payment methods, with each transaction costing tens to hundreds of thousands of Hong Kong dollars. On Tuesday last week, Hong Kong police apprehended three individuals who had just purchased 34 pieces of gold jewellery for HK$836,000 per the syndicate's orders. Two of them had two-way passes, which are travel documents that allow mainlanders to access the city. The third suspect was a Hong Konger.

On the same day, mainland police arrested 17 persons. The second cross-border syndicate arranged for mainlanders to create accounts in Hong Kong using fraudulent bank, employment, and utility bill documents. Police in Hong Kong and the mainland arrested a total of 16 persons in connection with the investigation. From December 2023 to April, the syndicate was involved in 61 scam instances in the city, resulting in losses of HK$26.7 million. Accounts were created to receive the scam money.
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User Security
Bank Scam Cyber Fraud Data Leak Financial Scam Fraudulent Message User Security

Five Ways to Identify a Bank Fraud And Stay Safe

 

It is not unusual for your bank to try to contact you. However, some of those emails and phone calls are simply scammers taking advantage of your trust in your bank to scam you. In general, you should be extremely sceptical of any unexpected messages. 

Modus operandi

You receive a phone call claiming to be from your bank informing you of a problem with your account. This is typically used for security purposes, such as informing you when someone is unlawfully accessing your account or has stolen your identity. 

Their response is to ask you to transfer all funds to a safe account' while the problem is resolved. The problem is that no one is attempting to access your account, and you are sending money directly to the crooks. The funds are then moved swiftly to other accounts around the world. 

Additionally, bank transfer scams might be the most common telephone, or vishing, scam, but they are far from the only one. Others may attempt to gain remote control of your computer by claiming there is a problem with your internet connection or that you have a virus.

In reality, they use this time to install malware on your computer and steal your personal information. Another strategy is to claim you're eligible for a refund or compensation but have received too much. You will then be asked to return the difference. 

How to detect a scam  

Urgency:  Fraudulent mails can generate a sense of urgency or mislead you into acting quickly. They may warn you about account termination, blocking your ATM card, or missing out on a limited-time promotion. Be wary of messages that urge you to take immediate action. 

Sender information: Legitimate banks usually send messages from certain phone numbers or email addresses. Be wary of messages from unknown phones or addresses that use generic greetings such as "Dear Customer" instead of your name. 

Personal data: Real banks would never request critical information such as your password, CVV code, OTP (One Time Password), or entire account number over SMS or email. If a message prompts you to update or verify such information, do not answer and instead contact your bank immediately. 

Grammatical errors: Legitimate bank messages are usually well-written and formatted. Typos, grammatical errors, and unprofessional language can all be indicators of a fake message. 

Verify: If you are unsure regarding a message, always contact your bank immediately using their official contact information (phone number or website) to enquire about its legality.

Better safe than sorry

The Federal Trade Commission reports that last year, fraud cost consumers over $12.5 billion. You can take measures to make it difficult for a bad actor to leave with anything, even though it could be simple for them to contact you by email, text, or social media. It's wise to use caution when dealing with something as important as your finances.
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