A case has been reported in the Police Station of Avadi, Tamil Nadu that a Goods and Services Tax ( GST ) lost around Rs. 39 lakhs in a fake stock trading application. The perpetrators were from Gujarat, Anand District.
The Avadi Police discovered that the scam, which primarily targeted small-time businessmen and farmers, also ensnared a GST official from Mangadu. This intricate fraud involved a deceptive trading app, social media manipulation, and intermediaries who utilized bank accounts obtained from unsuspecting individuals. According to the police, nearly 90% of cybercrime complaints in Avadi relate to this scheme.
In early December 2023, the GST official fell victim to the scam after engaging with an advertisement on a social media platform. He was contacted by a woman named Aditi, who added him to a WhatsApp group titled ‘Ashish Shah’s Dalal Street Trading Champions: VIP-2’. The group members were persuaded to download an app called CHE-SES from a fraudulent website and subscribe to an IPO with shares priced at ₹52 each.
Believing in the legitimacy of the scheme, the GST officer heavily invested, purchasing 7,000 shares along with additional investments, totaling nearly ₹39 lakh between December 13, 2023, and January 8, 2024. He transferred funds to various bank accounts and UPI IDs provided by the scammers. The fraudulent app showcased fake growth of his investments, deceiving him into thinking his funds were increasing. It was only when he attempted to withdraw his money that he realized he had been duped.
Following the report to the central crime branch of Avadi police, Commissioner K Shankar formed a specialized team led by a cyber-crime inspector to investigate. The investigation tracked the money trail to Anand, Gujarat, where the police arrested Premaram, a 43-year-old originally from Rajasthan but settled in Gujarat for 20 years. Premaram’s account was used to receive the initial ₹5 lakh from the GST official.
The investors should properly invest their money in the authorised applications.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
