The investigation started after a 58-year-old local in Akshaya Nagar was duped of ₹3.03 crore in November. The victim was lured into a dummy stock market investment via Telegram link and an app designated "Neo System." Working under the direction of DCP M. Narayana (Electronic City Division), the police monitored the flow of funds, which ultimately took them towards a network of "mule" or rental bank accounts.
Key Arrests and Masterminds
- The Kingpin: Mumbai-based Prem Taneja (55), now in hiding in Dubai. A lookout notice is out for his arrest.
- Technical Head: Mohamad Huzaifa (22), a college dropout from Bengaluru. He was a pro-thumb gamer that had caught Taneja's eye after hacking Taneja's betting apps twice. Taneja eventually hired him to manage his daily operations and funds for the bank accounts.
- The Accomplice: Huzaifa’s mother, Sabana, was arrested for helping her son find bank accounts.
- National Network: 10 others from Uttar Pradesh, Bihar, Rajasthan and Jharkhand were arrested through a call center office in New Delhi.
How the Scam Worked
The gang was based out of a specialized office in New Delhi and used an elaborate hierarchy of its members to win over its victims:
Luring: Victims would be approached through WhatsApp or Telegram with promises of huge returns on their stock investments, or part-time work.
- The App: Victims were told to download apps such as "Swamiji.com" or "Neo System."
- Rental Accounts: Huzaifa lures laborers and the poor with money to open bank accounts under their name. He supervised more than 7,500 rental accounts for the syndicate.
- Laundering: The stolen money swiftly passed through these accounts and became cryptocurrencies within Dubai.
Sophisticated Technology Used
They found out the accused spoke to Prem Taneja in Dubai using satellite phones.
- No traceability: These mobile phones bypassed the country's traditional telecom infrastructure, making it impossible for the Telecom Department to follow the telecom provider's trajectory.
- Automatically Delete Data: Call logs and data were programmed to self-destruct within two minutes of the conversation.
Seizures and Financial Impact
- Frozen Funds: ₹240 crore frozen in 4,500 bank accounts.
- Physical Assets: 500 grams worth of gold (₹1 crore), 58 mobile phones, 7 laptops, a satellite phone, ₹4.89 lakh in cash seized;
- Lifestyle: Huzaifa reportedly earned ₹30–35 lakh monthly, and spent this money on luxury watches, jewelry for his mother and girlfriend, and a new flat for his wedding.
Bengaluru Police Commissioner B. Dayananda has announced a ₹50,000 reward for the investigating team’s diligent work. The police have also contacted Google to remove the fake apps the gang used.
