Operation Chakra-V Uncovers Major Online Investment Fraud

Recent investigations under Operation Chakra-V have exposed a large-scale online investment fraud affecting thousands across India. The Central Bureau of Investigation (CBI) registered the case following inputs from the Ministry of Home Affairs’ I4C unit. The scam involved deceptive online schemes promising high returns through social media and encrypted messaging apps. Both Indian and foreign nationals orchestrated the fraud, exploiting digital platforms to cheat citizens of crores of rupees.

Modus Operandi of the Fraudulent Network

The accused used social media platforms like Telegram and WhatsApp to lure victims with false job offers and investment opportunities. Digital advertisements, bulk SMS, and SIM box communication systems promoted these schemes widely. They collected KYC documents to create fake profiles and shell companies. These companies were often registered under the names of unsuspecting individuals who were misled into part-time roles.

Creation and Use of Shell Companies

A complex network of shell companies was established mainly in Bengaluru. These firms served as conduits to launder and channel the crime proceeds. Fraudsters used forged credentials and digital signatures to incorporate these entities. Multiple bank accounts were opened under these companies to receive victim funds. Many Indian nationals acted as front directors while foreign operatives controlled the operations.

Money Laundering and Fund Diversion Techniques

Funds collected from victims were layered through various payment gateways, UPI platforms, and cryptocurrency exchanges. Large sums were converted into cryptocurrencies and gold to obscure the money trail. Some proceeds were sent abroad via clandestine channels. This multi-layered approach made tracking and recovery difficult. The operation revealed substantial financial flows linked to these shell companies.

Role of Technology and Cross-Border Involvement

The fraud leveraged encrypted messaging and mobile applications for recruitment and communication. Foreign-controlled entities directed several Indian nationals to operate illegal online gambling and investment frauds. The use of advanced digital tools and international coordination increased the scheme’s complexity and reach. This brought into light the growing challenge of cybercrime in the digital economy.