Cyber Crime probes novel ‘investment fraud’

The Cyber Crime Wing of Tamil Nadu police is probing a novel fraud committed on the pretext of sharing investment app.

Sanjay Kumar, Additional Director-General of Police, Cyber Crime Wing, said: “A new modus operandi was reported to us. The fraudsters lure the victims to download MGU Investment App, promising good returns. It is shared through friends and relatives mostly in areas near Coimbatore, Pudukottai, Erode and Namakkal districts. Built on the MLM principle, it requires a person to have others join the app and invest. Once a person downloads the app and invests in it, he needs to refer it to others and get them to invest. If the new person does invest, then, the first person is supposed to get 3% commission.

The app suddenly stopped working on May 15 and was deleted from the Google Play Store. People who invested through the app lost their money. So far, four cases have been reported from four places.

He said the State Cyber Crime Wing has been taking steps to spread awareness among people on reporting financial frauds through helpline 1930 and National Cyber Crime Reporting Portal.

Recently in the State, SIM card vendors (point of sale) had sold thousands of SIM cards using fake identity cards and issued SIM cards. The Department of Telecommunication (DoT) had scrutinised the data using facial recognition software and blocked 55,982 cases in the State.

The DoT has requested the Cyber Crime Wing to take action against the vendors. The Cyber Crime Police have registered 12 cases in Villupuram, Cuddalore, Coimbatore, Salem, Tiruchi, Thanjavur, Tirunelveli, Thoothukudi and Tiruppur and arrested five persons.