1. Thousands of Indian Investors Defrauded in Ponzi Scheme

• Date: February 18, 2025
• Location: Telangana, India
• Details: Approximately 7,000 investors were duped into investing nearly ₹830 crores (~$100 million) in a Ponzi scheme orchestrated by Falcon Invoice Discounting. The scheme promised high returns of up to 22%, falsely claiming associations with major companies like Amazon and Britannia. Investors were lured through social media platforms and enticed by initial small payouts, which built credibility and encouraged larger investments. Eventually, the scheme collapsed, and the main perpetrator, Amardeep Kumar, remains at large. Authorities have arrested two individuals involved in the scam and are intensifying efforts to apprehend the primary suspect.
• Modus Operandi:
  • Creation of a fraudulent investment platform promising high returns.
  • False claims of partnerships with reputable companies to gain investor trust.
  • Utilization of social media for widespread promotion and recruitment.
  • Initial payouts to early investors to establish credibility, followed by solicitation of larger investments.
• Preventive Measures:
  • Verify investment opportunities with regulatory bodies such as the Securities and Exchange Board of India (SEBI).
  • Be cautious of schemes promising unusually high returns with minimal risk.
  • Conduct thorough research on the company’s history, financial health, and official partnerships before investing.
  • Avoid investments promoted primarily through social media without verifiable credentials.

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2. U.S. SEC Seeks India’s Assistance in Adani Fraud Investigation

• Date: February 18, 2025
• Location: India
• Details: The U.S. Securities and Exchange Commission (SEC) has sought assistance from Indian authorities to serve a complaint to Adani Group’s founder, Gautam Adani, and his nephew, Sagar Adani. They are accused of securities fraud and involvement in a $265 million bribery scheme. The SEC alleges that the Adanis bribed Indian officials to secure electricity contracts and misled U.S. investors about the company’s anti-corruption practices. Adani Group has denied the allegations, calling them baseless, and has promised to pursue legal action.
• Modus Operandi:
  • Alleged falsification of financial statements to inflate stock prices.
  • Undisclosed offshore payments and bribery to secure contracts.
  • Misrepresentation of the company’s ethical practices to investors.
• Preventive Measures:
  • Investors should cross-verify corporate filings with regulatory bodies like SEBI and SEC.
  • Companies must ensure transparent financial disclosures and adhere to ethical practices.
  • Governments should strengthen corporate governance laws to prevent such frauds.

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3. Aviva’s Indian Subsidiary Fined for Fake Invoice Scheme

• Date: February 16, 2025
• Location: India
• Details: The Indian subsidiary of British insurer Aviva has been ordered to pay $7.5 million in back taxes and penalties after an investigation revealed the creation of fake invoices to pay illegal commissions and claim improper tax credits. Between 2017 and 2023, Aviva India paid approximately $26 million to vendors for alleged marketing services, which were fronts for excessive commissions. The company incorrectly claimed $5.2 million in tax credits and evaded taxes through a clandestine system of fake invoices and cash payments. Aviva India announced plans to appeal the decision and stated that the order would not affect its operations.
• Modus Operandi:
  • Generation of fake invoices to document non-existent services.
  • Payment of illegal commissions under the guise of legitimate expenses.
  • Claiming improper tax credits based on these fraudulent invoices.
• Preventive Measures:
  • Conduct regular internal audits to detect financial discrepancies.
  • Implement strict compliance protocols for vendor engagements.
  • Ensure all financial transactions are transparent and verifiable.

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4. Kerala Reports Over ₹1,000 Crore Lost to Cyber Fraud in Three Years

• Date: February 12, 2025
• Location: Kerala, India
• Details: Residents of Kerala have lost a total of ₹1,021 crores to cyber fraud between 2022 and 2024, with ₹763 crores lost in 2024 alone. The majority of victims were private sector employees, pensioners, homemakers, and businessmen. Common scams included job frauds, online trading scams, and loan scams. Authorities have intensified efforts to combat the surge in digital financial crimes.
• Modus Operandi:
  • Job scams: Fraudsters offer fake employment opportunities, charging applicants fees.
  • Online trading scams: Scammers entice victims with promises of high returns on investments.
  • Loan scams: Fraudulent lending platforms charge upfront fees without providing loans.
• Preventive Measures:
  • Verify the authenticity of job offers and investment platforms before engaging.
  • Be cautious of unsolicited offers promising high returns or easy loans.
  • Report suspicious activities to cyber crime authorities promptly.

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5. SEBI Seeks Greater Access to Social Media Records

• Date: February 13, 2025
• Location: India
• Modus Operandi:
  • Fraudsters create fake investment advisory groups on Telegram & WhatsApp.
  • They sell insider tips, promoting certain stocks to artificially inflate prices (pump-and-dump schemes).
  • Once retail investors invest, fraudsters sell off their holdings, crashing stock prices and causing huge losses.
  • Social media companies often refuse to cooperate with SEBI in identifying these perpetrators.
• Preventive Measures:
  • Investors should verify investment advice from SEBI-registered analysts.
  • Avoid stock market tips on social media groups that promise overnight profits.
  • Regulators should have legal authority to remove misleading financial content quickly.

📞 Cybercrime Helpline: Dial 1930 (Available 24/7)
🌐 Report Online: www.cybercrime.gov.in
🏦 Bank Fraud: Contact your bank’s customer care and RBI Ombudsman at www.rbi.org.in
📩 Fake Trading/Investment Scams: Report to SEBI via www.scores.gov.in