The Bengaluru Police have arrested eight individuals, including a manager and three sales executives from Axis Bank, in connection with a fraudulent scheme promising substantial returns through stock investments. The alleged fraud amounts to a staggering Rs 97 crore, according to a Moneycontrol report.
The cyber-crime unit has revealed that 254 cases linked to this scam have been registered across the country. Fraudulent transactions totaling Rs 97 crore were conducted through six bank accounts reportedly opened by bank staff.
The arrested individuals include Kishore Sahu, a bank manager at Axis Bank’s Nagarabhavi branch in West Bengaluru, as well as sales executives Manohar, Karthik, and Rakesh. Four additional suspects—Lakshmikanta, Raghuraj, Kengegowda, and Mala CP—who held mule accounts, have also been detained.
The investigation began after a resident from Yelahanka in north Bengaluru filed a complaint in March. The complainant stated he was added to a WhatsApp group that claimed to provide stock trading tips, assuring returns up to ten times the initial investment. Initially investing Rs 50,000, he reportedly received messages indicating substantial gains, leading him to invest a total of Rs 1.5 crore by June.
The scammers allegedly sent doctored screenshots suggesting his trading account had grown to Rs 28 crore. Suspicion arose when they requested a “server management fee” of Rs 75 lakh to withdraw the funds, prompting the man to report the incident to the Cyber Crime Police.
The investigation revealed multiple bank accounts associated with the accused, including two current accounts linked to an Axis Bank branch in Nagarabhavi. These accounts were opened under dubious circumstances, with the holders failing to provide adequate documentation regarding their residency or business activities. In total, Rs 97 crore was transacted through these six accounts.
The police arrested the bank manager and sales executives on September 26, following the probe, and they were remanded to 12 days of police custody. During interrogation, the suspects named six account holders from Chikkamagaluru, four of whom, including a woman, were apprehended on September 29.
The bank manager and sales executives remain in judicial custody, while authorities continue their search for nine additional suspects, some of whom may be located abroad.
In light of these developments, both the Reserve Bank of India and the Securities and Exchange Board of India have reiterated warnings to the public regarding fraudsters promising unrealistic returns. They advise individuals to seek investment advice only from registered professionals, as scams via messaging apps are on the rise.