Two victims lose nearly ₹1 crore in separate online trading scams in Kerala

Authorities in Kozhikode, Kerala have registered cases against unidentified fraudsters following separate online trading scams that defrauded two victims of nearly ₹1 crore in combined losses. The incidents underscore the growing menace of investment fraud schemes operating across digital platforms in the region.

Investigations into both cases have revealed a coordinated money laundering operation. According to preliminary findings, the accused systematically transferred the defrauded funds through a network of multiple mule bank accounts and current accounts that were specifically rented or created for the fraudulent operation. This multi-layered transfer mechanism is typical of organised online fraud rings seeking to obscure the trail of stolen money.

The use of rented bank accounts, commonly known as "mule accounts," has become a standard practice among cybercriminals operating online trading and investment schemes. Fraudsters typically recruit individuals to open bank accounts on their behalf, or compromise existing accounts, to receive and redistribute stolen funds before they are withdrawn or transferred overseas.

Police officials have urged the public to exercise caution when approached with investment opportunities through online platforms, particularly those promising unusually high returns. Citizens are advised to verify the credentials of investment platforms through official regulatory channels and to report suspicious financial activity to local law enforcement immediately.