Fake stock trading app scam: Retired TN chief conservator of forests duped of Rs 6.8 crore

Chennai, May 25 (IANS) The Cybercrime Wing of the Greater Chennai Police has arrested three men from Kerala in connection with an elaborate online investment scam that duped a retired Indian Forest Service (IFS) officer of Rs 6.8 crore.

The victim, Krishnan Kumar Kaushal (60), a native of Himachal Pradesh and a 1990-batch IFS officer, retired as the Tamil Nadu Principal Chief Conservator of Forests in July 2024.

In a complaint filed two months ago, he stated that he lost his life savings, retirement benefits, and the proceeds from the sale of his house after falling prey to fraudulent investment applications.

The arrested individuals have been identified as Sreejith R.Nair (47) of Ernakulam, Abdulsalu (47) of Kozhikode, and Mohammed Farwaiz (44) of Malappuram. They were brought to Chennai on a transit warrant and remanded in judicial custody.

According to police, Krishnan Kumar received WhatsApp messages in December 2024, prompting him to download two bogus investment apps -- SMC Apex and Shanda Capital. These apps were promoted by so-called customer service executives who assured him of high returns.

Between January and late January 2025, he transferred approximately Rs 6.58 crore to multiple bank accounts linked to the scammers, believing he was investing in legitimate stock market ventures. However, he soon became suspicious when he noticed discrepancies.

“The value of the shares shown in the app increased daily, but when cross-verified with official stock exchange data (NSE and BSE), the figures did not match,” he noted in his complaint.

Upon realising he had been duped, Kaushal reported the matter to the national cybercrime helpline (1930) and filed a complaint with the Chennai Police’s Cybercrime Wing.

A special team led by Inspector Peer Basha traced the fraudulent bank accounts to Kerala.

The investigation revealed that the arrested trio had been operating bank accounts on behalf of cyber fraudsters. The scammed money was routed abroad through illegal hawala networks and later converted into USDT cryptocurrency via the Binance trading app.

Police said five other individuals from Delhi and surrounding regions had previously been arrested in connection with the case. However, the three accused from Kerala played a key role in laundering the money through crypto transactions.

A senior police officer added, “The accused are suspected to be involved in similar scams reported in other parts of Tamil Nadu and across various states.”

--IANS

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