Anil Ambani Under ED Scanner in ₹3,000 Crore Loan Fraud Case

In a sweeping crackdown, the Enforcement Directorate (ED) has launched extensive raids on over 35 locations linked to industrialist Anil Ambani and his former companies, investigating an alleged ₹3,000 crore loan fraud involving Yes Bank. The probe, conducted under the Prevention of Money Laundering Act (PMLA), marks a significant escalation in scrutiny of Ambani’s financial dealings.

ED Targets Alleged Loan Diversion

The ED’s investigation centers on loans disbursed between 2017 and 2019, during which Yes Bank allegedly extended credit to entities connected to Anil Ambani without proper due diligence. According to officials, the loans were approved using backdated documents, and funds were routed through shell companies with common directors and addresses, raising red flags about the legitimacy of the transactions.

Sources suggest that bribes may have been paid to bank officials to facilitate the loan approvals. The ED suspects that the diverted funds were used for purposes unrelated to the original loan intent, violating banking norms and triggering money laundering concerns.

SBI Labels RCom and Ambani as “Fraud”

The raids follow a recent move by the State Bank of India (SBI), which on June 13, 2025, officially declared Reliance Communications (RCom) and Anil Ambani as “fraudulent” entities. This declaration has intensified regulatory focus on Ambani’s past ventures, particularly those that collapsed under heavy debt.

Corporate Denials and Clarifications

In response to the raids, Reliance Infrastructure and Reliance Power—two companies still operational under the Reliance Group umbrella—issued statements distancing themselves from the controversy. Both firms emphasized that:

• They are independent entities with no financial linkage to RCom or Reliance Home Finance Ltd (RHFL).
• Anil Ambani does not hold any board position in either company.
• The matters under investigation are over a decade old, and many are either sub-judice or already resolved.

The companies reassured stakeholders that their operations remain unaffected and that they are cooperating with authorities as needed.

A Personal Flashback: Love Against the Odds

Amid the legal storm, a nostalgic human-interest story resurfaced, shedding light on Anil Ambani’s personal life. Decades ago, his parents—Dhirubhai and Kokilaben Ambani—initially opposed his relationship with Tina Munim, a popular Bollywood actress. Despite family resistance, the couple reunited and married in 1991, and have since built a life together, raising two sons.

Their enduring relationship stands in contrast to the turbulence surrounding Ambani’s business empire, offering a glimpse into the personal resilience behind the public figure.

What’s Next?

With the ED’s investigation gaining momentum and corporate entities scrambling to clarify their positions, the coming weeks could prove pivotal for Anil Ambani’s legacy. Whether this probe leads to formal charges or further revelations remains to be seen.

The Nagpur Today was the first media outlet to report on the Enforcement Directorate (ED) raids against Anil Ambani, publishing their coverage on July 24, 2025, at 12:23 PM IST. The report detailed the scope of the investigation, including:

• Raids at over 35 premises, involving 50 companies and 25 individuals
• Alleged ₹3,000 crore loan diversion from Yes Bank between 2017–2019
• Suspected bribes to Yes Bank promoters
• Violations like backdated loan documents, shell companies, and common directors

This was followed closely by other outlets like:

• Republic World
• Indian Express
• MSN India

Microsoft, IFC Backed Builder.ai Collapses After AI Fraud Exposed

Founded in 2016 by Sachin Dev Duggal and headquartered in London, Builder.ai burst onto the tech scene with the promise of revolutionizing app development. The company marketed its platform as an artificial intelligence–powered solution, touting an AI assistant named Natasha that could build software as effortlessly as ordering a pizza.

With a dazzling valuation of $1.5 billion, Builder.ai attracted heavyweight investors including Microsoft, the Qatar Investment Authority, SoftBank’s DeepCore, and IFC, and raised more than $450 million in funding.

Beneath the glossy marketing narrative, however, a very different story was unfolding. Rather than relying on groundbreaking algorithms and autonomous machine learning, Builder.ai’s “AI” was fueled by human ingenuity. Investigations revealed that more than 700 skilled engineers in India were manually crafting the code that the company claimed was generated by Natasha. These engineers, working from hubs in cities like Bengaluru and Noida, were responsible for delivering customized software solutions for clients, all while their efforts were misrepresented as the output of advanced AI.

The exposure of this deception sent shockwaves through the industry. Former employees and insiders began to speak out, pointing to a well-orchestrated façade where human developers were camouflaged as an AI solution. What initially appeared to be a leap forward in technology turned out to be a classic case of “AI washing”—where a company exaggerates its technological capabilities to lure in investments and boost its market presence. This revelation not only undermined the credibility of Builder.ai but also called into question the ethics of promoting technology based on inflated claims

The financial repercussions were swift and severe. Builder.ai’s management had previously reported stellar revenue figures—claims of $220 million in 2024 were later debunked by an independent audit showing actual earnings closer to $50 million. With lender Viola Credit seizing $37 million from the company’s accounts and mounting debts including approximately $85 million owed to Amazon and $30 million to Microsoft, the startup found itself on a downward spiral.

These financial misrepresentations led to insolvency proceedings across multiple jurisdictions, forcing the company to lay off nearly 1,000 employees in India, the UK, and the US.

Beyond the immediate fallout, the collapse of Builder.ai has ignited a broader debate about transparency and accountability in the AI industry. The scandal stands as a stark reminder that in a time dominated by the promise of artificial intelligence, authenticity remains paramount. Investors and regulators are now urged to conduct greater due diligence and demand verifiable evidence behind any claims of AI-driven innovation. The Builder.ai debacle serves as a cautionary tale, urging the tech community to distinguish genuine technological breakthroughs from marketing-driven illusions.

As the industry reels from this saga, many are left questioning the ethical responsibilities of startups seeking to capitalize on AI hype. The case of Builder.ai underscores the need for clear standards and robust verification mechanisms to prevent similar deceptions in the future. In a rapidly evolving technological landscape, the lessons learned from this collapse may pave the way for stronger industry regulations and a renewed focus on real, substantive innovation.

The story of Builder.ai is more than just a tale of financial misrepresentation; it is a reminder that in the race toward the future, innovation built on transparency and truth will always outlast the fleeting allure of hype. The fallout is prompting a broader discussion on how best to balance bold visions with ethical practices in the age of artificial intelligence.

Myntra Reports Loss of ₹1.1 Crore Due to Refund Scam in Bengaluru, Fraudster Exploits Refund Policy

Myntra, a Flipkart subsidiary, recently reported a significant loss of ₹1.1 crore due to a refund scam in Bengaluru. Fraudsters exploited the company's refund policy by placing bulk orders and then claiming refunds for non-existent, incorrect, or fake items.

The scam took place between March and June 2024, and involved around 5,529 fraudulent orders delivered to various addresses across Bengaluru.

The fraudsters would often claim that the number of products received was less than what they had ordered, or that the items were different from what was ordered.

Myntra has approached the Bengaluru police to investigate the matter. It's suspected that a gang from Jaipur, Rajasthan, is behind these fraudulent activities. The police have registered a case under the Information Technology Act and IPC sections 419 (cheating by personation) and 420 (cheating and dishonestly inducing delivery of property).

Myntra's case of fraud comes within a few days after another e-commerce platform Meesho faced similar cheating by fraudsters. Cybercrime police in Surat arrested three individuals who cheated Meesho by posing as suppliers and customers. They placed orders and then claimed refunds or raised complaints about the products received.

Myntra is also working on tightening its refund policies and improving its fraud detection mechanisms to prevent such incidents in the future.

According to reports, Flipkart and Myntra may soon start charging cancellation fees for orders that are canceled. The reports, that are still speculative, suggest that Flipkart and Myntra customers will only have a limited amount of time to cancel their orders. After that deadline is crossed, the customers will not be able to cancel the order. However, the e-commerce giant has not confirmed the development yet.

Besides, Myntra has recently ventured into quick commerce with its new service, M-Now, which promises to deliver fashion and beauty products within 30 minutes.

Myntra has bounced back to profitability in FY24 after a loss of ₹782 crore in FY23. The company posted a profit of ₹30.9 crore in FY24, driven by a 14.71% growth in operational revenue and effective cost-cutting strategies.

Getting back to rise in cases of frauds, e-commerce frauds in India have been on the rise, especially with the increase in online shopping. About 57% of all fraud incidents in India are platform frauds, with over 26% of organizations losing over USD 1 million due to it, said a report by PwC India.

Payment Fraud accounts for 92% of all customer frauds, including unauthorized digital purchases and identity theft. Around 40% of platform frauds are conducted by internal actors, often in collusion with external perpetrators.

Deepfake Videos of Narayana Murthy and Mukesh Ambani Scammed Two to Lose ~₹ 90 Lakh

Two residents of Bengaluru fell victim to deepfake videos featuring Infosys co-founder Narayana Murthy and Reliance Industries Chairman Mukesh Ambani, collectively losing around ₹95 lakh.

These deepfake videos promoted trading platforms and promised high returns, leading the victims to invest large sums of money. One victim lost ₹67 lakh, while another lost ₹19 lakh.

First Victim:

A woman from Banashankari came across a video on social media promoting a trading platform with high returns. She clicked on a suspicious link, shared her details, and was contacted by someone claiming to be an agent. Initially, she invested ₹1.4 lakh and received ₹8,000 in returns. Encouraged by this, she invested ₹6.7 lakh but didn't receive any returns. She also lost ₹67 lakh to another platform promising work-from-home opportunities.

Second Victim:

A retired employee saw a similar video on Facebook promoting a trading platform. He transferred ₹19 lakh to two different bank accounts provided by the fraudsters but didn't receive any response after the transfer.

Both victims didn't verify the authenticity of the videos and ended up clicking on links that led to fake websites created by fraudsters. Separate cases have been registered at the CEN (Cyber Economic and Narcotics) South police station, and investigations are ongoing to track down the culprits.

Deepfake technology played a crucial role in this scam by creating highly realistic videos of Narayana Murthy and Mukesh Ambani. These videos were used to promote fraudulent trading platforms, convincing victims that the endorsements were genuine. The deepfakes were so convincing that the victims didn't question their authenticity and ended up investing large sums of money.

It's a stark reminder to always verify the authenticity of online content, especially when it involves financial investments.

It must be recalled that last year, Narayana Murthy had alerted people that many trading platforms are using his identity for promotions and said that he does not endorse any of them.

In an X post, Murthy said, “In recent months, there have been several fake news items propagated via social media apps and on various web pages available on the Internet claiming that I have endorsed or invested in automated trading applications named BTC AI Evex, British Bitcoin Profit, Bit Lyte Sync, Immediate Momentum, Capitalix Ventures etc. The news items appear on fraudulent websites that masquerade as popular newspaper websites and some of them even publish fake interviews using deepfake pictures and videos. I categorically deny any endorsement, relation or association with these applications or websites.”

In response to the deepfake scam, the Bengaluru police have taken several actions. Separate cases have been registered at the CEN (Cyber Economic and Narcotics) South police station. The police are actively investigating to track down the culprits behind the scam.

Public Awareness: Authorities have urged the public to be cautious of deepfake videos and to verify the authenticity of any suspicious content before taking any action. They have also advised people to report any such incidents to the police immediately.

Helpline: The Bengaluru City Police have launched a helpline (1930) for victims of deepfake scams to register complaints and seek assistance.

It's crucial to stay vigilant and report any suspicious activity to the authorities to help prevent such scams in the future. If you or someone you know has been affected, don't hesitate to reach out to the police for help.

Over 100 Gujarat Engg. College Students Duped by Gurugram Startup, Misused Documents for ₹2.5 Crore Loan

Over 100 students of a reputed engineering college in Ahmedabad, Gujarat have been caught in the scam of a dubious startup in Gurugram, said a report by iamGujarat.com authored by Ashish Chauhan. The students claim that the alleged startup took their documents and misused them on the pretext of giving them jobs. The startup took an education loan of Rs 2.1 lakh in the name of each student while keeping students in dark. When the students started getting calls from the bank for EMI, the students then came to know that the loan was taken in their name. Loans of more than 2.5 crore rupees have been taken in the name of 124 students.

The Gujarat Police has not yet registered a complaint in this matter because they say that this is a civil case, said the report. 

Citing the students, the report further said that these 124 students were selected in the group through campus placement in 2021. Two supposed representatives of the startup came to the Engineering college located in Sola, a suburb area of Ahmedabad city. The students says that the loan was taken two months after the students were hired. The startup claimed that they provide business consultancy to firms. This Gurugram-based startup,  the name which remain undisclosed in the report, was paying students irregularly. However, when reminders for EMIs of Rs 5,000 started coming from a well-known bank, these
students realized that the loan had been taken without their knowledge and consent.

The EMI amount was deducted from the account of the students who had balance in their bank account. While the CIBIL (credit rating) score of those who did not have a balance in their account was adversely affected. Students were not able to repay the loans, which they had not taken in first place, so their credit rating was going down. Students were mostly given work from home by this startup.

When the students confronted the representatives of the alleged company, the representatives said that the issue would be resolved quickly and that they need not worry.

One of the selected students in 2021 was automobile engineer Alwaz Pathan. He has recently filed a complaint at the Shahpur police station in Ahmedabad and has alleged fraud against two representatives of the company. "During the selection, he made us sign an agreement and took our digital signatures besides taking several documents.

"During the selection, he made us sign an agreement and took our digital signatures besides taking several documents. We were told that the job would be confirmed after a one-year probation period. Few days after my probation started, I received an SMS regarding EMI. When I asked the company about the EMI, they said that they will settle the amount in my salary. They neither gave us salary nor nor reimbursed us any amount", said Pathan.

Alwaz Pathan then realized that this startup had taken an education loan of Rs 2.10 lakh in the name of each student by misusing his documents and digital signature. Alwaz resigned from the firm but later came to know that the company had cheated 100 more students who graduated from the batch between 2021 and 2023 in this manner.

According to Alwaz Pathan, the future of the recruited students is uncertain as the company recently declared bankruptcy. "Many students do not have funds in their bank accounts. The CIBIL scores of students unwittingly caught in the scam have deteriorated." Alwaz Pathan's lawyer Irshad Mansoori said that he approached the Sola police but they refused to register a complaint. "We also approached the cyber crime police but they also did not take up the complaint.

According to information collected by Times of India from police sources, "Many students do not have funds in their bank accounts. The CIBIL scores of students unwittingly caught in the scam have deteriorated." Alwaz Pathan's lawyer Irshad Mansoori said that he approached the Sola police but they refused to register a complaint. "We also approached the cyber crime police but they also did not take up the complaint. After which we approached the Shahpur police but they refused to register an FIR as it was a civil case", said Irshad Mansoori.

RBI Ombudsman Partners Bajaj Finance & Bajaj Auto to Create Awareness on RBIOS, Fraud and Financial Literacy

The Office of the Reserve Bank of India Ombudsman Mumbai, in partnership with Bajaj Finance and Bajaj Auto Ltd, successfully organised an extensive awareness program on the Reserve Bank Integrated Ombudsman Scheme (RBIOS), Fraud Awareness, and Financial Literacy on October 19th and 20th, 2023 at the Bajaj Auto plant premises in Waluj (Aurangabad).

The program was graced by the presence of Mr. H S Verma, Deputy RBIO Mumbai II, Mr. Aniruddha Mallick, AGM RBIO Mumbai II, and Mr. Akash Kabra, AM RBIO Mumbai II, along with Mr. Rinku Anand, Principal Nodal Officer, and his dedicated team. In addition, numerous staff members from the State Bank of India (SBI) and approximately 300 enthusiastic participants actively participated in this learning initiative.

Mr. Verma emphasised the success of the RBIOS as an indispensable resource for the common man. He elucidated the simple and cost-free procedure for filing complaints under the scheme, which can be conveniently done online at cms.rbi.org.in

The RBI Integrated Ombudsman Scheme (RBIOS) serves as a free, swift, impartial, and efficient mechanism to address issues that banks or other regulated companies fail to resolve within 30 days of receiving a complaint. Mr. Verma urged participants to remain vigilant by monitoring their account activities through SMS and promptly reporting unauthorized transactions to their respective banks.

He also stressed upon the importance of safeguarding personal information, such as the CVV number on credit cards, to prevent potential losses if the card is lost or compromised. Mr. Verma warned against sharing sensitive data like bank account numbers, debit card details, identification (ID), Personal Identification Number (PIN), or One-Time Password (OTP) with anyone, particularly fraudsters who may request this information over the phone. Furthermore, he advised recipients of SMS or email notifications about lottery winnings or draws not to send any money.

Participants were also encouraged to lodge complaints related to digital wallets, prepaid payment instruments, mobile banking, and electronic banking, including cases of non-credit to merchants, refunds for failed/unsuccessful/unauthorized transactions, and more, through the RBIOS online portal.

Representatives from Bajaj Finance, including Mr. Rinku Anand, Mr. Ankur Arora, and Ms. Megha More, addressed the participants, sharing valuable insights and information. Mr. Mallick and Mr. Kabra urged all attendees to exercise caution when using online banking and ATMs, advising against sharing PINs or OTPs with anyone. They also highlighted that individuals can inquire about the status of their complaints or raise concerns by contacting the Reserve Bank Ombudsman on the toll-free number 14448.

The collaboration between the Reserve Bank of India Ombudsman Mumbai, Bajaj Finance, and Bajaj Auto Ltd underscores their commitment to enhancing public awareness, financial literacy, and fraud prevention. The event served as an important step in empowering individuals to protect their financial interests and seek prompt resolution to any issues they encounter within the banking and financial sector.

ABOUT BAJAJ FINANCE LIMITED

Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with a significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers.

BFL, a thirty-six-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 72.98 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BBB-/Stable a and a short-term rating of A-3 by S&P Global ratings. To know more, visit www.bajajfinserv.in/ 

Rise in External Fraud Post Covid, Over 95% Organisations in India Have Experienced ‘New Fraud’ Incidents in the Past 2 Years: PwC Survey

Emerging threats around ESG reporting fraud, anti-embargo fraud and supply chain fraud could cause major business disruption over the coming years

• 52% of companies experienced fraud or economic crime in the last 24 months.
• Among the organisations that encountered fraud in the last 24 months, 12% experienced ESG reporting fraud, 9% experienced anti-embargo fraud and 19% experienced supply chain fraud.
• 67% of companies that experienced fraud reported that the most disruptive incident came via an external attack or collusion between external and internal sources.
• 40% lost between USD 50,000- 1,00,000 due to COVID-19 disruptions

Following the outbreak of the COVID-19 pandemic, the uncertainties associated with it, and the subsequent shift to digital operations and remote working, businesses have been exposed to new risks related to digital security, employee safety and disinformation. These in turn have led to new incidents of fraud: 52% of Indian companies experienced fraud or economic crime in the last 24 months and an overwhelming 95% of these have experienced new types of fraud as a result of the disruption caused by COVID-19. This is according to the PwC’s recent report Global Economic Crime and Fraud Survey 2022: India Insights.

Top 5 Frauds Faced By Indian Organisations 

Nearly 67% of organisations in India that experienced fraud reported that the most disruptive incident came via an external attack or collusion between external and internal sources. This proportion was 56% in our 2020 survey.

On the bright side, companies in India have been undertaking fraud prevention measures to combat fraud which are working – 52% of Indian organisations experienced fraud or economic crime within the last 24 months, as opposed to 69% in our 2020 survey.

Puneet Garkhel, Partner and Leader, Forensics Services, PwC India, said: ‘With organisational perimeters becoming more vulnerable over the past two years, it is imperative for businesses to not only continually focus on policies, training and internal controls but also prioritise investing in sophisticated technologies to manage and mitigate the evolving nature of frauds. It is increasingly becoming important for organisations to understand the end-to-end life cycle of customer-facing products and also strike a balance between user experience and fraud controls. Over time, formidable actors become better at exploiting cracks.’

The new types of fraud experienced by companies include misconduct risk (67%), legal risk (16%), cybercrime (31%), insider trading (19%), and platform risk (38%). Misconduct was the biggest challenge faced by organisations as bad actors began collaborating and taking advantage of pandemic-related uncertainty and volatility. Amongst organisations that reported fraud, conduct risk (or risks associated with individuals within the firm, or vendors, agents and customers) was the biggest threat at 90%.

Fraud and economic crimes impact both big and small firms. However, the survey found fraud to be more prevalent amongst big firms: 60% of companies surveyed in India having global annual revenues above USD 1 billion experienced fraud during the past 24 months (globally, 52% of organisations with revenues over USD 10 billion experienced fraud). The impact on smaller companies was less extensive as only 37% of companies in India with global annual revenues below USD 100 million experienced fraud during the past 24 months (global: 38%).

Surge in customer fraud

Our 2020 survey had found cybercrime, accounting/financial statement fraud, and bribery and corruption to be the top three frauds in India. Though globally, the findings of this year’s survey are similar to those of our 2020 survey, for India, the top frauds have changed significantly. In India, customer fraud (e.g. frauds involving mortgage, credit cards, claims, cheques) was the top fraud reported by 47% of companies. Cybercrime came a close second, with 45% of Indian organisations reporting this type of fraud. Further, KYC failure was experienced by 34% of Indian firms that experienced fraud, corruption or economic/financial crime in the last 24 months.

Emerging threats

Indian organisations are facing multiple emerging risks that have the potential to cause greater disruption in the coming years. One such area is ESG reporting fraud (the act of altering ESG disclosures so that they do not truly reflect the activities or progress of an organisation) — 12% of organisations experienced ESG reporting fraud. Companies in India are facing several challenges in managing risks associated with ESG targets and reporting requirements, such as a general lack of understanding about ESG (reported by 45% of organisations surveyed), lack of ownership over ESG in the organisation (at 42%) and inability to accurately monitor or report ESG metrics within the organisation (46%). As ESG continues to increase in importance for stakeholders, the incentive to commit fraud in this area is likely to grow.

Another emerging area of disruption is anti-embargo fraud (participation in unsanctioned foreign boycotts, or when an organisation is tricked into breaking an embargo). Though just 9% of organisations experienced anti-embargo fraud over the last 24 months, this may change in the next two years as global sanctions rise to the highest levels in recent history.

Supply chain fraud also has the potential to cause greater disruption in the coming years – 19% of organisations experienced it in the last 24 months.

Organisations also experienced increased risk due to customer fraud (30%) and KYC failure (22%) as a result of disruption caused by COVID-19. Globally, these percentages were much lower – 17% for customer fraud and 10% for KYC failure. With an increase in digital banking and payments, KYC fraud is another emerging risk that organisations need to watch out for

About the survey:

PwC’s Global Economic Crime and Fraud Survey (GECS) 2022 surveyed 1,296 organisations across the world, out of which 112 were from India and represented 32 diverse industries. Over 76% of the respondents from India sit in the C-suite. The India survey covered both small and large organisations. 

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 152 countries with over 327,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.,

Instant Loan Apps Fraud: Chinese National Kingpin, Cyberabad Police Identifies 116 Similar Apps, Wrote to Google for Deletion

• Singapore based Chinese National is the kingpin in the Instant Loan Apps Fraud: Cyberabad Police
• We are probing into their source of funding: Mr. VC Sajjanar, Police Commissioner, Cyberabad Police of Telangana State
• Police have identified 116 similar apps and wrote to Google to delete them. They also found another 700 to 800 similar apps existing on the internet space. They are also looking into them.
• Celebrate New Year Quietly: Cyberabad Police 

Singapore based Chinese National is the mastermind in the Instant Loan Apps Fraud announced Mr. VC Sajjanar, Police Commissioner of Cyberabad Police. Addressing a press conference on Friday morning at Commissionerate office in Cyberabad, Mr. Sajjanar said, Cyber Crime Police of Telangana state raided a call centre "Cubevo Technology Pvt Ltd located in the Hyderabad city. According to him, it is headed by Chinese National, Zixia Zhang, who is currently absconding. According to the information available to the police, this Chinese national believed to be hiding in Singapore. 

Meanwhile, the police announced that they have arrested 4 members including another Chinese national. They have also seized two laptops and four mobile phones from their possession. They also seized a bank account with a balance of Rs 2crore in the account. 

Aniruddh Malhotra, Satyapal Khyalia, Yi Bai Dennis, Murathoti Richie Hemanth Seth the four accuses of Instant Loan Apps Gang

Zixia Zhang, along with Umapati and Ajay, developed 11 Instant Loan Apps and have been luring the innocent people into their trap.

The call centre Cubevo Technology which Cyberabad Police raided is set up by Skyline Innovations Technologies India Pvt Ltd. It has its ROC registered office at Gurgaon in New Delhi. Zixia, Umapati and Ajay are its directors. Zixia Zhang, a Chinese national and Umapati, a Delhi resident, are at large as of now. 

VC Sajjanar,Commissioner of Police, Cyberabad at press conference. Also seen Mrs Rohini, DCP Crime

The four arrested include Chinese National and Chief Operating Officer(COO) Yi Bai who is working as a Business Development Manager of Skyline Company; Satyapal Khyalia, a native of Rajasthan who helped Yi Bai set up new call centre TopFun Technologies Pvt. Ltd; another Rajasthan native Anirudh Malhotra who is sent to Hyderabad to manage a call centre, Best Shine Technologies Pvt Ltd and Murathoti Richie Hemanth Seth, a native of Kadapa district of Andhra Pradesh who is sent to manage call centre Cubevo Technologies.

All these six people have been operating Instant Loans at a higher rate of interest, harassing people, extracting unbelievable rates of interest and shaming defaulters.

The cyberabad police have so far registered 8 cases and investigating into the matter.

Police have shared the list of Instant Loan Applications with dubious credentials. They include Loan Gram, Cash Train, Cash Bus, AAA Cash, Super Cash, Mint Cash, Happy Cash, Loan Card, Repay One, Money Box and Money Box.

The list of call centres established by these fraudsters are Top fun Technologies Pvt. Ltd; Fasmate Technology Services Pvt Ltd both located at Gurgaon; Cubevo Technology Pvt Ltd and Best Shine Technology Pvt Ltd, both are being operated from Hyderabad.

It all started when police got a complaint from a person who googled lenders for his pressing financial needs. He downloaded the Instant Loan App and uploaded Aadhar and PAN card, self authenticated photo and 3 months bank statement as mandated. For a loan of Rs 2015 for 7 days, they deducted Rs 415 and disbursed Rs 1600/-. Soon after that, he received calls from different mobile numbers offering instant loans. On their persistent follow-up, he availed 1.20 lakh from 28 different instant loan apps. Even after paying Rs 2,00,000/- with interest as per their terms and conditions, he received abusive calls and threatening calls from their tele-callers. They blackmailed him with legal notices. Based on his complaint Police have registered a complaint Cr No. 1162/2020.

The investigations are on. National agencies are briefed accordingly. The police are also in touch with RBI. Enforcement Directorate people and others are in touch with Cyberabad Police.

Zixia Zhang with the help of his Singapore based company and the team has been operating their business for the past one year without any permissions neither from RBI, nor from District Collector who is authorized to grant licenses for money lending business locally. Hence, it is an illegal activity. We are confident of bringing culprits to the books and save the gullible and innocent people, said Mr VC Sajjsanar.

Meanwhile, Mr Sajjanar told people to be alert about such unscrupulous businesses. Don’t fall prey to unauthorized mobile apps, he cautioned them.

He cautioned people against loans being offered by unauthorised digital platforms, mobile applications promising a quick and hassle-free process. He advised the general public not to download any instant loan applications or apps. The Cyberabad Police have identified 116 Apps and wrote to Google to delete them.

According to their investigation team, they have also come to understanding that nearly 700 to 800 such instant loan apps seem to be existing. They are also looking into them. Mr Sajjanar has asked people not to get panic. They shouldn't hesitate to go to the police if they face any harassment from any such Apps in future. He gave a note of caution amid a major instant loan app scam being surfaced in the country with its multi-city network.

Mr. VC Sajjanar gave this advisory in the light of reports about individuals falling prey to growing number of unauthorised digital lending platforms/Mobile Apps or applications, all promising quicker, faster and hassle-free loans.

Legitimate loans can be offered by banks, non-banking financial companies registered with RBI and entities which are regulated by the state governments. People need to be vigilant more now than ever before. Even the media too must help people. The public must verify the background of entities which are offering easy, lucrative loans on various digital platforms, said Mr. VC Sajjanar.

We are looking deeper into their modus operandi and source of funding. We are confident of apprehending all the culprits involved in this fraud he said. And urged people to be doubly sure and verify before they download any new instant loan app or applications other than those who have licences from Government authorities.

He also advised people not to share personal and bank credentials to strangers. He advised people to go through the terms and conditions, especially those in smaller font. Verify their licenses, company background and credentials of the people behind such businesses.

Speaking about new year’s celebrations, Mr VC Sajjanar said that the Government of Telangana made it clear that no new celebrations, gatherings and parties are allowed. So accordingly no permissions are given to any events or celebrations. No mass gathering is allowed. No performances, no events are allowed. This includes parties organised in gated communities, colonies and local communities. They too are not allowed. He urged people to celebrate quietly and safely for the good of the society at large he said.

5 Ways to Combat Fraud During the Holidays

Black Friday and the holiday season will bring more fraud attempts  - here's how to protect yourself

SAN JOSE, Calif. , Nov. 25, 2020 /PRNewswire/ -- Highlights:

The pandemic is driving holiday shoppers online creating a more lucrative target for fraud and scams targeting consumers. FICO's Liz Lasher has five top tips for consumers to avoid fraud over the 2020 holiday shopping period. Find out what banks are doing to protect consumers from fraud these holidays. Start a conversation with Liz on twitter @LizFightsFraud about fraud or our tips. As we head into the holiday season, you've probably had enough stress in 2020. But wait––yet another wrench has been thrown in this challenging year! Fraud has spiked during the pandemic, with criminals upping their game as consumers swing into holiday shopping mode. Read on for five powerful fraud-fighting tips to help you break out of the 2020 doldrums and end the year with a little less stress!

More information: https://www.fico.com/blogs/holiday-fraud

Like COVID, Fraud Is Rampant

The fraud problem has gone viral - consumers have filed more than 130,000 reports of fraud to the FTC and have lost $182 million to these activities during the pandemic . UK Finance reports over £27 million was lost to fraud at online marketplaces and auction websites in the first half of 2020. Just as COVID has dramatically impacted our shopping habits, it's affected our financial safety, too.

Payment card fraud, identity theft , account takeover  and digital payment fraud  have all increased significantly since March 2020 . COVID-related scams are rampant  and rapidly evolving. When it comes to holiday shopping, criminals are primed to jump into the fray to perpetrate fraudulent transactions, hoping they'll pass as legitimate; a recent survey led by Pitney Bowes found that 57% of consumers plan to shop online more this year . Meanwhile, 45% of consumers say they already do more than half of their current shopping online–nearly three times pre-pandemic. With that in mind, there are actions you can take right now to protect yourself from fraud and identity theft.

It Pays to Protect Yourself

"When it comes to financial fraud, such as account takeover, banks are on your side," said Liz Lasher , vice president of Fraud, Financial Crime and Cyber Risk Portfolio Marketing at FICO. "However, prevention is critical, particularly when it comes to identity theft, because the clean-up can be quite difficult and messy , and recovering stolen funds  can be a tedious, months-long process.

"Credit card fraud is more quickly resolved, but you may still have to go through the hassle of having transactions declined and filing a fraud claim  with your bank or card provider. At the other end of the spectrum, scams, or as the industry calls it 'authorized push payment fraud'  can have traumatic, long-term effects. It occurs when you, the consumer, approve a transaction, and you are most often held liable for the payment. In this instance, banks will not always foot the bill for damages.

"To reduce your risk of being a victim of any of these crimes, here are my five top tips to protect yourself against fraud this holiday season."

Tip #1: Revisit Your Password Habits

We've all pretty aware of the concept of strong passwords, mixing lowercase letters, capitals, numbers and symbols. But let me challenge you change your thinking, because it turns out that long passwords are even more important than strong passwords. The length and strength of a password, combined, is the strongest deterrent to a hacker cracking your password with brute-force computing power.

It's also important is to use a unique password for each of your accounts, particularly important ones—not just bank and brokerage accounts, but PayPal, Gmail and Amazon, everything! I can't overemphasize the effectiveness – and elegant simplicity - of browse-based password managers that suggest randomized long, strong passwords, and manage them for you.

Tip #2: Take Advantage of Authentication Features

I highly recommend using any additional authentication capabilities offered by apps and websites you visit frequently; they're a second layer of protection to make sure you're really you. The easiest type to use is a one-time passcode, which can be texted or emailed to you.

Face biometrics are increasingly popular, too, particularly for banking and financial apps. If an app has a face biometrics capability (like Face ID on the iPhone), use it. You may run across someone who thinks you shouldn't use face authentication because then the government will have your picture and personal information. This was the subject of a recent meme , the punch line of which said, 'Wait until [this guy] finds out about driver licenses.' Very funny, but in all seriousness, face biometrics and voice biometric authentication are a growing part of a multi-prong approach to increasing the security around your accounts.

Tip #3: Use Trusted Payment Methods

New payment apps are cool, but be careful. Do your research, read the reviews, and check Google carefully to see if the app is a scam. If in doubt, use ApplePay, PayPal, or another payment app you know and trust.

If you're sending cash from your online or mobile banking app, and you need to send money to a new recipient, do a test transaction with a small amount of money and ask that person to confirm they got it. I did this the other day when I was paying someone to inspect my house for termites. It was a $100 inspection, but I was worried I'd type in the wrong phone number and send $100 to the wrong person. We did a $1 test transaction together to make sure I got his information correct.

Tip #4: Be Skeptical

It's the giving season—during a pandemic—which multiplies the opportunities for fraudsters to try to scam you. Although GoFundMe states  that "the overwhelming majority of fundraisers on our platform are safe and legitimate," scams do happen there  and many other places. Unfortunately, not every scam is identified and prosecuted; unless you personally know the person or family benefiting from a contribution, or can verify that the recipient's identity and need, think twice (hard) before you donate.

To protect yourself from charity and disaster fraud (such as relief funds that spring up after hurricanes and wildfires), make sure the donation website is legitimate. It's very easy for criminals to create lookalike websites that siphon off credit card and personal information, which can then be quickly used to run up fraudulent transactions. The FBI has a very useful tip sheet  to help you spot fake charity and disaster sites.

Tip #5: Monitor Your Credit Report

Everyone––and I mean everyone––needs to monitor their credit reports. Not just to stay informed about credit history, but also a proxy for early indication of fraud such as identity theft. If you have young children, or take care of your elderly members of your family, or don't expect needing credit yourself anytime soon, you can also consider freezing your credit. This will also freeze all of the accounts associated with your identity.

At the very least, periodically reviewing credit reports will help you find out if anything strange or unexpected is happening. Nipping identity theft or credit misuse in the bud could help you avoid losing a few dollars or a large sum of money, as well as well as having to rebuild your credit health.

Want to see what banks are doing to keep you safe? Check out this blog post on Out of Sight: How Banks Protect Consumers from Credit Card Fraud .

Have questions or comments on my fraud-fighting tips for this holiday season? Tweet at me on Twitter @LizFightsFraud .

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

Learn more at http://www.fico.com

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

Amazon Opens its Fraud Detector Services that Helps Businesses Identify Online Identity, Payment Frauds in Real Time using Machine Learning

Amazon Web Services Inc. (AWS), an Amazon.com company, announced the general availability of Amazon Fraud Detector, a fully managed service that makes it easy to quickly identify potentially fraudulent online activities like online payment and identity fraud.

Using machine learning under the hood and based on over 20 years of fraud detection expertise from Amazon, Amazon Fraud Detector automatically identifies potentially fraudulent activity in milliseconds—with no machine learning expertise required.

Essentially, Amazon Fraud Detector automates the complicated steps of creating machine learning models for fraud detection. Everything from data validation to model deployment can be done with no machine learning or coding experience required. The result is machine learning based fraud detection models that can be deployed in minutes instead of months.

Amazon Fraud Detector provides a fully managed service that uses machine learning for detecting potential fraud in real time (e.g. online payment and identity fraud, the creation of fake accounts, loyalty account and promotion code abuse, etc.), based on the same technology used by Amazon.com—with no machine learning experience required.

Amazon Fraud Detector is now available in parts of the US and other countries -- Ireland, Singapore, Sydney, with availability in additional regions -- expectedly India -- in the coming months.

With Amazon Fraud Detector, customers use their historical data of both fraudulent and legitimate transactions to build, train, and deploy machine learning models that provide real-time, low-latency fraud risk predictions. To get started, customers upload historical event data (e.g. transactions, account registrations, loyalty points redemptions, etc.) to Amazon Simple Storage Service (Amazon S3), where it is encrypted in transit and at rest and used to customize the model’s training. Customers only need to provide any two attributes associated with an event (e.g. logins, new account creation, etc.) and can optionally add other data (e.g. billing address or phone number). Based upon the type of fraud customers want to predict, Amazon Fraud Detector will pre-process the data, select an algorithm, and train a model.

https://youtu.be/MNSq2G3V8wM

Online Broker OctaFX Fights Fraud on the Forex Market

OctaFX is an international online broker who has been providing trading services worldwide over the last nine years. They have noticed a recent rise in the number of scammers who try to associate themselves with the company and defraud traders of their funds.

The fake websites are not that easy to pinpoint at a glance. Some of the fraudsters started acquiring security certificates and using .com as their top-level domain so that the potential traders would not notice anything suspicious when looking at the address bar.

One way traders can avoid being defrauded by OctaFX impersonators is by paying attention to the domain name itself. The broker regularly warns its clients about fake websites and social media accounts that use different variations of the OctaFX brand name. The company stresses that it only works under its official brand name.

The OctaFX clients should also pay attention to the payment processing. The broker only processes payments through the client's profile on the official website or the OctaFX Trading App and the OctaFX Copytrading App.

Fighting fraudsters on the Forex market is a complex task that requires effort from all parties involved. OctaFX is doing its best to take down fake websites and social media accounts. The team told us that it would be much harder without the trader community help. OctaFX is thankful to traders who diligently report fake websites and accounts that try to pass themselves off as the broker.

About OctaFX

OctaFX is a Forex broker providing online trading services worldwide since 2011. It offers a state-of-the-art trading experience to more than two million trading accounts. OctaFX has won more than 20 awards since its foundation, including the Best ECN Broker 2020 award from World Finance. The company is well-known for its social and charity activity. It also regularly conducts global and local promotion campaigns with valuable money and product prizes.

Nigeria's SEC Warns Against Blockchain Firm that Claims to End Poverty in Any Country in Less than 9 Mths

Securities and Exchange Commission (SEC), Nigeria has warned stakeholders and the investing public about the activities of an illegal blockchain operator - iBSmartify Nigeria, which is the promoters of a Blockchain known as iBledger (iBcashcryptocurrency) and InksNation.

In an announcement, SEC, said 0

The general public is hereby advised that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the Commission." In view of the above, the general public is hereby WARNED that any person dealing with the said entity and others in the same business in any manner whatsoever, does so at his/her own risk.

Based out of Badagry, Nigeria, iBSmartify (InksNation) claims to use Blockchain , Artificial Intelligence, Extended Reality and Quantum Computing for Humanitarian Good towards building a better world where humans live like Kings and Queen in an autonomously driven ecosystem of abundance.

On its website 'inksnation.io', the company also claims to have invented the World's First Philanthropic Blockchain (InksLedger) and the World's First Charitable Trust DAO (InksNation), which the company in questions claims to end poverty in any country in less than 9 months incentivising goodness, promoting love, unity, oneness, peace and equitable distribution of wealth.

Further the Nigenrian company claims that its native Reserve Coin called 'PinKoin' will pay every single Nigerian, African and Human being on earth including babies born everyday a minimum of N120,000 ($330) monthly for life as UCBI (Universal Child Basic Income).

In a circular dated June 26, 2020, the SEC pointed out that neither the promoters of iBSmartify Nigeria nor the illegal products they offer are registered or regulated by the commission.

The SEC keeps warning the investing public against dealing with fraudulent and unregistered investment schemes and capital market operators, especially those with bogus investment and unjustifiable return claims.

The commission, in 2019, clamped down on some Ponzi scheme operators by blocking their bank accounts and taking over the real estate properties linked to them.

Online Fraud in UK - Indian Man Among 5 Gangsters Jailed

An Indian national is among a gang of five men jailed by a UK court for a total of over 30 years for an online fraud conspiracy involving a 10-million pounds payment diversion scam.

Satish Kotinadhuni, 44, was arrested from his home in east London and charged in June last year with conspiracy to commit fraud and conspiracy to convert criminal property.

He was sentenced at Southwark Crown Court in London on Friday to five years for conspiracy to commit fraud by false representation and six years for conspiracy to convert criminal property, both sentences to run concurrently.

"Satish Kotinadhuni was a 'mule herder'. He would procure hundreds other people's bank accounts for use in the fraud," the Metropolitan Police said. "Such accounts were sourced from dishonest people who were prepared to 'sell on' their own bank accounts for a fee whilst knowing that they would be used for fraud," the Met said.

Officers based in the North West London Economic Crime Unit, which forms part of the Met's Specialist Crime Directorate, identified a total of 235 separate frauds, committed from 2014 to 2019, totalling GBP 9,218,522.76.

A number of victims were traced with the help of the UK's National Fraud Intelligence Bureau whose Action Fraud service allows both domestic and overseas victims to report fraud online.

"This has been a long trial due to the defendants' refusal to accept their guilt despite overwhelming evidence," said Detective Constable Chris Collins of the Met's Economic Crime.

"A common feature in this case was the use of mule bank accounts. I advise anyone conducting financial business by email to verify the bank account they are sending their money to by contacting the intended recipient by means other than email," Collins said.

"Furthermore, people should be aware that a genuine investment company would not use different private bank accounts in different names in a legitimate transaction," he added.

The main method employed by the gang was the use of Malware to steal the login credentials of email accounts belonging to businesses and private individuals worldwide.

This would allow the fraudsters to monitor the chosen email accounts for high value financial transactions. Having identified a legitimate financial transaction between two parties, email conversations were intercepted and spoof emails sent so that victims were duped into paying funds into UK based "mule" bank accounts, controlled by the fraudsters instead of their intended legitimate destination.

Another method involved conning victims out of thousands of pounds by selling investments in "Binary currency trading schemes" that did not exist.

Victims ranged from high profile individuals and organisations to private individuals who thought that they were paying money to their conveyancing solicitor during a property transaction.

In order for the fraud to operate, a ready supply of mule accounts were needed and a total of 100 mule accounts featured in the investigation, the Met said.

Olumuyiwa Ogunduyile, a 39-year-old Nigerian national and the so-called boss of the operation, was sentenced to six years for conspiracy to commit fraud by false representation and seven and a half years for conspiracy to convert criminal property, to run concurrently.

Two other Nigerian nationals and a German-born Ghanian were among the other gang members jailed for an average of six years each.