Rising Online Trading Fraud Targets Unemployed Youth in India.
Posted:
July 07, 2025
A troubling financial scam is sweeping across India, exploiting the desperation of unemployed youth to siphon off large sums of money. Disguised as online trading, this scheme not only defrauds individuals but also impacts government revenue, often involving illicit fund transfers through the hawala system. Recent police actions have begun to expose the complex layers of this multi-crore fraud, revealing a disturbing pattern of deception and potential insider involvement.
The Scam's Mechanics: Quick Cash Lure
The fraud starts with a simple bait: the promise of easy money for jobless youth. Fraudsters entice vulnerable individuals by offering between ₹10,000 to ₹15,000 (approximately $120-$180 USD) to open bank accounts. To build trust, they even take these young people on trips to tourist destinations like Nepal or Uttarakhand.
Once the accounts are opened and illicit funds begin to flow, the fraudsters quickly withdraw the money. This rapid movement has drawn the attention of central investigative agencies. Recently, the Delhi Police arrested two individuals in the Sehjnanand area, uncovering a fraud involving approximately ₹11 crore (about $1.3 million USD) transacted from 105 locations within just 30 days.
Cunning Strategies for Control
Fraudsters gain control over the newly opened bank accounts by completing the Know Your Customer (KYC) process using the legitimate Aadhaar and PAN cards of the account holders. They then download the bank’s online banking app onto their phones, log in using the account details, and replace the real account holder’s mobile number with a fake one. This gives them complete access to all transactions, allowing them to manage and drain the accounts remotely.
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