In a recent crackdown on online investment fraud, police in Rajasthan’s Ajmer arrested a 19-year-old who allegedly cheated more than 200 people out of nearly Rs 42 lakh. Kashif Mirza, a student of Class 11 with a substantial following on social media, reportedly lured victims with promises of high returns on investments through a fake scheme.
Mirza, described by police as an “influencer” with a significant presence on Instagram, convinced people to invest by offering substantial profits within short timeframes. According to police, Mirza’s scheme promised Rs 1,39,999 in returns for a 13-week investment of Rs 99,999, a tactic aimed at attracting users looking for quick gains.
An initial payout was provided to some investors to create a sense of legitimacy and encourage word-of-mouth promotion, NDTV reported quoting the police. Mirza’s social media influence helped him amass a large number of participants in his fraudulent scheme before authorities caught wind of his activities.
ALSO READ: Man who sent death threat to SRK held in Chhattisgarh, says his phone was stolen
During the investigation, police seized a Hyundai Verna, a cash counting machine, phones, and laptops from the suspect. Mirza has been remanded to police custody for two days as further inquiries continue.
Protecting Against Investment Fraud
Investment scams like this highlight the importance of due diligence before committing funds. Experts advise potential investors to conduct thorough research on any individual or company promising unusually high returns. Fraudulent schemes often guarantee returns and lack transparency in their investment strategies, which should raise red flags for investors.
Authorities also stress the importance of verifying whether the investment firms or individuals are regulated by relevant financial authorities. Fraudulent schemes, especially on social media, often prey on investors looking for quick gains, making awareness and vigilance crucial for financial security.
