I-T to probe shell firms used to siphon off crores

VADODARA: Heat’s on the masterminds of money laundering scams as the income tax (I-T) department is set to probe shell firms created to launder crores of rupees siphoned through cyber frauds. Cybercrime sleuths have already made a few arrests too.
“Professional gangs created several shell firms to open bank accounts. The I-T department has asked the cybercrime cell to get details of such fictitious firms to investigate the financial links and how these firms helped launder huge money,” said a police official.
Once the cops provide details of such firms, the I-T sleuths will start a detailed investigation, he said.
Based on a TOI report on April 19 about such shell firms being created with identity cards of unsuspecting citizens, the I-T department swung into action to probe the issue.
According to the police, cyber frauds utilize identity documents of persons from humble backgrounds mainly doing menial jobs.
Fraudsters then create private firms in these people’s names as they are easy targets and will cause least trouble.
Once the company is registered legally, the accused create a current account in its name.
Dozens of such bank accounts are opened to launder money siphoned from victims lured with various investment schemes.
All the money is then deposited in one bank account and transferred to China after converting it into cryptocurrency.
The cybercrime investigators have tracked down several such bank accounts that are linked to one bank account started by the kingpins in Bangalore.
“We will also be writing to the enforcement directorate (ED) to investigate this scam,” the official added.