‘Multi-level marketing’ ploy used to open bank accounts

Vadodara: Rope in people to open bank accounts in their names and earn a hefty commission!
The gangs engaged in cyber fraud have come up with a ploy similar to multi-level marketing (MLM) to open a number of bank accounts to move the fraudulent money. The Vadodara police bumped into this new tactic recently while investigating a loan app fraud complaint filed by a citizen.
Investigators said that hundreds of bank accounts operated by the cyber frauds opened using the MLM scheme were active in the state. “One of the key requirements to execute cyber frauds is opening a bank account. The scammers need bank accounts to deposit and transfer the money they siphon from the victims. But they have to ensure that the accounts aren’t in their names. So, these gangs lure people with money to open bank accounts in their own names,” said Hardik Makadia, ACP (cybercrime), Vadodara.
The conmen offer a monthly fee to the person who opens a bank account using his own identity documents. But the account is operated by the conmen for moving the fraud money. “These gangs need many bank accounts to escape the attention of the authorities and to ensure that the cops don’t trace them. So, they floated the MLM type scheme. The person, whose account they are already using, is asked to rope in five more persons who can open bank accounts and give control to the cyber frauds,” Makadia told TOI.
Those bringing in new ‘customers’ get a good commission apart from their monthly fees. “This scheme has taken off quite well for the fraudsters as they now have hundreds of bank accounts at their disposal. Crores of rupees was transferred between the accounts within days. With so many bank accounts in play, it becomes difficult for cops to trace the actual scammers,” a police official said.
In most cases, people in whose name the bank accounts were opened, have no idea that their accounts were used for transacting money siphoned through cybercrimes. “We follow the money trail and track the accounts used for moving the money siphoned from the victims. But when we reach the account owner, all we get is a person who opened the accounts to earn some commission from the fraudsters,” the police added.
“Such bank accounts operated by unknown scammers can be dangerous as the money moved through them can be used for any purpose,” Makadia said.