Delhi Police have arrested five people for allegedly operating a nationwide cyberfraud network that used a reward-based mobile application to circulate fraudulent SMS messages, resulting in losses exceeding Rs 10 crore. The racket has been linked to 544 complaints across the country.
The investigation began last year after a Delhi resident reported losing Rs 2.20 lakh through an unauthorised credit card transaction. The victim had received a message containing a link claiming to facilitate traffic challan payments. Police traced the mobile number used to send the SMS to a phone containing a suspicious application downloaded through a WhatsApp group.
Investigators found that the app offered small cash rewards in exchange for redeeming points. However, during each redemption, the phone screen reportedly remained locked for nearly 30 seconds, allowing the application to automatically send nine to 12 SMS messages containing malicious links. These messages posed as traffic challan notices, delivery verification requests and reward notifications. Users received Rs 1-3 per redemption, allegedly without knowing their devices were being misused.
Police also uncovered a financial trail involving Shree Balaji Enterprises, whose bank account reportedly processed nearly Rs 2 crore through small transactions involving over 41,000 users in just three days. The network also allegedly operated an account with the National Bank of Kuwait.
The arrested accused include Moti Singh Baghela, Harshpal, Vicky, Vishal Das Vaishnav and Barjesh Kumar, apprehended from Mumbai, Lucknow, Delhi, Rajasthan and Punjab.
During the operation, police seized 15 digital devices, 59 debit cards, 52 passbooks and cheque books, 14 company stamps, five POS machines, eight QR-code scanners, a car and a gold chain. Further investigation is underway.
