A suspected cross-border fraud scheme is drawing Indians living in the United States into illegal banking transactions by promising easy money through international transfers to India.
The scheme allegedly involves participants sending authorised remittances to bank accounts belonging to relatives, friends or acquaintances in India before falsely reporting the transactions to US banks as unauthorised. If their claims are accepted, the senders receive refunds even though the transferred money remains in the Indian accounts.
According to a report by The 420, the operation is being promoted through community WhatsApp groups, with organisers reportedly charging participants a 30% commission for facilitating the arrangement.
Young Indians, particularly those below 30 living in Virginia and Texas, are reportedly among those being approached. Financial difficulties, job losses and uncertainty surrounding visa status are believed to be making some individuals more susceptible to such offers.
However, participants could face serious legal consequences. Deliberately filing false claims over authorised bank transfers could attract prosecution under US bank-fraud laws, with potential penalties of up to 30 years in prison and fines of up to $1 million, depending on the offence.
Recipients in India could also come under investigation if they knowingly participate in the alleged fraud. Section 318(4) of the Bharatiya Nyaya Sanhita (BNS), relating to cheating and dishonest inducement involving the delivery of property, may apply where its legal requirements are met. Suspicious bank accounts could also be frozen during investigations.
Nagarjuna Malempati, founder and CEO of Seattle-based fintech company Xpat Money, warned that such arrangements could jeopardise employment, visa status and future financial prospects.
Families receiving unexplained overseas transfers have been advised to verify their legitimacy. Suspected cyber fraud can be reported through helpline 1930 or the National Cyber Crime Reporting Portal.
