Delhi Police’s cybercrime unit, the Intelligence Fusion and Strategic Operations (IFSO), has launched an investigation into payment aggregator platforms PhonePe and Easebuzz for their alleged involvement in a massive fraud scheme involving the Hibox mobile app. The scam, which reportedly defrauded nearly 30,000 people, enticed investors with promises of high returns through daily interest rates ranging from 1 to 5 percent. These rates, translating to 30 to 150 percent monthly returns, were deemed exceptionally high and raised red flags.
Hemant Tiwari, Deputy Commissioner of Police (DCP) of IFSO, stated that apps like PhonePe have not adhered to the Reserve Bank of India’s guidelines. The Hibox app, launched in February 2024, saw over 30,000 people invest money. While investors initially received high returns from February to June, the app withheld payments from July onwards, citing technical glitches, GST issues, and legal problems.
The investigation has expanded beyond the payment aggregators, with nearly 20 firms facing scrutiny for their role in laundering the ill-gotten gains. Notices have also been sent to several social media influencers who promoted the Hibox app, including Abhishek Malhan, Elvish Yadav, Lakshay Choudhary, and Purav Jha.
The Delhi Police has consolidated 127 complaints against the Hibox app and arrested Sivaram, the alleged kingpin of the operation. Authorities seized ₹18 crore from his four bank accounts. The alleged companies have reportedly vanished after closing their office in Noida, Uttar Pradesh.
This case highlights the vulnerabilities in online investment platforms and the potential for exploitation by unscrupulous actors. The investigation into the Hibox scam underscores the importance of due diligence and responsible investment practices, particularly when confronted with seemingly unrealistic promises of high returns.
