AdminIn Mumbai, 8,500 investors who were lured by an investment fraud app scam have been identified as victims after the police unveiled a scheme promising six‑month returns of 8% through fake forex and share trading platforms. The Economic Intelligence Unit (EOW) said the scam involved payments totalling more than Rs 14 crore, and the Enforcement Directorate (ED) at Surat seized a further 1.33 crore in cash and 18 lakhs of USDT—immediately raising alarms across the fintech community.
Background & Context
The growth of mobile trading apps has created a fertile ground for fraudulent operators, particularly for tech‑savvy investors seeking quick returns. With the COVID‑19 pandemic accelerating digital financial participation, more than one million Indians began exploring online investment platforms in 2023. Yet, the lack of stringent regulatory oversight in the Indian fintech space has left many users exposed. In this environment, the Ojasvi Foundation’s alleged app became a perfect vehicle for an investment fraud app scam, exploiting promises of 8% monthly returns and the trust of community networks.
Key Developments
On 29 November, the Mumbai City Police posted on X that the scheme involved a network of entities—Ojasvi Foundation, Ojasvi AI, WinsorFX (a Dubai‑based trading platform), and Nature Elements. The police also highlighted seminars organized in Mira Road to attract potential investors. According to an EOW officer, the trust’s seven trustees are under criminal charges, while more than 150 investors have approached authorities with a combined loss of Rs 14 crore.
- Seizures: The ED seized cash worth Rs 1.33 crore, illegal foreign currency valued at Rs 3 lakh, and digital assets amounting to an estimated Rs 6–7 crore.
- Digital evidence: The police uncovered records of illegal forex (hawala) transactions exceeding 18 lakhs of USDT.
- Entities involved: Ojasvi Foundation, Ojasvi AI, WinsorFX (Dubai), Nature Elements, FX Gurukul, Ojasvi Paradise, Bliss New and Al Chemist.
- Method: Investors were invited via word‑of‑mouth, instructed to download the app, and presented with simulated profits, pressuring them to deposit money into mule or personal accounts.
In the wake of the investigation, the EOW said it filed charges under multiple sections of the Banking Regulation Act, the Black Money (Recovery) Act, and the Banning of Unregulated Deposit Schemes (BUDS) Act. The ED, Surat, maintained that additional raids are underway in Delhi and Hyderabad to trace the flow of funds and to recover assets.
Impact Analysis
This scam’s impact cuts across several demographics, but the effect on international students and short‑term investors is particularly profound. Many such students, studying in India or acquiring Indian work visas, used the app to invest surplus funds, hoping to diversify their portfolios before repatriation to their home countries.
- Financial loss: $2 million lost by students and tech enthusiasts who believe in “AI‑powered” returns.
- Regulatory blind spots: The absence of RBI or SEBI registration exposed thousands to unlicensed platforms.
- Reputational harm: The scam tarnishes the image of India’s fintech sector in the eyes of global investors.
- Legal consequences: Current lawsuits could lead to confiscation of foreign assets and potential prison terms for trustees.
In an interview with a local brokerage, a senior analyst said, “These schemes exploit the trust that many students place in undisclosed algorithms, painting a misleading picture of guaranteed profits.” This sentiment has resonated across forums, with 4,732 users leaving comments in support of victims on the app’s former website.
Expert Insights & Tips
Financial regulators and industry experts are issuing joint advisories to curb the appeal of such investment fraud app scam platforms. Below are actionable steps to safeguard yourself:
1. Verify Regulatory Approval
– Always check if the platform is registered with the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI). SEBI’s website lists permitted investment schemes.
2. Scrutinise App Transparency
– Genuine apps provide clear red‑flag information: a full list of partners, disclosures of past performance, and third‑party audits. Ambitious returns of 8% monthly are improbably high; legitimate forex or equity investments rarely exceed 20% annualised returns.
3. Use Pen‑Testing Tools
– Software such as AppChecker can analyze file permissions and requests for sensitive data, allowing owners to detect fraudulent behavior more quickly.
4. Report to Authorities
– Immediately file a complaint with the local police’s Economic Offences Wing or with India’s Cyber Crime Reporting Portal. Associate every transaction with a receipt to strengthen evidence.
International students should also liaise with their university’s student accommodation office or study abroad office for additional support. Many institutions now offer financial counselling for all students exposed to digital investing platforms.
Looking Ahead
The ED and EOW are navigating a complex legal landscape as the investigation expands beyond Mumbai. “We intend to extend investigations to neighbouring states where ancillary accounts and payments were routed,” said a senior ED officer on record. The legal strategy includes filing for the seizure of all digital evidence, treatment under the Unlawful Activities (Prevention) Act, and cross-border cooperation with the UK’s Financial Conduct Authority to recover Digi‑USD amounts transferring the funds overseas.
From a policy perspective, the Indian government is expected to strengthen fintech regulations. The cabinet has already announced plans to update the “Financial Technology and Services Act” to include mandatory RBI registration for all high‑risk investment apps. In addition, an independent FinTech Authority is scheduled to take operational control in 2026, tasked with continuous audits of investor‑facing platforms.
Within the next twelve months, students and short‑term investors should anticipate more rigorous KYC requirements, tighter limits on withdrawals, and enhanced real‑time monitoring of unusual outgoing money flows. Universities are also expected to integrate financial literacy modules into orientation programmes, stressing the importance of due‑diligence when dealing with online investment opportunities.
In the meantime, if you suspect you have been targeted by an investment fraud app scam, collect all transaction records, contact the local EOW or ED, and seek legal advice before anything else.
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