A significant number of Indians are reported to have lost around ₹1,000 crore due to a scam involving the Hibox application, which promised high returns on investments. The app gained traction through endorsements from popular social media influencers, including YouTuber Elvish Yadav and comedian Bharti Singh, both of whom have now been summoned by the Delhi Police.
How the Scam Operated
The modus operandi of the Hibox scam was classic and effective. Victims were lured into “investing” through the app, which initially delivered on its promise of high returns. Early investors received their promised amounts, which encouraged more individuals to join. However, the payouts ceased in July 2024, with the app’s operators disappearing and citing various issues such as technical glitches, legal troubles, and GST complications.
- Initial Appeal: The app attracted over 30,000 users by offering returns of 1% to 5% daily, which translated to 30% to 90% monthly returns.
- Withdrawal of Funds: As complaints began to emerge, it was clear that the app had stopped disbursing funds, leading to the realization of the scam.
Emergence of the Scam
The scam came to light when the Intelligence Fusion and Strategic Operations (IFSO) unit received multiple complaints. Victims reported that their investment decisions were heavily influenced by the endorsements from social media personalities, including Abhishek Malhan (alias Fukra Insaan), Elvish Yadav, Bharti Singh, and Harsh Limbachiya.
Investigation Overview
The investigation has focused on tracing the financial transactions related to the scam. Key findings include:
- Payment Gateways: The payment platforms Easebuzz and PhonePe were used to facilitate transactions. An analysis led investigators to uncover four bank accounts used to siphon off funds.
- Arrests: One accused, J. Sivaram, identified as the mastermind, was arrested after the investigation revealed that ₹18 crore had been funneled into accounts linked to him and his company, Sutrulla Xpress Private Limited.
Current Status
A look-out circular has been issued for the directors of Hibox, who are currently believed to be abroad. The investigation continues, with the involvement of Easebuzz and PhonePe employees also being scrutinized.
Summary
The Hibox application scam underscores the risks associated with high-return investment schemes, especially those promoted by influencers. As the investigation unfolds, it serves as a cautionary tale about the importance of due diligence in financial investments, particularly in the digital age.