Hibox App Scam: Thousands of Indians Cheated

October 29, 2024

The Hibox application scam has resulted in financial losses for many Indians, estimated at Rs 1,000 crore. This scam involved the promotion of a mobile app that promised high returns on investments. Popular social media influencers and YouTubers played a key role in promoting this app. Investigations are ongoing, led by the Intelligence Fusion and Strategic Operations (IFSO) unit of the Delhi Police.

What is the Hibox Scam?

The Hibox scam lured victims into investing money through an app. The promise was simple: guaranteed returns of 1 to 5 per cent daily. This equated to monthly returns of 30 to 90 per cent. Early investors received returns, which encouraged more people to invest. Eventually, the app stopped disbursing funds, and the operators vanished.

How Did the Scam Operate?

The scheme relied heavily on social media for promotion. Influencers like Saurav Joshi and Abhishek Malhan convinced people to invest. Many victims decided to invest after seeing these endorsements. Once the funds stopped, the operators disappeared, leaving thousands without their investments.

Timeline of Events

The scam first came to light on August 16, 2024, when 29 complaints were filed with the IFSO unit. Victims reported similar experiences, leading to an FIR being registered on August 20. Further investigations revealed additional complaints across various districts in Delhi, all following the same pattern.

Investigation Findings

The investigation uncovered that payment gateways like Easebuzz and PhonePe were used to facilitate transactions. Analysis of these transactions led to the identification of four accounts linked to the scam. One individual, J Sivaram, was arrested as a result of these findings. Approximately Rs 18 crore was traced to accounts registered under his company, Sutrulla Xpress Private Limited.

Current Status of the Investigation

A look-out circular has been issued for the directors of Hibox, who are currently believed to be abroad. The role of Easebuzz and PhonePe in the scam is under scrutiny. Investigators are also looking into the involvement of their employees. Social media influencers who promoted the app have been summoned for questioning.

Impact on Victims

Over 30,000 individuals invested their savings, believing in the promised returns. Many are now left in financial distress. The police have received hundreds of complaints, which are being systematically investigated. Victims are encouraged to report their experiences to aid the investigation.

Legal Proceedings

The police are compiling evidence from various complaints to build a comprehensive case. FIRs from different districts have been clubbed together to streamline the investigation process. The authorities are working to ensure that those responsible are brought to justice.

Awareness and Prevention

This incident marks the need for greater awareness about investment scams. Individuals should exercise caution when approached with offers of high returns. It is essential to verify the legitimacy of investment platforms and their endorsements before committing funds.

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