The Hibox application scam, one of the largest investment frauds in recent times, has left thousands of Indians grappling with financial losses amounting to an estimated Rs 1,000 crore. Promising lucrative returns, the scam was amplified by endorsements from prominent social media influencers and YouTubers, raising critical questions about accountability in digital promotions. The investigation is currently spearheaded by the Intelligence Fusion and Strategic Operations (IFSO) unit of the Delhi Police.
How the Hibox Scam Operated
The scam revolved around a mobile application that promised guaranteed daily returns of 1 to 5 per cent, translating to monthly profits of 30 to 90 per cent. Initially, early investors received returns, creating a false sense of trust that lured thousands more into investing. The app, however, abruptly ceased disbursing funds, and the operators vanished without a trace.
Social Media’s Role: The scheme relied heavily on influencers, including prominent figures such as Saurav Joshi and Abhishek Malhan, to promote the app. Their endorsements encouraged a significant number of victims to invest, only to face devastating financial losses when the scam unraveled.
Timeline of Events
- August 16, 2024: The scam surfaced when the IFSO unit received 29 complaints from victims, all detailing similar fraudulent patterns.
- August 20, 2024: An FIR was registered after the reports revealed a widespread network of complaints across Delhi.
Investigation Unfolds
The investigation revealed the scam’s sophisticated operations involving digital payment gateways such as Easebuzz and PhonePe. The funds were traced to four accounts, with Rs 18 crore linked to Sutrulla Xpress Private Limited, a company under the ownership of arrested suspect J Sivaram.
Further probes have led to the issuance of a look-out circular for Hibox’s directors, who are reportedly based abroad. The involvement of Easebuzz and PhonePe, along with their employees, is being closely scrutinized. Social media influencers who endorsed the app have been summoned for questioning, adding a new dimension to the case.
The Impact on Victims
The scam has left over 30,000 individuals in financial ruin, with many having invested their life savings based on the app’s promises. Hundreds of complaints have poured in from across the country, highlighting the devastating impact of this fraudulent operation.
Legal Proceedings
Authorities are consolidating FIRs from different districts to streamline the investigation. Evidence is being meticulously compiled to build a watertight case. The Delhi Police aims to ensure swift justice for the victims while pursuing the perpetrators, both domestically and internationally.
Lessons and Prevention
The Hibox scam underscores the urgent need for vigilance in the digital investment landscape. Offers of unusually high returns should always be approached with skepticism. Verifying the credibility of platforms and endorsements is paramount before making financial commitments.
This case also highlights the necessity for stricter regulations around social media endorsements, as well as greater public awareness of the risks associated with fraudulent investment schemes. As investigations continue, the hope remains that justice will be served and that such scams can be prevented in the future.
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