17-07-2025
Crypto scam: Fake investment app swindles hundreds in Uttara Kannada
Karwar: A sophisticated online investment scam has surfaced in Uttara Kannada district of Karnataka, where hundreds of residents have reportedly fallen victim to a fake mobile application named 'MM Equity' or 'Master Money'. The app, which falsely promised substantial returns through investments in cryptocurrency, crude oil, and gold, has allegedly duped investors of crores of rupees.
The scheme came to light after reports emerged from Dandeli taluk, where at least 279 individuals are suspected to have lost their savings. Alarmingly, despite the scale of the fraud, not a single victim has formally lodged a police complaint, prompting concern among law enforcement agencies.
Police say the perpetrators created WhatsApp groups to lure victims and encouraged micro-investments starting from Rs6,000 up to Rs1 lakh or more. The app's interface mimicked genuine stock trading platforms but lacked any approval from India's financial regulators, including the SEBI and RBI. It bypassed safeguards such as demat accounts and UPI restrictions by using terms like 'Recharge' instead of 'Investment,' misleading users into believing they were paying for services rather than making risky financial transactions.
Early investors were shown small gains to build trust, but once larger amounts were invested, the app developers severed communication. The app continued functioning even on weekends—unlike legitimate Indian stock exchanges—and displayed fake products under names resembling NSE and BSE listings.
Dandeli Deputy SP Shivananda Madarkhandi told reporters that authorities are aware of widespread financial loss, but are yet to gather complete data due to victims' reluctance. The district police have now launched a cyber probe and have cautioned the public not to download the suspicious app.
Officials also warned that such apps may collect personal data in addition to stealing funds, and urged the public to remain alert and report any fraudulent schemes. Local community leaders echoed the appeal, asking victims to come
forward so that legal action can be initiated.
