Mumbai Crime: Five men held in Rs 3.5 crore stock scam

The shares were allegedly illegally sold between May 25 and June 8

Cyber cops have arrested five men for allegedly stealing client data of a share trading firm and selling shares worth Rs 3.58 crore. The suspects, including two former employees of the Malad-based company, impersonated the firm's staff and persuaded three customers to share OTPs required for selling shares. The cyber cell of the north region is on the lookout for three more people, including one in the UK.

The shares were allegedly illegally sold between May 25 and June 8. The five, one of whom was picked from Gujarat, used the money to buy shares of another company.

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The gang used a cloning app to make calls to customers. Representation pic

The crime came to light when the three clients of Nirmal Bang Securities Pvt, with its address at Poddar Park, Malad East, got in touch with the company for the returns on their investments, said an officer from the north cyber unit.

The police said the gang first breached the mobile application of Nirmal Bang Securities and stole the contact details of its clients. It used cloning software to make calls giving the impression to the customers that they were being contacted by the company's WhatsApp number.

"The customers didn't suspect anything wrong as the [fake] number was familiar to them. Some of them also shared the details including OTPs sought by the fraudsters," said the officer.

As they began a probe, the cops suspected an insider's role. When they failed to get a lead after quizzing the staff, they focussed on former employees. "Technical analysis showed the involvement of two of them. Their questioning led us to three more people. We are looking for three more people including one in the UK who helped the others make calls using the cloning app," said the officer.

Another officer said they have frozen the investments of the suspects for now. The team comprising API Sandeep Pachangne worked under the guidance of DCP Hemrajsingh Rajput.

"They have been booked under the IPC and IT Act. The court has remanded them in police custody," said senior inspector Vijay Chandanshive of the north region cyber unit.

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No. of clients whose shares were illegally sold