Fintech Fraud Unveiled: How scammers exploited payment platforms in a massive online Investment Racket
The world of Fintech, known for making Financial Services accessible to millions, is facing a new challenge: fraudsters using trusted platforms to carry out scams. A recent bust in Pimpri-Chinchwad has uncovered a major online Investment Scam that used popular Payment Services like Airpay, Instant Pay, and Spicemoney to trick people into losing huge sums of money.
The Setup: Fake Financial Gurus lure victims
It all started with two Fraudsters, Arya Anand and Sethurathnam Ravi, who posed as Financial experts in WhatsApp Groups with innocent-sounding names like Wealth Knowledge Group. They promised high returns through a fake Trading App called Ad-bir Capable—an unregistered, fake platform. They convinced people to invest by transferring money to Bank accounts or UPI IDs, claiming these were linked to real, licensed Trading Services.
How Fintech Was Misused: A perfect cover for fraud
The scammers didn’t hack into Fintech Systems. Instead, they cleverly exploited the Legitimate Services provided by Fintech Platforms to create an illusion of trust. They used regular Bank Accounts and Merchant Services to move funds around, taking advantage of weak Know Your Customer (KYC) processes. The platforms, which were designed for fast and easy transactions, became the perfect cover for their illegal activities.
Airpay, Instant Pay, and other platforms processed these illicit payments. In one case, an Area Sales Manager at Airpay was found to have helped the fraudsters set up merchant accounts. While Airpay quickly suspended the individual, this incident highlights a critical weakness in the system—partner accountability.
The Scam’s Web: A complex network of fraud
The scammers used multiple Bank Accounts to hide the flow of money, making it difficult for victims to trace where their money went. Transactions were routed through accounts in IDBI Bank, AU Small Finance Bank, and Axis Bank. The money was then withdrawn in cash, further complicating the trail. One intermediary, a xerox shop owner in Mumbai, admitted to cashing out large sums of money for a fee. Another business owner from Panvel was found to have handled ₹80 lakh in withdrawals for the scammers.
The dark side of Fintech growth
India’s Fintech boom has brought Financial Services to millions, but this rapid growth has also opened the door for scams. Platforms designed to make Financial Transactions easier for people in remote areas are now being misused by criminals. The same speed and accessibility that make Fintech great for inclusion also make it vulnerable to fraud if proper security checks aren’t in place.
What’s alarming here is that the fraudsters didn’t need to break into any systems—they simply used them in ways they were never meant to be used. This exposes a major flaw in the system: weak oversight of partners at the frontline.
Should there be stricter regulations for fintech platforms that offer fast onboarding and easy access to financial services?
Trisha Kesarwani
Fintech Specialist
Asiatic In Corp
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