How a Kerala businessman lost $3.1m in one of the state’s largest cyber scams

Dubai: A 49-year-old businessman from Elamkulam in Kochi, has been cheated of ₹247.6 million (about $3 million) in what is being described as one of Kerala’s biggest online trading frauds, Manorama News reported.

According to the complaint, the victim — who owns a pharmaceutical company — was duped between March 2023 and August 2025 by a man identified as Daniel.

Police said the accused lured him with promises of high returns through the website wwwl.capitalix.com, maintaining contact via phone calls and Telegram under the handle @capitalix_bot.

Trusting the scheme, the businessman transferred the money in multiple instalments to several bank accounts after seeing inflated ‘returns’ displayed on the fake trading portal. The fraud came to light when he tried to withdraw his funds but was denied access.

Investigators said the businessman was tricked over four months through a fake trading application, which he had unknowingly installed two years ago. Despite years of trading experience, he trusted the platform after it displayed double profits on his early deposits.

The gang built his confidence by showing inflated returns, leading him to transfer more funds through multiple accounts. The scam came to light when he tried to withdraw his investments, only to face repeated excuses and delays.

The fraudsters first made contact through Telegram, convincing him that he could buy high-value company shares for smaller sums with assured profits. Each time he deposited money, the “profits” were shown to double, until he eventually discovered the app was fake.

The Kochi City Cyber Police registered an FIR on Monday under sections 318(4) (cheating) and 316(2) (criminal breach of trust) of the Bharatiya Nyaya Sanhita. Investigators are now tracking the money trail to identify where the funds were routed.

On Friday, the businessman filed a formal complaint. The Cyber Cell traced the fraudulent app to the control of a foreign national. Since the embezzled amount is significant, the case will be handed over to the Crime Branch’s Financial Crimes Investigation Division with the support of cyber experts.

The Indian Cyber Crime Coordination Centre was the first to flag anomalies before passing the case to the Thiruvananthapuram Cyber Operations Headquarters. A case was registered, and officials are now working to stop further fund diversions.

Investigators believe the operation was run by an international syndicate. The Cyber Cell is collaborating with global agencies to map the digital money trail and block further transactions.

While the ₹247.6 million Kochi scam has drawn major attention, similar cases have surfaced in Thiruvananthapuram in recent months:

Experts warn that such incidents reflect a surge in sophisticated online frauds across Kerala. Fraudulent apps, social media traps, and impersonation scams are increasingly targeting even experienced investors.

“Frauds of this scale highlight the need for stronger oversight and awareness,” a senior cybercrime investigator said.

The Kochi case, involving nearly ₹2.5 billion, underscores the urgent need for tighter cyber vigilance and greater cross-border cooperation in financial crime prevention.Kerala scam