PhonePe and Easebuzz Under Investigation for ₹500 Crore Investment Scam Tied to Hibox App

The cyber security cell of the Delhi Police, known as the Intelligence Fusion and Strategic Operations (IFSO) unit, has initiated an investigation into payment aggregators PhonePe and Easebuzz for their suspected negligence in opening merchant accounts associated with a ₹500 crore investment scam. This scam, which affected over 30,000 victims, centred around the Hibox mobile application, which deceptively promised high returns with daily interest rates ranging from 1% to 5%, as reported by the IFSO unit.

The investigation is examining whether these platforms violated Reserve Bank of India (RBI) guidelines when establishing virtual merchant accounts or if they had any active involvement in the scam. “Apps like PhonePe and others have not adhered to the RBI guidelines while opening virtual merchant accounts. We are investigating whether this oversight was accidental or if they were complicit,” stated Hemant Tiwari, Deputy Commissioner of Police for IFSO.

The IFSO, which specialises in cybercrime investigations in collaboration with other agencies, has not ruled out the potential involvement of employees from these payment platforms. The investigation is ongoing, and no formal responses have been received from PhonePe or Easebuzz at the time of reporting.

In addition to these platforms, approximately 20 other companies are under investigation for allegedly laundering money linked to the scam. Tiwari noted that these firms are likely to be referred to the Enforcement Directorate for further scrutiny.

The scam gained momentum through endorsements by well-known social media influencers and YouTubers. The IFSO has issued notices to influencers like Abhishek Malhan, Elvish Yadav, Lakshay Choudhary, and Purav Jha, requesting their cooperation in the investigation. “Many victims were lured in by the promotion of the app by popular social media figures and YouTubers,” the IFSO commented.

The Delhi Police have compiled over 127 complaints related to the Hibox app and have apprehended the primary suspect in the case. To date, ₹18 crore has been recovered from four bank accounts associated with the scam, with further investigations anticipated to reveal more hidden funds.