Rajasthan: Two Men Defraud Rs 4 Crore Using Phone Payment App in Jaipur, Arrested

Two men were arrested in Jaipur for cheating nearly Rs 4 crore through PhonePe payment app. The accused, who posed as customer service representatives for the company PhonePe, were provided with Point of Sale (POS) machines by the company. Police seized Rs 4 lakh, 70 debit and credit cards and half a dozen mobile phones from the accused.

The Cyber Police Station, which is investigating the case, reported that PhonePe filed a complaint on June 27. The complaint detailed that Rs 3.97 crore was fraudulently obtained using 964 cards over a period of six months. The fraud involved the misuse of the credit and debit card service provider Pay-Bank facility.

The complaint indicated that PhonePe compensates merchants when customer transactions fail to transfer money to the merchant's account. The accused exploited failed transactions on Phone-Pe's POS machines. When customers reported money deductions without successful payments, the accused contacted the credit and debit card service provider, pretending to resolve the issue. 

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The bank, based on their complaint, would deposit the money into Phone-Pe accounts linked to the accused. Instead of reimbursing the customers, the fraudsters withdrew the money for themselves, providing false assurances to the complainants.

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Upon realising the fraud, Phone-Pe lodged a formal complaint. The police arrested the two accused, who are from Dausa district, noting that they had used fake documents to join PhonePe. As soon as PhonePe detected the fraud, the accused ceased their activities. Police stated that further details are expected as the investigation proceeds.