- Thousands of Indian investors lose nearly $100 million in a Ponzi scheme.
- Falcon Invoice Discounting promised returns of up to 22%, falsely linking to Amazon and Britannia.
- Over 7,000 investors were deceived; half of the funds have yet to be returned.
- Authorities arrest two individuals, but the main accused remains at large.
- India faces a surge in fraudulent investment schemes targeting the public.
Thousands of investors across India are trying to recover nearly $100 million after falling for a Ponzi scheme. The scheme, called Falcon Invoice Discounting, promised high returns by claiming to have connections with big companies like Amazon and Britannia.
Since launching in 2021, Falcon raised about 17 billion rupees ($196 million) from over 7,000 investors. But only half of the funds have been repaid, leaving many victims in financial trouble.
The scheme seemed legitimate, offering up to 22% returns. Falcon falsely claimed ties to trusted brands, convincing investors to trust them. The company operated through an app and website, saying the money would be used for invoice discounting services for major corporations.
Victims Speak Out: A Desperate Situation
One of the victims, Ankit Bihani, a New Delhi-based jeweler, met with 50 other investors last week to discuss how they could recover their collective losses of 500 million rupees. “Most of them got to know about the investing platform through social media and invested in it,” Bihani explained.
Other victims, like Roopesh Chauhan, a tech employee, are equally distressed. “It is my hard-earned money. We don’t know when and how will we get it back,” Chauhan said. S. Smriti, an assistant professor, lost over 3 million rupees in the scheme and has since reached out to the police for help. “The money was all our savings,” Smriti added.
The Rise of Fraudulent Investment Schemes in India
The Falcon Invoice Discounting Ponzi scheme is just one example of a growing problem in India. Recently, fraudulent investment schemes have become more common. They often rely on fake apps, websites, and call centers to deceive people. Authorities are struggling to keep up with the rising number of scams that prey on trusting individuals.
According to Strategy India, they launched over 400 new multi-level marketing pyramid schemes in 2023. These schemes often target lower-income groups by offering quick returns. They thrive in the unregulated digital space, which makes it harder for authorities to track them and stop their operations.
Despite efforts by Indian authorities, Ponzi schemes continue to spread. The Central Bureau of Investigation (CBI) has filed cases against more than 130 firms since 2019. However, new fraudulent schemes keep appearing faster than regulators can deal with them. The authorities are fighting a losing battle against these scams.
The Enforcement Directorate (ED) is investigating money laundering linked to Ponzi schemes. These schemes complicate things, making them hard to dismantle. As digital transactions grow, fraudsters are finding new ways to exploit the system, and the problem is only getting worse.