Mumbai's South Cyber Police have arrested a 33-year-old woman who works at a share trading firm, accusing her of breaking into a 76-year-old businessperson's demat account and selling his shares worth about Rs 4.58 crore to buy penny stocks without his consent.
Police froze shares worth more than Rs 2.86 crore, Mumbai Police said on Thursday.
How The Fraud Allegedly Worked
The accused has been named as Pushpa Bind. According to the police account reported by Hindustan Times, she contacted the businessperson, who is based in Gamdevi, on 10 August and told him that certain shares would be profitable.
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Police allege she then got hold of his demat account credentials and password.
To trade in the account, she needed the one-time passwords (OTPs) the system sent to the businessperson's registered email address. Bajrang Bansode, deputy commissioner of police (Cyber), said the investigation found Bind allegedly obtained a SIM card linked to the mobile number tied to that email account.
Police say she used it to receive the OTPs and complete unauthorised transactions. Shares were sold from his portfolio and replaced with penny stocks, low-priced shares that are typically thinly traded.
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Discovery And Police Action
The businessperson found the discrepancy on 11 August when he checked his account. Bansode said police managed to stop the sale of shares worth Rs 2.86 crore.
Mumbai Police said the freeze covered shares worth more than that amount. The police have not said how the remaining value of the shares was dealt with.
Police allege that Bind received a 30% commission on the transactions. They have not said who paid it.
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Earlier Cases And Ongoing Probe
Mumbai Police said the accused has previous criminal cases registered against her. Police said she was earlier arrested by the Santacruz and Azad Maidan police in other cases. Officials added that she had previously worked with well-known investment firms in the city.
The South Cyber police are now looking into whether anyone else was involved.
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