Five-member interstate gang busted for franchise frauds

Hyderabad: A five-member interstate gang, involved in duping people on the pretext of setting up franchises of reputed establishments ranging from food chains to medical deliveries, was busted by the Cyberabad cybercrime sleuths.

In one such instance, a Hyderabad resident was cheated of Rs 94,95,538 on the pretext of setting up a KFC franchise at Bachupally.

The police said that the gang comprised two women and three men, who used to operate from Bihar and Uttar Pradesh, by collecting details of individuals seeking dealerships through fake websites run by them.

In the Hyderabad case as well, the gang set up a fake KFC website and collected money on the pretext of franchise fees, agreement fees, NOC, fees for interior, woodwork infrastructure and set-up, the police said.

The masterminds, identified as Rakesh Kumar alias Aditya Singh and his wife, Sarita, worked out of a rented office space in Noida of Uttar Pradesh. The duo hired Mohammed Khalid to develop websites, Gagan alias Pankaj for creating fake KYC websites and running advertisements, and Roshini Singh Goutam alias Arpitha Singh to trap victims through tele-calling. Another gang member, Yugender, used to run ads through SEO.

The police said that they developed fake websites for several renowned brands, including IFFCO, ITS, Tata 1MG, Herbal Ayurveda and Jockey. They then posted their ads and fake website links through Google, Facebook and YouTube.

In the Hyderabad case, they allegedly created 32 fake KFC websites to trap the victim.

To gain the trust of their victims, they also posted a Maharashtra-based landline number, using virtual apps, to contact them, the police said.

The police seized seven mobile phones, three labels, LED projectors, a cheque book and a database of fake websites.

Following their arrest, Cyberabad police commissioner Stephen Raveendra advised citizens to verify the authenticity of websites by visiting their corporate office and to check the original name and IFSC code of bank accounts by approaching the banks concerned.

“A legitimate company will not have its customers pay money for official purposes into personal accounts. Citizens are also advised to learn the process of establishing franchises. Do not make transactions before verifying legitimacy of the deal,” he said.