It was just last week ago, that the RBI underscored the importance of cyber security, and harped on the need to create a bulwark against frauds online.
Now, in a major development emerging from the Southern states of Andhra Pradesh and Telangana, Falcon Invoice Discounting has been accused of duping thousands of investors in the states.
The Hyderabad-based company, according to a report by Times of India, swindled many in these two states, bringing losses of multiple crores to the investors in these two states.
Falcon Invoice Discounting is a peer-to-peer (P2P) online invoice discounting platform.
What is Invoice Discounting?
Here, the invoice discounting platform is a virtual marketplace that allows businesses to sell their transaction document, i.e. invoices, to financiers in exchange for cash.
The process of invoice discounting is a short-term financing tool that can help businesses with cash flow.
This helps with cash flow as the company lends business or other entities the value of the raised invoices after deducting a small percentage.
The Allegations Against Falcon
The company, as per the report offered sky-high returns by converting unpaid invoices of businesses into cash advances. The company engaged with its investors through its mobile app.
The company even promised returns as high as 24 per cent on investments.
The company allegedly duped these investors after they shut their physical offices in Hyderabad's coveted HITEC City on February 10. Apart from Hyderabad, the company also has its offices in Dubai and the US.
Earlier, in the month of January, the company delayed its payments.
The company's seemingly unsafe website (as per the browser) continues to remain active.
What Action Has Been Taken?
The Cyberabad police have taken action in the matter. The management of the company, headed by Amardeep Kumar, has been charged with fraud and breach of trust in three criminal charges brought by Cyberabad police.
As per the report, as many as 20 individuals are under the radar in this case. Investigation into the matter has discovered crucial instruments like hard disks and other documents.
The authorities are also on the lookout for the accused, to prevent them from leaving India.
