One of the newest scams in the digital mode is the HIBox app scam, which has emerged as one of the biggest scams in India involving thousands of people. Yes, this is the same app in which people can buy mystery boxes and according to the app and many influencers, you will never lose anything. You can win a PS5 for Rs 300 and an iPhone for Rs 2000. And if something comes in a box that you do not need, then you can sell it with a profit of 1-5%. According to estimates, this scam is worth more than Rs 100 crore, highlighting the growing dangers of unregulated online investment platforms. The app is said to have been promoted in several videos by popular YouTubers and celebrities like Elvish Yadav and Rhea Chakraborty, which lured unsuspecting users by promising high returns. We know in detail about this scam, the way it was carried out, its effects and what can be learned from it.
What is the HIBox App Scam?
Earlier this year, in February 2024, the HIBox app introduced itself as a stock trading and investment application, promising users good returns from their investments. The amount to be invested ranged from Rs 300 to Rs 1 lakh, with daily returns promised between 1% and 5%, which is equivalent to 30%-90% monthly returns. Here investment means buying their mystery box.
To win the trust of the people on the app, first of all, it fulfilled its promise, returning the earnings on time to win the trust of the investors. However, later when the scheme matured, users faced withdrawal problems, the platform claimed these to be technical glitches, GST issues or legal problems. By July 2024, the scam came to light, leaving more than 30,000 victims trapped and falling prey to this scam.
How Did the Scheme Operate?
The HIBox scam was a very well-planned operation to exploit the trust of the investors. In itself, it presented an attractive proposition: invest small to big sums starting from Rs 300 up to Rs 1 lakh and get guaranteed daily returns between 1% to 5%, that is 30% to 90% monthly profits. This promise of high returns with minimal hassle attracted thousands.
In an effort to attract investors, the application promoted the following unique feature: the users could buy "boxes" that contained virtual goods. These goods, seemingly valuable, in the real world had no value whatsoever and could be sold only inside the scope of the app's ecosystem. Thus, it created the cycle of reinvestments, because users would maximize their profit by putting more funds into the platform. A significant portion of the success has been due to endorsements from popular YouTubers and celebrities, including Elvish Yadav and Bharti Singh, who even endorsed the app on their channels, creating an indirect belief that it was genuine.
The app started promising returns to attract users, though all such payments were abruptly stopped in July 2024. The operators cited technical issues, legal problems, and GST-related issues to placate users. Behind the curtains, their creators had withdrawn funds and closed down shop, vanishing without a further trace. The fraudulent nature of the scheme emerged as the plan unraveled; this was not an investment platform but a well-planned fraud targeting unsuspecting users. The closure of the application left more than 30,000 investors stranded, exposing the sheer scale of the operation.
Victims’ Accounts and Impact
Stories of Loss
One of the victims, Virendra Kumar from Gokulpuri, shared his harrowing experience. He and his sons invested Rs 3 lakhs into the platform, purchasing several boxes. He ended up getting no tangible goods or returns, resulting in significant financial distress.
Massive Financial Impact
Over Rs 100 crores is the estimated scam value, but experts believe the figure could rise as more victims come forward.
Police investigations have uncovered that the funds were funneled into accounts linked to Sutrulla Xpress Private Limited, owned by Sivaram, a key conspirator.
Legal and Investigative Actions
The Delhi Police Special Cell has launched a big inquiry into the HIBox scam, which is part of the growing menace of online financial fraud. The FIR was under Section 318(4) of the Bhartiya Nyay Sanhita, and the case kept accelerating as the number of the total complainants rose from across the country. More than 500 complaints have been lodged so far, and the police estimate that the scam may amount to more than Rs 100 crores.
Key Arrests and Seizures
One of the masterminds behind the scam, Sivaram, was arrested in Chennai by the IFSO Unit. It has been alleged against Sivaram that he was the director of Sutrulla Xpress Private Limited. Investigation has revealed that the money of the victims was diverted into four accounts under this company. Police have seized Rs 18 crores from these accounts, which is a relief to the victims.
Role of Payment Gateways
It is doing a close scrutiny of the role of payment gateways, including Easebuzz and PhonePe, through which the fraudsters processed payments. It is alleged that these platforms have violated RBI verification norms while taking on board the HIBox merchant accounts. Now, Easebuzz claims compliance with the laws and also alleges that the suspicious account was blocked way back in July 2024 and was reported to the FIU. Nevertheless, their role in facilitating this scam is under the scanner.
Summons to Social Media Influencers
A primary focus of the inquiry is the part played by social media influencers and YouTubers who promoted the app. Influencers like Elvish Yadav, Bharti Singh, and Saurav Joshi have been called for questioning. These influencers allegedly received lakhs for each endorsement of this app. It is alleged that more than 127 complaints have specifically stated that these influencers have misled people into investing in this phoney platform.
Money Laundering Links
Investigators found 20 more companies, which are apparently associated with the HIBox scam, and have laundered money through different routes. Those operators vanished from the scene after shutting down offices at Noida and other places, adding to the complexity of the case.
Nationwide Action
The huge scale of the scam has made authorities increase efforts to trace all culprits. Law enforcement officials are working to discover more fraudulent entities connected with HIBox while providing justice to victims as well.
Further investigation into the case would emphasize the call for stronger regulations and accountability-especially from digital finance. In summary, this case is a landmark, as it has set precedent in bringing both the perpetrators of scam activities and their facilitators-influencers and the payment platforms-involved to justice.
Lessons Learned
The HIBox app scam shows the dangers of some online schemes and the unbridled reach of digital platforms. The fraudulent scheme highlights several important points for both individuals and authorities:
Beware of Unrealistic Returns
One of the most significant warning signs in the HIBox scam is its promise of extravagant returns 1-5% per day or 30-90% per month. Such promises usually sound too good to be true, so they should raise suspicion immediately. In this case, investors must approach platforms with promises like these with caution and verify their legitimacy.
Thorough Research Is Essential
Many people succumbed to HIBox, as it was endorsed by celebrities and popular influencers. Those figures can give credibility to a platform, but users need to research investment opportunities to warrant putting funds into them. Licensing should be looked for, alongside user reviews and regulatory approvals, to steer clear of a scam.
The Role of Influencers
This case outed the dark side of influencer marketing, where some influencers moved forward with huge monetary gains over ethical responsibility. It needs stricter disclosure norms and accountability for those who promote financial products or services. Followers must remain skeptical and avoid blindly trusting endorsements, even from trusted personalities.
Strengthen Digital Payment Oversight
The involvement of payment gateways such as Easebuzz and PhonePe in the scam process clearly indicates flaws in the merchant onboarding process. In such cases, strong verification processes need to be in place by financial institutions and adherence to RBI norms must be ensured to prevent misuse.
Report Fraudulent Activities
It took significant losses to reveal the victims of the HIBox scam. The authorities stress reporting suspicious transactions immediately through helplines such as 1930, as early reporting will prevent the growth of such schemes and subsequently overall damage.
The Need for Regulatory Vigilance
This scam underscores the need for stringent regulatory oversight of digital investment platforms. The government and financial watchdogs should implement strict compliance mechanisms and make regular checks on newer apps promising financial returns.
Educate the Public
The scale of the HIBox scam reveals that the public is ignorant about the risks associated with such schemes. The public, especially youths and techie users, can stay informed by having regular financial literacy programs to steer them away from scams.
The HIBox scam is an example of the risks in a world increasingly digital. While it provides various opportunities, its benefits are accompanied by new methods of fraudulent activity. Vigilance from individuals, more diligence in conducting research, and stricter guidelines for authorities and fraudsters alike can minimize incidences like this one.
The storm from the HIBox scam has already fueled controversy over cyber fraud and related issues on the shoulders of payment gateways and influencers. Currently, 20 companies connected to money laundering operations by HIBox are under investigation by authorities.
The HIBox app scam is a timely reminder of the dangers perpetuated by unmonitored investment sites. As technology opens doors to avenues previously unimaginable, it also opens avenues for exploitation. Public awareness coupled with stricter regulations, along with ethical practices by influencers, will help curb such frauds in the future.
For the victims, the authorities continue urging anyone affected to come forth and report their losses. Although this scam has caused significant damage, its exposure could lead to further safeguards and a more vigilant society.
Comments