Mr. Sameer, a young professional from the city of Anandpur, recently found himself in a state of panic. Over the past month, he had become deeply involved in an online “color prediction game” that he discovered through a social media advertisement. The game promised quick and substantial returns for predicting the correct color in a sequence. Initially, he won small amounts, which encouraged him to invest more. Soon, he was making multiple transactions daily, both depositing money and receiving occasional “winnings.” However, after reading news reports about such apps being fronts for major financial scams and money laundering rackets, Sameer grew fearful. He worried that his frequent transactions and participation in the game could wrongly implicate him in a serious criminal case, such as money laundering or renting out his bank account. His simple attempt to make extra money had now turned into a source of immense anxiety.

Advice in such cases

If you find yourself in a situation similar to Mr. Sameer’s, it is crucial to act immediately to protect yourself. The primary fear is not just the loss of money but the potential for your bank account to be used by criminals, leading to serious legal consequences.

• Stop Immediately: Cease all activity on the app or website. Do not deposit any more money, and do not attempt to chase your losses.
• Preserve Evidence: Take screenshots of the app, your user profile, transaction history, and any chats or communications you had with the operators on platforms like Telegram or WhatsApp.
• Document Everything: Download your bank statements and highlight all transactions related to the game. Create a detailed timeline of your involvement.
• Consult a Lawyer: Seek immediate advice from a lawyer who specializes in cybercrime and financial fraud. Do not wait for the police or bank to contact you. Proactive legal counsel is your best defense.

Applicable Sections of Law

Participating in such games, even as a victim, can expose you to scrutiny under several Indian laws. It is important to understand the legal framework involved.

• The Prevention of Money Laundering Act, 2002 (PMLA): This is the most significant risk. These gaming apps are often used to launder money obtained from illegal activities. Large volumes of small transactions from thousands of players are used to obscure the origin of illicit funds. Even if you are a victim, your account’s involvement in this money trail can lead to it being frozen by the Enforcement Directorate (ED) and you being summoned for questioning.
• Bharatiya Nyaya Sanhita, 2023 (BNS): Provisions related to cheating and fraud, such as Section 318 of the BNS, can be applied. These apps fraudulently induce individuals to part with their money under the false promise of easy winnings.
• Public Gambling Act, 1867 & State Laws: While a central law is pending, most online games involving stakes and chance are considered illegal gambling under various state laws. Your participation could be a violation of the gambling laws in your state.
• Information Technology Act, 2000: This Act contains provisions to deal with various forms of cybercrime, including online fraud and scams.

If you are the complainant

If you have lost money and want to take action against the fraudulent app, you should:

• Report on the Cyber Crime Portal: Immediately file a formal complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or call the helpline number 1930.
• Inform Your Bank: Notify your bank’s fraud department about the suspicious transactions. This is crucial for initiating any chargeback attempts, though success is rare.
• File a Police Complaint: Visit your nearest cyber police station and file a First Information Report (FIR). Provide them with all the evidence you have collected.

If you are the victim

Your primary concern might be, “Will I be treated as a criminal?” The key element in a criminal case is intent (mens rea). As a player who was lured into the game, you are primarily a victim of a scam. However, law enforcement agencies cast a wide net during investigations. Your bank account could be frozen simply because it is part of the money trail. You may receive a notice to appear for questioning to explain the transactions. In this scenario, being cooperative and providing all evidence to show you were a bona fide player, not a willing accomplice, is vital. Having a lawyer guide you through this process is essential to ensure your rights are protected and your side of the story is presented correctly.

How the police behave in such cases

When a large-scale online scam is uncovered, investigating agencies like the state cyber police or the Enforcement Directorate (ED) act swiftly. Their first step is usually to trace the money trail. To do this, they instruct banks to freeze all accounts that have received funds from or sent funds to the accounts directly controlled by the scammers. This means hundreds or even thousands of players’ accounts can be frozen at once. Following this, they issue notices under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) to the account holders, summoning them to provide an explanation. The main focus is on catching the masterminds, but players are invariably caught in the investigation and must prove their lack of criminal involvement.

FAQs people normally have

Will I go to jail for playing a color trading game?
It is highly unlikely that you will be imprisoned for merely playing the game, as you are seen as a victim of the larger scam. The legal system primarily targets the organizers. However, the risk lies in being unable to explain the transactions, which could lead to prolonged legal complications.

My bank account is frozen. What should I do?
Contact a lawyer immediately. You cannot resolve this by simply talking to the bank, as they are acting on instructions from a law enforcement agency. Your lawyer will need to approach the concerned agency or file an application in court to have the account de-frozen, which requires submitting evidence of your victim status.

Can I get my lost money back?
Unfortunately, the chances of recovering your money are extremely low. These operations are often run by international syndicates using a complex web of mule accounts, and the money is quickly moved out of the country, making recovery nearly impossible.

What evidence is required?

To defend yourself or file a complaint, you must have solid evidence. The more you have, the stronger your case will be.

• Your complete bank account statement showing all related debits and credits.
• Screenshots of the game’s interface, your account profile, and the wallet showing your balance and transaction history within the app.
• Records of any UPI IDs, bank accounts, or phone numbers to which you sent money.
• Copies of all communications with the game operators via WhatsApp, Telegram, or other platforms.
• The link to the website or the source from where you downloaded the app.

How long will the investigation take?

Investigations into such large-scale financial frauds are incredibly complex and time-consuming. They involve multiple victims, numerous bank accounts, and often cross-state or international jurisdictions. You should be prepared for the process to take several months, if not years. The process of getting a bank account de-frozen can also be lengthy and may require persistent follow-up by your legal counsel.

Advocate Sudhir Rao, Supreme Court of India