Joint probe by CBI, US agencies unearth racket that used call-centres in India to defraud computer users in US

A joint operation by India’s Central Bureau of Investigation (CBI) and the United States Department of Justice unearthed an international racket that used call centres in Delhi, Noida, Gurgaon and Jaipur to defraud hundreds of elderly and vulnerable computer users in America.

The CBI raided the offices as well as residences of the directors of five companies in National Capital Region and Jaipur and seized incriminating digital evidences. It registered a criminal case against the five companies involved in the international fraud. The US District Court for the Southern District of Florida on Thursday issued temporary restraining order against the racket’s alleged kingpin, Michael Brian Cotter, and the five companies – dismantling their infrastructure in America, like websites and payment processing systems and prohibiting them from continuing to facilitate the fraud.

The court issued the restraining order after it received a complaint from the Consumer Protection Branch of the Civil Division of the US Department of Justice and the US Attorney’s Office for the Southern District of Florida.

The investigation to unearth the racket was launched following a tip-off from the Microsoft Corporation and was coordinated by the Transnational Elder Fraud Strike Force of the US Department of Justice.

According to the complaint filed in the US federal court, the racket operated by contacting the unsuspecting consumers in America through internet pop-up messages that falsely appeared to be security alerts from Microsoft Corporation or another well-known company. The pop-up messages fraudulently claimed that the computers of the consumers were infected by viruses, ran scans on the computers, falsely confirmed the presence of viruses and malwares and then provided a toll-free number to call for assistance. “When victims called the toll-free number, they were connected to India-based call centres participating in the fraud scheme. (The) call centre workers asked victims to give them remote access to their computers and told victims that they detected viruses or other malware on their computers,” the US Justice Department stated describing the modus operandi of the racket. “Eventually, the call centre workers would falsely diagnose non-existent problems and ask victims to pay hundreds of dollars for unnecessary services and software.”

Cotter, 59, who lived at Glendale in California, was accused of knowingly providing support for accomplices in India from the US. He allegedly facilitated the racket through several companies, including Global Digital Concierge Pte. Ltd. (formerly known as Tech Live Connect Pte. Ltd.) registered in Singapore, Sensei Ventures Incorporated and NE Labs Inc. registered in Nevada and Kevisoft LLC registered in New York and Kevisoft UK LTD registered in the United Kingdom.

The US Department of Justice sought both preliminary and permanent injunctions from the court to prevent the defendants from further victimizing the consumers in America.

“Today’s filing (of the complaint) reflects the Department of Justice’s continuing commitment to use all tools available to protect seniors from fraud, especially schemes perpetrated by transnational criminal organizations,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Civil Division. “The Department of Justice sincerely appreciates the CBI’s efforts to disrupt and prosecute technical-support fraud, government imposter fraud, and all other schemes directed at the American public.”

“The FBI works with its local, state, federal and international partners to combat technical fraud schemes,” said Assistant Director of the International Operations Division Charles Spencer. “We will continue to collaborate with law enforcement partners in order to hold criminals who engage in this type of deceptive activity accountable.”

A press-release issued by the US Justice Department quoted CBI officials reaffirming the commitment of the agency for continued close collaboration with the Federal Bureau of Investigation (FBI) and promoting cooperation with US law enforcement agencies on cybercrime and cyber security. “(The) CBI has been making concerted efforts to identify and rapidly dismantle any network of transnational cyber frauds operated out of India. This case further reinforces our continued commitment towards safer cyber space for all citizens globally,” it quoted the agency stating.

The complaint asserted that Cotter since at least 2011 had worked from the US with co-conspirators in India to operate the alleged racket, including by registering website domains, setting up shell companies, and entering into relationships with banks and payment processors to facilitate the collection of funds from the victims. The individual victims are alleged to have reported paying hundreds to thousands of dollars to the scheme for unwanted and unnecessary technical-support services, stated the US Department of Justice.