Hibox Mystery Box Scam: How 30,000 Users Were Allegedly Cheated by an App Endorsed by Elvish Yadav

A significant fraud case involving the Hibox mobile application came to light, revealing how approximately 30,000 individuals were allegedly duped out of nearly ₹500 crore. The app, which promised users thrilling mystery box shopping experiences and guaranteed investment returns, has been linked to several prominent social media influencers, including YouTuber Elvish Yadav. This scandal has raised serious concerns about the responsibility of influencers in promoting potentially fraudulent platforms.

Full Details

The Hibox app was marketed as a unique platform offering mystery box shopping—a trend that allows consumers to purchase packages with undisclosed contents. However, it turned out to be a facade for a larger scam orchestrated by a syndicate that exploited the allure of surprise shopping and investment opportunities. According to the Delhi Police’s Intelligence Fusion and Strategic Operations (IFSO) unit, the scheme was operational since December 2022 but gained traction after influencer promotions began in April 2024.

The Scheme Unveiled

The investigation began when multiple complaints surfaced regarding the app’s operations. Victims reported being lured into investing with promises of daily returns ranging from 1% to 5%, equating to monthly returns of up to 90%. However, once they invested their money, the promised returns never materialized. Instead, users found themselves unable to withdraw their funds as the platform ceased operations.

Delhi Police have identified J. Sivaram, a 30-year-old from Chennai and director of Sutrulla Xpress Private Ltd, as the main suspect behind this elaborate scheme. He allegedly collaborated with other conspirators based abroad to execute this fraud. The police have arrested him and recovered ₹18 crore from various accounts linked to him.

A syndicate duping around 30,000 people on the pretext of providing a guaranteed return in the name of investment in application ‘Hibox’ was busted by IFSO unit, Special Cell. Many victims were drawn in through the promotion of the app by popular social media influencers and…

— ANI (@ANI) October 3, 2024

Role of Influencers

The involvement of social media influencers has been a critical aspect of this case. Popular figures such as Elvish Yadav and Bharti Singh were summoned for questioning due to their promotional activities for the Hibox app. The police have stated that these influencers helped legitimize the app in the eyes of potential investors through their vast online followings.

The IFSO unit reported that nine influencers were part of the promotional campaign for Hibox, which significantly contributed to its reach and appeal among unsuspecting users. Many victims expressed that they felt misled by the endorsements they trusted.

Investigative Progress

As investigations continue, authorities are examining various aspects of the operation. They are looking into how funds were transferred through e-wallets and identifying other individuals involved in the scam. The police have also received numerous complaints through the National Cybercrime Reporting Portal (NCRP), indicating widespread victimization across different states.

The investigation revealed that after promising returns for several months, Hibox began withholding payments citing technical glitches and legal issues. This pattern raised red flags among users who had initially received payouts but later found themselves unable to access their investments.

Public Response and Warnings

This incident has sparked outrage among victims and raised awareness about the potential dangers associated with investment schemes promoted by social media personalities. Authorities are urging consumers to exercise caution when engaging with online platforms promising quick returns on investments. Users are advised to conduct thorough research before committing any funds to such schemes.

The case also highlights a growing trend where trust in social media influencers can lead to significant financial losses for unsuspecting individuals. As more people turn to online platforms for investment opportunities, it is crucial for consumers to remain vigilant and skeptical of offers that seem too good to be true.