An online fraud scheme operating through WhatsApp links and a fraudulent app has resulted in significant financial losses for villagers in the Indian state of Bihar. The scam enticed people to invest in virtual animals, such as pigs and ducks, promising substantial profits.
The origin of the scam can be traced back to a WhatsApp message that circulated in Bihar, claiming that buying animals online through an app called ‘Smile Rancher’ could lead to significant returns. The message highlighted the success story of a middle-aged man who supposedly won INR 20 lakh (approximately $2 million) through this online investment.
Victims of the scheme had to create an account by entering a six-digit password and could then purchase various animals depicted in the app. Each day, they would log in and click on the animal they bought, earning a certain amount in the app’s wallet.
The most expensive animal was the peacock, costing INR 50,000 and supposedly earning INR 3,000 per day. The cheapest was the duck, priced at INR 5,000, with a claimed daily return of INR 400. However, when users attempted to withdraw money, they often encountered server errors, although some managed to withdraw small amounts, leading others to believe it was possible.
As news of the scheme spread, more individuals became interested and invested, often borrowing money or selling assets to participate. However, one day the app abruptly stopped functioning, leaving investors empty-handed. The app was not available on platforms like Google Play Store or Apple App Store, making it difficult for them to take any action against it.
The funds spent on virtual animals were directed to the account of Sewing SKY India Pvt Limited, an unlisted company dealing in fabrics, registered in Telangana Hyderabad, owned by Gangadhar Pathri and Ajay Kumar Pathri.
The scam’s promoter, Bhishma Pratap, disseminated the rumors and created a WhatsApp group called “Ranchers no. 1,” adding villagers and sharing the application link. Pratap left the group on the same day the app stopped working. The fraudulent app portrayed itself as a breeding management investment company from the United States, claiming involvement in offline investment promotion and seeking investors for the breeding industry.
Kasim Khan, one of the victims, filed a complaint against the fraudulent company, alleging a loss of INR 55,000. The scam extended beyond the village in Bihar and reached Assam, where a gym trainer and his colleagues invested and suffered financial losses.
Unfortunately, this online scam took advantage of vulnerable individuals seeking extra income, causing significant financial harm to victims in Bihar and beyond.
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