Two men were arrested in Jaipur for defrauding nearly Rs 4 crore through the PhonePe payment app. The suspects, posing as customer service representatives for the PhonePe company, were given Point of Sale (POS) machines by the company. Police seized Rs 4 lakh, 70 debit and credit cards and half a dozen mobile phones from the suspects.

The Cyber ​​Police Station, which is investigating the case, said that PhonePe filed a complaint on June 27. The complaint stated that Rs 3.97 crore was fraudulently obtained over a period of six months using 964 cards. The fraud involved the misuse of credit and debit card service provider Pay-Bank.

The complaint alleged that PhonePe compensates merchants when customer transactions do not result in funds being transferred to the merchant’s account. The accused took advantage of failed transactions on Phone-Pe’s POS machines. When customers reported money being withdrawn without successful payments, the accused contacted the credit and debit card provider and pretended to resolve the issue.

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The bank, based on their complaint, would deposit the money into Phone-Pe accounts linked to the accused. Instead of repaying the customers, the fraudsters withdrew the money for themselves, giving false assurances to the complainants.

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When Phone-Pe discovered the fraud, it filed a formal complaint. Police arrested the two suspects, who are from Dausa district, and found that they had used fake documents to join PhonePe. Once PhonePe discovered the fraud, the suspects stopped their activities. Police said that more details are expected as the investigation progresses.