Tamil Nadu Uncovers Iridium Investment Scam worth Multi-Crore

• The Scam: Tamil Nadu Police have found a big deal in financial fraud that is also termed as the Iridium Scam and it had swindled hundreds of investors by making them believe that they will make colossal profits by trading in the rare metal iridium.

How it Worked:

• Fraudsters argued that iridium, a valuable metal could be sold over the border at huge profits.
• To seem like legitimate letters, they employed forged RBI approval letters, forged government documents and forged RBI-like email IDs.
• Victims were enticed by assurances that a small amount of investment in terms of few lakhs of rupees would work out to crores of rupees.

Police Action:

• CBCID, Crime Branch-Criminal Investigation Department has made two phases of raids.
• It has already arrested 57 people, with 27 being the recent wave of raids in 15 districts.

Key Facts:

• Iridium: This is a rare dense metal of the platinum group, which is applied in high-tech industries. The common people cannot freely sell it.
• Modus Operandi: Preying on public ignorance on the metal and forging official documents on the RBI and other government agencies.
• Public Advisory: Government has also cautioned against any offer that offers astronomical returns on trading iridium and to check such offers with the help of the authorities. Charging any such trade is not approved by the RBI.