Tech Trick Unmasked
BENGALURU
The Enforcement Directorate (ED) has seized over Rs 523 crore from two gaming companies accused of cheating subscribers using artificial intelligence (AI). The companies, WinJo and Pocket-52, allegedly used AI software to simulate online gambling, tricking players into thinking they were competing with humans.
According to the ED, deposits worth Rs 523.57 crore were seized from the companies’ accounts in Delhi and Gurugram. Investigations revealed that the firms created AI-controlled accounts, which were paired with real subscribers during gameplay. Players, unaware they were gambling against AI, lost large sums of money. The fraudulent games reportedly caused losses running into thousands of crores.
The ED had registered separate cases against Winzo Games Private Limited and Nirdesa Networks Private Limited, which operate the apps. Searches at their offices from November 18 to 22 uncovered evidence of AI accounts and money transfers to foreign bank accounts. Winzo allegedly transferred subscriber funds to its US account.
As part of the action, the ED seized bank deposits, shares, and mutual fund investments worth Rs 505 crore from Winzo, while Nirdesa Networks had assets worth Rs 18.57 crore attached. Authorities say these steps aim to prevent further misuse of subscriber money and curb online gambling scams.
Experts warn that AI-driven frauds are likely to rise as technology grows, urging users to verify apps and exercise caution while participating in online games promising monetary rewards. The ED has called for stricter monitoring of digital gaming platforms to protect unsuspecting players.