High returns, higher risk: Mumbai Police flags 'COSTA App Saving' scam

COSTA App Saving promised unusually high returns on deposits, investors complain after fraud

The Mumbai Police has warned people against an unregistered investment platform called COSTA App Saving after receiving complaints of online fraud. The Economic Offences Wing (EOW) of the Crime Branch said the app, which was available on the Google Play Store, is not authorised by any financial regulator in India.

 

What triggered the police alert

According to the police, several people told the EOW COSTA promised unusually high returns on deposits. “The app is not registered or authorised by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), or any other competent authority,” the Mumbai Police said in a post on X.

 

 

The police emphasised that such unregulated platforms are a growing source of cyber fraud. Once users transfer funds in hopes of quick profits, the operators often vanish or shut down the app abruptly, leaving investors unable to recover their money.

 

How the fraud works

 

While the police have not shared complete details, COSTA appears to mirror earlier online investment scams:

 

Investors are lured through social media or WhatsApp messages promising daily or weekly returns.

 

Users are asked to download an app and deposit funds into digital wallets or bank accounts.

 

Once deposits increase, withdrawals are restricted or the platform disappears.

 

A similar scam under the name CostaApp was reported in Telangana earlier this year, where thousands of investors lost over Rs 15 crore.

 

Police advisory for investors

 

The Mumbai Police has urged citizens to stay cautious and verify the legitimacy of any investment platform before transferring funds. It asked people to:

 

Check registration details with RBI, Sebi, or other regulatory bodies.

 

Avoid apps that promise guaranteed or unusually high returns.

 

Report suspicious platforms immediately to the Economic Offences Wing (EOW).

 

Investors who have already used the COSTA have been asked to file complaints with the EOW. Reports can also be sent via email to srpieiu.eowmum@mahapolice.gov.in.

 

“Your vigilance is your best protection, verify before you invest,” the Mumbai Police said, reminding citizens that legitimate investment opportunities are always regulated and transparent.