Cyberabad cybercrime police register ₹4 crore stock trading fraud in two cases
HYDERABAD: Cyberabad Cyber Crime Police have registered two major online trading fraud cases, cheating victims of more than ₹4 crore through fake stock trading platforms.
Police said fraudsters created trading applications in the name of reputed financial service companies, and lured victims by promising high returns from stock trading, block deals, and initial public offering (IPO) allocations.
How the fraud was carried out
According to investigators, fraudsters first contacted victims on social media platforms such as Facebook and Instagram. They then added them to WhatsApp groups that appeared highly active, where fake participants showcased fabricated profits.
Using photos and names of company executives, the accused posed as financial advisors.Fraudsters persuaded victims to download fake trading apps, where dashboards displayed manipulated profits. To maintain what they described as “institutional DMA accounts” and secure IPO allocations, the fraudsters repeatedly asked the victims to transfer funds to multiple bank accounts.
In some cases, they allowed small withdrawals to build trust. Later, the perpetrators told victims to deposit additional money to clear audits or release IPO shares when the victims attempted to withdraw funds.
Extent of the fraud
In the first case, a scammer caused one victim to lose ₹2.24 crore. In the second case, another scammer tricked a victim into transferring ₹1.91 crore, of which only ₹10.66 lakh was briefly returned as part of the deception. The combined loss in the two cases amounts to ₹4.15 crore.
The Cyber Crime Police Station, Cyberabad, booked both cases.
Recovery efforts
With timely reporting on the National Cybercrime Reporting Portal and coordination with banks, police have kept ₹25.10 lakh on hold—₹4.33 lakh from the first case and ₹20.76 lakh from the second. These funds will be returned to victims after completion of due legal process.
Advisory to citizens
Cyberabad Police urged citizens not to download trading apps from unverified links, or transfer funds to unknown bank accounts. Officials also cautioned against schemes promising abnormal profits, such as assured IPO allotments or block deals.
Authorities advise citizens to verify investment opportunities directly with official company websites and to cross-check the credentials of financial advisors. Report suspected cyber frauds immediately to helpline 1930 or through the National Cybercrime Reporting Portal (www.cybercrime.gov.in).
