Hyderabad fraudster arrested in Rs. 2 crore stock trading scam, linked to 5 cases across India
Hyderabad: The Cyber Crime Unit of Hyderabad has arrested one individual, Pakeer Srinivas Reddy, aged 41, a resident of Tilaknagar, Hyderabad, in connection with a stock trading fraud.
The accused is facing charges under Sections 66(C) and 66(D) of the Information Technology Act, 2008, and various sections of the BNS (Sections 111(2)(b), 318(4), 319(2), 336(3), 338, and 340(2)). Srinivas Reddy is also allegedly involved in five other cases across India.
The complaint was filed by a victim who was contacted by a woman named “Tina Mittal,” claiming to represent W33Barclays. She convinced the complainant to join a WhatsApp group offering investment advice.
The complainant subsequently invested ₹2,01,15,000 through a trading app. However, when the complainant tried to withdraw the funds, they were told to pay 5% of the total deposit and profits before the withdrawal could be processed. Realizing they had been defrauded, the complainant filed a complaint with the Cyber Crime Unit.
Modus Operandi:
The fraudsters use various methods to deceive victims, including:
1. Contacting potential victims via social media platforms, WhatsApp, and Telegram.
2. Promising high returns (double or triple profits) in a short period through stock trading.
3. Displaying fake returns on the trading app initially to build trust.
4. Allowing partial withdrawals to gain the victim’s confidence.
5. Encouraging further investment with promises of substantial profits.
6. Blocking withdrawals once a larger sum is invested, preventing the victim from accessing their funds.
A mobile phone was seized from the accused during the investigation. The case was cracked by a team led by Inspector of Police K. Madhusudhan Rao, with team members SI K. Venkatesh, HC’s MA Kareem, Maheshwar Reddy, and PC’s Sampath and B. Sandeep.
Public Advisory:
Authorities have issued a public advisory urging people to be cautious of online stock trading frauds, especially those promising huge returns in a short period. They warn against sharing personal or financial details without verifying the legitimacy of such offers.
Fraudsters often advertise fake investment schemes on social media platforms such as Telegram, WhatsApp, and Instagram, using fake profit screenshots to lure victims. These schemes are not endorsed by regulatory bodies like SEBI. Victims are advised not to fall for promises of quick profits.
Anyone who believes they are a victim of cybercrime fraud should immediately dial 1930 or visit https://cybercrime.gov.in/ for assistance.
