Punjab man held in ₹86 lakh cyber trading fraud
Hyderabad: Hyderabad cybercrime police have arrested a 27-year-old account holder from Punjab in connection with a trading fraud case that cost a Hyderabad-based freelancer ₹86.65 lakh.
The accused, Gurdit Singh, son of Nirmal Singh, a private employee residing at Janta Nagar in Punjab, was picked up in Crime No. 1276/2025.
Fraudulent trading scheme
Police said a 64-year-old freelancer from Hyderabad lodged a complaint in April 2025 after receiving WhatsApp messages promising high returns from trading in institutional stocks, over-the-counter (OTC) trades and initial public offerings (IPOs) under the qualified institutional buyer (QIB) quota.
The scammer claimed that each trade would yield profits of 2% to 20% on institutional stocks and 10% to 80% on OTC trades. The victim began investing through an app called SMC Ace, where inflated profits were displayed to gain his trust.
As the victim grew confident, he transferred larger amounts to accounts linked to the accused. However, when he tried to withdraw his money, the app stopped functioning. The fraudsters later demanded more funds under the guise of taxes and withdrawal charges.
In total, the victim lost ₹86,65,563. Police booked the case under Sections 66C and 66D of the Information Technology Act, and Sections 111(2)(b), 318(4), 319(2), 336(3), 338 and 340(2) of the Bharatiya Nyaya Sanhita.
Modus operandi
According to investigators, the fraud involved:
Emotional manipulation through friendly conversations before shifting focus to investments.
False claims of expertise in forex and institutional trading.
Display of fake profits, including small credit transfers to victims’ bank accounts.
Pressure to make larger investments, sometimes using family members’ accounts.
Tax and withdrawal scams to extract additional funds.
Police seized one mobile phone and one debit card from the accused.
Case detection
The operation was led by inspector K Satish Reddy with sub-inspector P Suresh and constables Mallesh, Govinda Rao, Ch Rajesh Kumar, Ramu and Shiva Shankar, under the supervision of ACP R G Siva Maruthi.
Cybercrime officials confirmed that Gurdit Singh is involved in one case registered in Telangana.
Public advisory
Police warned citizens against fake investment groups on WhatsApp, Telegram, Instagram, Facebook and X (formerly Twitter).
“Never believe promises of huge returns or screenshots of fake profits. Always use SEBI-approved apps and consult registered financial advisers before investing,” officials said.
They added that fraudsters often allow small withdrawals initially to build confidence before blocking access.