Former IAS Officer Duped of Rs. 3.37 Crore in Sophisticated Online Stock Market Scam

A retired Indian Administrative Service (IAS) officer, aged 72 and residing in Somajiguda, Hyderabad, fell victim to a meticulously planned cyber fraud, resulting in a staggering financial loss of ₹3.37 crore. The former bureaucrat, who once held the position of Principal Secretary in a Union Territory, was targeted by cybercriminals posing as investment experts.

The fraud began a few months ago when the officer received a message on his mobile phone containing a link to a so-called online trading platform. Shortly after, he was contacted by a man identifying himself as Arjun Mehta, who introduced himself as the Chief Investment Officer of the firm associated with the link. Mehta portrayed the platform as a technologically advanced investment service, claiming that their artificial intelligence-based analysis could deliver returns ranging from 120% to 160% through investments in mutual funds and Initial Public Offerings (IPOs).

To gain the trust of the retired officer, the fraudster maintained constant contact via WhatsApp video calls—morning, afternoon, and evening—offering stock market insights and discussing investment strategies in great detail. The frequent interaction and convincing display of market knowledge gave the scam an air of legitimacy.

Trusting the elaborate setup, the former IAS officer began transferring money to various accounts specified by the fraudster over a period of time. In total, he transferred ₹3.37 crore, believing it to be invested in high-yielding stock options.

The cybercriminals even showed him a virtual portfolio that falsely reflected a whopping ₹22.35 crore as the return on his investments. However, when he attempted to withdraw his earnings, he encountered multiple delays and was eventually unable to access any funds. It was then that he realized he had been conned.

Following this, he approached the Telangana Cyber Security Bureau (TGCSB) and lodged an official complaint. The authorities have since launched an investigation into the case, which highlights the growing sophistication of cyber scams targeting even highly educated and experienced individuals.

Officials urge citizens to remain cautious while engaging in online financial dealings and to verify the authenticity of platforms and individuals before transferring any money.