Stock Trading fraud: Two arrested for Rs 8 crore online investment scam in Hyderabad
Hyderabad: The Telangana Cyber Security Bureau (TGCSB) has arrested two individuals involved in a trading fraud that defrauded a victim of Rs. 8.14 crore through online manipulation.
The arrested accused are Rahul Dangi and Rahul Bhoi from Udaipur, Rajasthan. They were apprehended for their roles in an online investment scam targeting unsuspecting investors through social media.
According to the TGCSB, the fraud began on October 21, 2024, when a Banjara Hills resident was lured into a trading-related WhatsApp group. The fraudsters persuaded him to invest in block trades and IPOs through a manipulative application, extracting over Rs. 8.14 crore over three months.
“Rahul Dangi operated a current account under M/s Shree Sanwariya Furniture, through which Rs. 75,00,000 was transferred to 25 bank accounts. The account has 32 crime links across India and has transacted approximately 3.7 crore rupees. Rahul Bhoi, an ‘account supplier,’ provided additional accounts to facilitate the fraud,” said TGCSB in a statement.
Modus Operandi
Explaining the fraudsters’ modus operandi, Shikha Goel, Director, TGCSB, said, “They target victims through social media like WhatsApp or Telegram, posing as representatives of reputed trading firms. They lure individuals by sharing market trends, stock recommendations, and invitations to exclusive trading groups. Once victims join, the fraudsters build trust by conducting online sessions to explain trading strategies and promote fake stock broking applications.”
They persuade victims to invest in high-yield schemes like IPOs and block trades by promising guaranteed allotments through institutional investor routes, claiming exclusivity and high returns. Victims are asked to transfer funds to designated accounts or a fraudulent app that initially shows successful transactions and significant profits to create a false sense of security. When they try to withdraw funds, the app displays error or imposes additional demands like regulatory fees, inspection charges, or penalties for transaction irregularities to extract more money. Once victims refuse or can’t pay, the fraudsters sever communication, and the app becomes non-functional, leaving them with significant financial losses, added Goel in a statement.
Appeal to public
The Telangana Cyber Security Bureau (TGCSB) urges the public to stay vigilant against online financial frauds. Avoid unsolicited links or unverified investment groups on social media platforms. Always verify the authenticity of trading platforms, stock broking applications, and investment schemes before transferring funds. Be cautious of promises of guaranteed high returns or exclusive access to IPO allotments, as these are red flags for scams.
“If you encounter suspicious activities or online fraud, report immediately to the Cybercrime helpline at 1930 or file a complaint on the National Cyber Crime Reporting Portal. Timely reporting aids quick action and fund recovery. Stay alert, stay safe!” read the statement released by TGCSB.
Earlier, the TGCSB made an arrest of another suspect, Shravan Kumar from Chittorgarh, Rajasthan, in connection with the case. The TGCSB has seized three mobile phones as part of the investigation and continues to uncover the complete network behind these fraudulent activities.