Hyderabad Police arrest six in ₹1.22-crore investment fraud

Hyderabad Police on Wednesday arrested six persons in connection with a ₹1.22-crore investment trading fraud, uncovering a network of mule bank accounts used to route. Among the arrested, three are from Telangana, two from Maharashtra and one from Andhra Pradesh.

The arrests followed an investigation into a complaint filed by a Hyderabad resident who was duped after being added to a WhatsApp group named “282 BARCLAYS India High-Quality Stock Trading Research Group”. Police said the victim was persuaded to invest through fake trading platforms and was promised high returns and IPO allotments.

Investigations revealed that the fraudsters initially allowed the victim to withdraw ₹1.05 lakh to build trust before convincing him to invest a total of ₹1.22 crore through 19 separate transactions. The victim was subsequently shown fabricated profits amounting to ₹15.69 crore and was asked to pay an additional ₹35 lakh for the release of IPO allocations.

During the investigation, police uncovered a wider network involved in supplying and operating mule bank accounts used to channel funds generated through cyber fraud and online trading scams. Officials stated that one of the key accused individuals had established a company to open high-value current accounts and subsequently shared internet banking credentials with third parties.

Police said that genuine business accounts were procured through commission-based arrangements, while other accounts were activated using remote access methods and OTP manipulation. The accused earned commissions for sourcing and supplying bank accounts to entities involved in illegal online activities.

Investigators found that a YES Bank account supplied by one of the accused was linked to 26 cybercrime cases across India, including four registered in Telangana. Transaction analysis revealed credits and debits totalling more than ₹1.10 crore through the account.

Similarly, a Central Bank of India account supplied by two other accused was linked to 18 cybercrime cases across the country, including two in Telangana. Police said financial analysis revealed that ₹3.37 crore had been routed through the account, which was used by fraudulent trading platforms.

The investigation indicated that the accused played an active role in facilitating and providing bank accounts that were later used for laundering and transferring proceeds derived from cybercrime and other unlawful online activities.

During the operation, police seized three mobile phones, four ATM and debit cards, two cheque books, two bank passbooks and three SIM cards.