Cyber Crime Police Station (Headquarters) of the Telangana Cyber Security Bureau (TGCSB) has arrested two individuals involved in a stock trading fraud that duped a man of Rs 8.14 crore in Hyderabad, officials said on Sunday.
The accused, identified as Rahul Dangi and Rahul Bhoi, were arrested from Rajasthan’s Udaipur and have been brought to Hyderabad for further investigation. Police have recovered three mobile phones from their possession.
The incident came to light on October 21 when a resident of Hyderabad’s Banjara Hills filed a complaint alleging that he had been lured into a fraudulent stock trading scheme.
As per the complaint, the man was invited to join a WhatsApp group under the pretext of stock trading and investing in Initial Public Offerings (IPO). Over three months, he transferred Rs 8.14 crore to accounts linked to the scammers.
The fraudsters manipulated a fake trading app to show fictitious profits and coerced the man into making additional payments under false promises. Upon realising the fraud, the man reported the matter to the cyber police.
An earlier arrest in the case was made when the accused, Shravan Kumar, was detained in Chittaurgarh, Rajasthan.
Accused Rahul Dangi (21) held a current bank account in the name of M/s Shree Sanwariya Furniture, which was used to receive Rs 75 lakh from the person. The links of the account were traced down to 32 other fraud cases across India, with transactions totaling Rs 3.7 crore.
The other accused, Rahul Bhoi (25), is the agent who supplied fraudulent bank accounts to the network, two of which were used in this scam. His accounts were linked to 20 other crimes nationwide.
HOW THEY TRAPPED PEOPLE
The fraudsters used to target unsuspecting people through WhatsApp and Telegram mobile apps, posing as representatives of reputed trading firms. They would share market trends and stock recommendations and conduct online sessions to build trust. Individuals were persuaded to invest in high-yield schemes like IPOs and block trades via a fake app.
Initially, the app displayed successful transactions and profits to lure victims into transferring more funds. However, attempts to withdraw funds triggered error messages and additional demands for regulatory fees or penalties. When people refused to pay, the fraudsters severed communication, and the app became non-functional.
Timely reporting and public vigilance can prevent such frauds and aid in the recovery of funds, a senior police official said.
A case of fraud has been registered into the matter and further investigations have been launched to dismantle the larger network behind the scam, police added.
