Hyderabad Cyber Crime police arrest four in an investment fraud scheme

HYDERABAD: The Cyber Crime team of the Hyderabad City Police arrested four individuals for their alleged involvement in an investment fraud scheme that targeted innocent people.

The suspects have been identified as Mangilal Godara, Bajanlal, Kamlesh Kumar (also known as Mahesh Kumar), and Prakash Chand, all residents of Suchitra, Hyderabad, but originally from Rajasthan State. The suspects were accused of colluding with cyber fraudsters to deceive the public through a fraudulent investment scheme.

The investigation began after a complaint from a victim in Hyderabad stated that cyber fraudsters contacted him through WhatsApp and Telegram, promising lucrative investment returns. The fraudsters directed the victim to invest funds with an international investment company operating an online stock and derivatives platform known as Ucoin8. The victim followed their instructions, investing Rs. 3,45,570 in different bank accounts, after which the fraudsters stopped responding. Another case with a similar modus operandi, where the defrauded amount was Rs. 13,65,750, was registered in Cyber Crime PS, Hyderabad.

The Cyber Crime Police, Hyderabad, registered cases under Sections 66(C) and (D) of the IT Act and Sections 419 and 420 of the IPC. The investigation revealed that the accused worked with cyber fraudsters for investment scams. The fraudsters initially provided small profits to gain trust, then encouraged victims to invest more significant amounts before ceasing all communication.

The suspects used fake ID proofs to open bank accounts, selling these accounts to the absconding prime accused, Kamlesh Kumar, for Rs. 1,00,000 each and a 10% commission on transactions through these accounts. Technical analysis of one of the beneficiary bank accounts revealed 52 additional fake shell company bank accounts, with a total defrauded amount of approximately Rs 16 crores. Of this, Rs. 1.68 crore has been frozen, and 92 cases have been registered across India, with 10 cases in Telangana State alone.

The suspects were arrested on April 3 and sent to judicial remand. Later, on April 14, they were taken into police custody for three days and then returned to judicial remand. The police seized 25 chequebooks, 24 debit cards, 12 mobile phones, six stamps of shell companies, 141 grams of gold ornaments, and one laptop.

The investigation team, led by Inspector of Police S. Naresh and supported by SI A. Shailendra, WSI Bhavani, and Head Constables Mohd. Feroz and V. Maheshwar Reddy, along with PC S. Ravi Kumar and ARPC A. Gajeshwar of PS Cyber Crime, Hyderabad, worked under the supervision of ACP Cyber Crime RG Siva Maruthi and DCP Cyber Crime PS Dara Kavitha.

Hyderabad City Police Commissioner K. Sreenivasa Reddy issued an advisory urging the public to avoid investing in unauthorised websites or schemes that promise high returns with minimal effort, cautioning against falling victim to fraudulent activities.