Hyderabad Police arrest six suspects in 1.22 crore trading fraud

The Hyderabad Police on Wednesday arrested six individuals in Hyderabad in connection with an online investment trading fraud that duped a local resident of ₹1.22 crore. The arrests led to the exposure of a widespread network of mule bank accounts used to route cyber fraud funds across the country.

Among the arrested individuals, three are from Telangana, two are from Maharashtra, and one is from Andhra Pradesh.

The police launched an investigation after a Hyderabad resident filed a complaint detailing how they were defrauded. The victim was initially added to a WhatsApp group named “282 BARCLAYS India High-Quality Stock Trading Research Group.” Through this group, the victim was persuaded to invest in fake trading platforms that promised high returns and IPO allotments.

To build trust, the fraudsters allowed the victim to withdraw ₹1.05 lakh early on. This convinced the victim to invest a total of ₹1.22 crore through 19 separate transactions. The scammers subsequently showed the victim fabricated profits amounting to ₹15.69 crore and demanded an additional payment of ₹35 lakh to release the IPO allocations.

During the investigation, police uncovered a wider network involved in supplying and operating mule bank accounts to channel funds from online trading scams. One of the key accused had established a company specifically to open high-value current accounts, subsequently sharing the internet banking credentials with third parties.

According to the police, 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 these 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 this 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. Financial analysis revealed that ₹3.37 crore had been routed through this account.

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