Cyberabad police arrest two for investment fraud

Hyderabad: The Cyberabad cybercrime police arrested two persons who are natives of Aurangabad, Maharashtra, involved in the investment fraud.

The arrested persons were Naresh Shinde, an account supplier, and Saurabh Shinde, an account holder, where the victim transferred Rs 50 lakh. Police said the other five accused are absconding. According to the police, the five accused persons were the management and organisers of the Kotakpro web application. This is an ‘institutional stock investment fraud’ in which the victim was defrauded by fraud web applications of institutional stock investment platforms on the pretext of IPO allotments and high returns in the short term.

Police said, on October 8, they registered a case following a complaint. In the complaint, the software engineer was a fraudulent stock investor. The complainant joined a WhatsApp group named ‘B2231 KSL Official Stock’ which focused on stock market trading and skill building, led by Narayan Jindal, Anjali, and their associates, who claimed to provide profitable trading insights.

After being convinced of their credibility, the complainant registered on a trading platform named Kotakpro and transferred a significant amount based on their guidance in the pretext of the new IPO’s allotment. He deposited nearly Rs 2.29 crore into the platform for the allotted stocks, and virtual profit was shown, but he encountered obstacles when attempting to withdraw his funds.

Police said the suspects demanded additional payments under various pretences, leading the complainant to realise he had been deceived. They exploited the victim’s trust by manipulating trading activities, such as using various tactics to prevent withdrawals, ultimately leading to a significant financial loss.

The cybercrime police advised the citizens to be cautious before making an investment or trading in platforms that guarantee high returns in the short term. “Be aware of fake and fraudulent investment schemes; verify institutional information with SEBI and verify their genuineness on official websites only. Report cybercrime on helpline 1930 or https://www.cybercrime.gov.in,” said an official.