Fake AI-based stock market predictions: Cyberabad Police EOW bust Rs 5 Cr inter-state Ponzi scheme

Hyderabad: Economic Offences Wing (EOW) of Cyberabad Police has uncovered a large-scale Ponzi scheme involving fake AI-based stock market predictions that led to investors losing over Rs 5 crore.

The scam, which operated across Telangana and at least two other states, was allegedly orchestrated by two brothers who are now absconding.

Too good to be True: 7% monthly returns

According to the complaint filed by B Gowri Shankar (45), the accused lured investors with promises of “zero-risk” investments and guaranteed monthly returns of 7%.

Shankar said he invested ₹20 lakh between May 2023 and July 2025, believing the claims that the scheme was powered by AI tools predicting high-performing stocks.

Wider network of victims feared

Shankar's complaint states that at least 17 people have been defrauded of more than Rs 5 crore. However, police suspect the number of victims could be much higher, possibly over 100, as the scheme was aggressively marketed through events in multiple cities.

Seminars in Hyderabad, Vijayawada, Vizag

The accused was identified as G. Venkata Rao, and G. Venu Gopal introduced themselves as the director of ‘IIT Capital Technologies’ and proprietor of ‘AV Solutions’, respectively.

They reportedly held flashy seminars in Hyderabad, Vijayawada, and Visakhapatnam, showcasing a so-called AI-powered stock market prediction tool to build investor confidence.

Funds diverted for personal lavish purchases

Once funds were deposited into the company accounts, the money was allegedly diverted for personal use. “The accused used investor money to buy properties, vehicles, and gold through benami transactions,” said an EOW official.

Digital trail wiped, victims intimidated

To cover their tracks, the accused reportedly destroyed digital evidence. The complainant further alleged that victims who demanded their returns were threatened.

Case registered; Hunt on for Accused

Cyberabad EOW has registered a case and launched efforts to trace the absconding duo. Authorities have urged other potential victims to come forward and assist in the ongoing investigation.