Hyderabad police bust Rs 2 crore online stock trading scam, one arrested

Hyderabad: A major online stock trading fraud has come to light after the Hyderabad Cyber Crime Unit arrested an accused, Pakeer Srinivas Reddy (41), a resident of Tilaknagar, Hyderabad. The case involves a person being cheated of Rs 2 crore through false promises of high returns on fake trading platforms and blocking withdrawals after building initial trust.

How does online stock trading fraud happen?

This type of fraud typically begins with scammers approaching individuals through social media, WhatsApp or Telegram. Victims are added to groups where so-called ‘financial advisors’ offer attractive stock market tips and promise extraordinary profits.

Initially, small returns are allowed to be withdrawn to build confidence. Once a larger amount is invested, the fraudsters simulate higher profits in the application interface but refuse withdrawals, demanding additional payments under the pretext of taxes or charges. Eventually, all communication is cut off, and the victims lose their investments.

Case summary

The complainant in this case was approached by an individual identifying as ‘Tina Mittal’ from an entity called ‘W33Barclays.’ The victim was added to a WhatsApp group for investment guidance and was persuaded to invest a total of Rs 2,01,15,000 through an app suggested by the scammers.

Upon trying to withdraw the funds, the complainant was asked to pay 5 per cent of the total deposit plus profit as a clearance charge. When the complainant refused and asked further questions, the fraudsters blocked contact, prompting the victim to approach the Cyber Crime Unit.

Modus operandi

Investigators found that the fraud was carefully orchestrated using the following steps:

1. Initial contact made via social media, WhatsApp, or Telegram.

2. Use of professional-sounding profiles and company names to build credibility.

3. Promises of double or triple returns within a short time frame.

4. Simulated high returns through fraudulent apps or dashboards.

5. Allowing minor withdrawals initially to gain trust.

6. Repeated persuasion to invest more, backed by fake profit reports.

7. Blocking of withdrawals once a substantial amount was invested.

8. Demanding more money under various pretexts and eventually ceasing all communication.

Legal action and arrest

The Cyber Crime Unit registered the case as Cr. No. 613/2025 under Sections 66(C), 66(D) of the Information Technology Act, 2008, and Sections 111(2)(b), 318(4), 319(2), 336(3), 338 and 340(2) of the Bharatiya Nyaya Sanhita (BNS).

The accused, Pakeer Srinivas Reddy, has also been linked to five similar fraud cases reported across India.

Police seized one mobile phone from the accused, suspected to have been used in executing the scam.

Cybercrime unit advisory

The Hyderabad Cyber Crime team has issued a public advisory to prevent such frauds:

• Do not fall for schemes offering unrealistic returns in a short period.

• Always verify the credentials of investment advisors and platforms.

• Avoid sharing financial information with unknown sources online.

• Fraudsters often use fake apps and false screenshots to mislead investors.

• Investment schemes promoted via social media are often not registered or regulated by SEBI.

• If you are a victim of cybercrime, dial 1930 or visit https://cybercrime.gov.in for assistance.