Hyderabad: Sleuths from Telangana Cyber Security Bureau (TGCSB) arrested a fraudster from Chittigarh in Rajasthan for a trading fraud in which a victim lost over Rs 8.14 crore.
Police had started investigations based on a complaint received from the trader, a resident of Banjara Hills, filed on October 21. The trader stated that he was induced to join a trading-related WhatsApp group and later persuaded to invest in block trades and IPOs through a fraudulent application.
Since August, the victim had transferred Rs 8,14,48,000 to accounts linked to the scam, Shikha Goel, TGCSB director, said in a press release on Sunday. After releasing the fraud the victim reported to the state cybercrime helpline.
“We formed special teams and identified the accused through his server as Sharvan Kumar Sharma alias Shravan Kumar Sharma (43) and arrested him from his house in Rajasthan,” Shikha said.
During interrogation the accused Sharma revealed that he used to pose as a representative of reputed trading firms and target victims through social media platforms
Once the victims join, Sharma and his accomplices conduct online sessions to explain trading strategies and promote fake stock broking applications, she said. They persuade victims to invest in high-yield schemes, such as IPOs and block trades, by promising guaranteed allotments through institutional investor routes, claiming exclusivity and high returns. When victims attempt to withdraw funds, the app displays errors or imposes additional demands such as regulatory fees, inspection charges, or penalties for transaction irregularities.
Investigations are underway to uncover the entire network involved in the fraudulent activities.
Meanwhile, the bureau has urged the public to remain vigilant against online financial frauds and avoid clicking on unsolicited links or joining unverified investment groups on social media platforms. One can report frauds on the cybercrime helpline 1930.
