₹1.07 Crore Online Share Trading Fraud Busted in Mumbai

The Mumbai Police’s Cyber Crime Branch has busted an organised online investment fraud syndicate that allegedly cheated investors of more than ₹1.07 crore through fake share trading and IPO investment schemes.

Six people have been arrested in connection with the case. Of them, four were apprehended from Vadodara, Gujarat, while the remaining two were arrested in Mumbai, police said.

Fake Trading Scheme Exposed

Investigators said the accused allegedly lured victims by promising unusually high returns through bogus online share trading and IPO investment opportunities.

The fraud was reportedly carried out using WhatsApp groups, fake trading applications and multiple bank accounts. Police believe the syndicate operated as a well-organised network, with each member assigned a specific role.

How the Network Operated

During the investigation, police found that the operation followed several stages to conceal the money trail.

According to investigators, the accused first identified individuals willing to provide their bank accounts. Current accounts were then allegedly opened in the names of different companies.

The money collected from victims was routed through several bank accounts before being transferred further, making it difficult to trace the transactions. Police suspect the entire mechanism was designed to avoid detection by law enforcement agencies.

How the Victim Was Trapped

The case surfaced after a 43-year-old Mumbai-based investment professional lodged a complaint with the Cyber Crime Branch.

Police said she came across an online share trading advertisement on WhatsApp and clicked on the link attached to the message.

She was then added to a WhatsApp group called ‘Arjun Mehta, Kua Securities, UK’, where individuals posing as market experts regularly shared stock market updates, investment tips and claims of exceptionally high returns to gain the trust of group members.

Trust Built Before Fraud

Investigators said the accused gradually convinced the woman that the investment platform was genuine through professional-looking discussions and trading advice.

She was later persuaded to register on what appeared to be an online trading platform and download a mobile application designed to resemble a legitimate stock trading app.

Believing the platform was authentic, the woman transferred money in multiple instalments from her own bank accounts as well as accounts belonging to her family members to bank accounts provided by the accused.

Loss Crosses ₹1 Crore

The Cyber Crime Branch found that the victim was allegedly cheated of ₹1,07,37,208 through the fake investment scheme.

Police are now examining the financial transactions linked to the accused, tracing the movement of the defrauded money and identifying other people who may have been involved in the operation.

Probe Continues

Investigators are also trying to determine whether investors from other states were targeted using the same modus operandi.

Further investigation is underway to identify additional victims, recover the money and uncover the full extent of the alleged cyber fraud network.