Cyber police have arrested three persons, including a salon owner, in connection with an organised cyber fraud racket that allegedly cheated multiple victims of large sums of money by promoting a fake online trading application. Investigators believe the salon owner played a central role in planning and operating the scam, which targeted unsuspecting investors with promises of unusually high returns.
According to officials familiar with the investigation, the accused allegedly designed and circulated counterfeit trading applications that closely resembled legitimate investment platforms. Victims were persuaded to invest money after being shown fabricated dashboards, profit statements and trading histories that suggested rapid and assured gains.
The arrests followed a series of complaints received from different parts of the country, indicating that the operation was not limited to a single city. Several complainants reported losing significant amounts after transferring funds to accounts linked to the fake platforms, only to find that withdrawals were blocked once larger sums were invested.
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Retired employee among victims
In one prominent case under investigation, a retired employee from Bhubaneswar was allegedly lured with assurances that his investments would generate returns running into crores. Over time, the victim reportedly transferred multiple instalments to accounts linked to the accused, eventually losing close to ₹1 crore.
Investigators said the victim was initially allowed to withdraw small amounts to build confidence, a tactic commonly used in online investment scams. As the investment size increased, communication from the operators slowed, and access to the trading application was eventually cut off.
Following the complaint, cyber police launched a detailed probe involving digital forensics, analysis of transaction trails and scrutiny of communication records. The investigation led to the identification of three individuals allegedly involved in different layers of the operation.
Distinct roles within the network
Preliminary findings suggest that each of the accused had a defined role in the fraud network. One of them allegedly managed bank accounts used to receive and move large volumes of money collected from victims. Another is suspected to have used a current account linked to a legitimate business to route the proceeds of the fraud, lending an appearance of credibility to the transactions.
The third accused is believed to have coordinated between victims and other members of the group, handling communication, guiding transfers and ensuring that funds were quickly moved across accounts to avoid detection.
Officials said the structure of the operation points to careful planning, with multiple accounts and intermediaries used to layer transactions and complicate the financial trail.
Multi-state footprint raises scale concerns
Investigators confirmed that complaints linked to the same modus operandi have surfaced in several states, suggesting the racket operated on a wider scale than initially suspected. The use of online platforms and messaging applications enabled the accused to reach victims far beyond their immediate geographical location.
Cyber police are now working with other agencies to identify additional victims and determine whether more individuals were involved in developing the fake applications, managing technical infrastructure or handling financial logistics.
Authorities have also begun examining whether the fraud proceeds were diverted into other assets or businesses, a step that could lead to further action under relevant financial laws.
Public advisory and ongoing probe
Officials cautioned the public against downloading trading or investment applications from unverified sources or acting on unsolicited messages promising guaranteed or unusually high returns. They reiterated that legitimate investment platforms do not demand rapid transfers or discourage users from withdrawing funds.
The investigation remains ongoing, with police continuing to analyse seized devices, banking records and digital evidence. More arrests are not being ruled out as the probe progresses and the full extent of the scam comes into focus.
For now, authorities say the arrests mark a significant step in dismantling an organised cyber fraud network that exploited growing interest in online trading and digital investments.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
