A major cyber fraud racket promising high returns through cryptocurrency and online investments has been busted, with four accused arrested for allegedly duping hundreds of people. Investigators say the group routed nearly ₹100 crore through fake bank accounts, luring victims with promises of lucrative profits from forex trading and digital assets.
The arrested accused have been identified as Ajit Yadav (Ambedkar Nagar), Partesh Singh (Ballia), Ajay Kumar, and Ganesh Sahani (both from Kushinagar). Two other suspects—Ajay (Noida) and Rishabh (Shahjahanpur)—are currently absconding and are being traced.
Fraud network operated from hotel base
The operation came to light on March 20 after information was received about suspicious activities at a hotel in the Ramgarhtal area. The accused were allegedly targeting individuals by offering investment opportunities in forex trading and online gaming platforms, promising unusually high returns.
Acting on the tip-off, police raided the hotel premises and arrested four individuals. Several laptops, mobile phones, bank-related documents, and sensitive data including user IDs and passwords linked to multiple accounts were recovered from the spot.
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Use of fake and rented bank accounts
Preliminary investigation revealed that the accused operated through fake and rented bank accounts. Victims were asked to transfer investment amounts into these accounts. Once an account was flagged or frozen, the gang would open new accounts using identities of other individuals, retaining control through login credentials.
Officials also found details of several accounts already frozen by cyber police in different districts, indicating the scale and spread of the operation.
Fake profit projections to trap victims
The gang followed a structured modus operandi. Funds collected from investors were used for cryptocurrency trading, or at least projected as such. Victims were shown fabricated profit figures to build trust and encourage them to invest more.
When investors demanded withdrawals, the accused delayed payments with excuses and eventually cut off all communication. This cycle enabled them to extract large sums from multiple victims over time.
Illegal deposit schemes under scanner
Investigators have indicated that the group was effectively running unregulated deposit schemes, which are illegal under financial laws. Collecting money without authorization and channeling it into opaque investment avenues constitutes a serious financial offence.
Authorities expect more victims to come forward as the investigation progresses, given the wide reach of the network across states.
Probe widens, more names likely
Police are now examining bank accounts, digital devices, and transaction trails to determine the full extent of the fraud and identify additional accomplices. The total amount involved may rise further as more evidence emerges.
Sources suggest that the racket could have multiple layers, including facilitators who helped open accounts and manage digital operations.
Expert warns against high-return traps
Renowned cyber crime expert and former IPS officer Triveni Singh said, “Frauds involving crypto and forex investments are rising rapidly. Cyber criminals use social engineering and fake platforms to lure victims with attractive returns. Investors must verify the legitimacy of platforms and understand risks before investing.”
The case highlights the growing complexity of cyber-enabled financial frauds, where professional-looking setups and convincing narratives are used to exploit unsuspecting individuals. Authorities reiterate that vigilance and verification remain the strongest safeguards against such scams.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
