Police in Azamgarh district have arrested two wanted accused in an alleged ₹3.14 crore investment fraud, in which a group of suspects reportedly posed as Customs Department officials and promised investors returns ranging from 50 to 90 percent. Investigators say the accused used fake identity cards and forged official documents to gain victims’ confidence before persuading them to invest large sums, which they later allegedly misappropriated.
How the Fraud Was Built on Fabricated Credentials
The case was registered at Kotwali Police Station following a complaint from Shekhar Srivastava, a resident of Anantpura Katra, alleging that Vikas Rai Sharma, Vishal Rai, Anil Kumar Sharma, Adbhut Rai Sharma, Anshu Singh and Mamta Sharma, operating from a flat in Nagar Palika Market in Matanbarganj, formed an organised group targeting people with fraudulent investment schemes.
The investigation found that Vikas Rai Sharma allegedly introduced himself as a Customs Department employee, displaying fake identity cards and forged official documents to establish credibility. He also allegedly claimed a relative held the position of Customs Commissioner in Delhi, a fabricated connection investigators say was used specifically to reassure victims before he promised profits of 50 to 90 percent from trading copper, gold, garments and mobile phones.
The Trust-Building Pattern and the Eventual Loss
Police allege the accused initially paid small returns to investors to build confidence and encourage larger commitments, a well-documented tactic in investment fraud designed to convert early scepticism into growing trust. The complainant, along with his brother and father, went on to invest a total of ₹3.14 crore across multiple transactions. The accused reportedly returned ₹51 lakh but allegedly misappropriated the remaining ₹2.63 crore.
When the victims demanded return of their remaining money, the accused allegedly abused them, issued threats, and warned of serious consequences, a pattern that frequently accompanies the final phase of such schemes once victims begin pressing for repayment rather than accepting further delays.
Arrests and a Recurring Regional Pattern
During the investigation, police arrested Vikas Rai, 30, and Vishal Rai, 34, from Kandharapur Market, both originally residents of Jolhapur village under Kandharapur Police Station limits, reportedly living in Gautam Buddh Nagar before their arrest. Police said the pair had been absconding for a considerable period before being tracked down.
This is far from an isolated tactic in Uttar Pradesh. A separate case earlier this year saw Kanpur’s Cyber Crime Branch arrest four people, including a woman, for a strikingly similar scheme impersonating both Customs and police officials, that gang reportedly operating from an IP address traced to Islamabad and using messaging apps with a police profile photo to build victim trust. The recurrence of Customs and law-enforcement impersonation as a fraud template across different Uttar Pradesh districts points to its continued effectiveness: a claimed government affiliation, particularly one associated with seizure powers or import regulation, lends an air of institutional authority that ordinary investment pitches lack.
According to a researcher at Algoritha Security, investment fraudsters frequently impersonate government officials, financial experts or influential business figures specifically to establish credibility before luring victims into fraudulent schemes, often paying small initial returns to build confidence before pushing for larger investments. The researcher noted that any investment opportunity promising unusually high or guaranteed returns should be treated as a major warning sign, and urged investors to independently verify the credentials of individuals, organisations and any supporting documents before transferring funds, regardless of how official those documents appear.
Police have produced both arrested accused before the court after completing necessary legal formalities, and the search for the remaining named suspects continues. Investigators are examining financial transactions and bank accounts to identify the full network involved and work toward recovering the defrauded funds.
