Chennai: The cybercrime wing of Greater Chennai Police has arrested two men in Hyderabad for allegedly cheating a 69-year-old Chennai resident of ₹62.26 lakh through a fraudulent investment scheme operated in the name of a purported UK-based company.
According to police, the victim was contacted on WhatsApp by individuals claiming to represent Steadyedge Capital, a UK-based investment firm. They allegedly promised high returns to persuade him to invest money. Trusting their claims, the elderly man transferred ₹1 lakh on February 4, 2025.
After receiving the initial payment, the fraudsters allegedly sent him fabricated account statements showing that his investment was growing. However, whenever he attempted to withdraw the purported profits, they demanded additional advance payments, claiming the money was necessary to release the returns.
Between February and October 2025, the victim made 21 transactions amounting to ₹62.26 lakh. The money was transferred to 17 different bank accounts, allegedly at the instructions of the fraudsters. The victim eventually realised that he had been cheated and approached the National Cyber Crime Reporting Portal to lodge a complaint.
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Following the complaint, a case was registered at the Cyber Crime Police Station of the Chennai Central Crime Branch. Investigators began tracing the transactions and identifying the beneficiaries of the funds transferred by the victim.
More Than ₹14 Lakh Traced to Hyderabad Accounts
During the investigation, police found that more than ₹14 lakh from the fraud had been transferred to bank accounts belonging to Mohammed Tariq Ali, 50, and his friend Manish Kumar, 45. Both men are residents of the Doodh Bowli area of Hyderabad.
Further scrutiny of their banking transactions allegedly revealed that the accounts had received substantial sums linked to cyber fraud. According to police, Tariq Ali’s bank account received approximately ₹1.48 crore over three months, while Kumar’s account received ₹63.72 lakh within three weeks. The money was reportedly transferred by victims from different parts of the country.
Investigators suspect that the accounts were used to receive and move money collected through investment scams. Police examined the transaction trail to establish how the funds were routed and what roles the two accused allegedly played in the wider network.
Cryptocurrency Used to Transfer Fraud Proceeds
According to the police investigation, Tariq Ali allegedly converted money received in his bank account into cryptocurrency through Binance before transferring it to members of the fraud gang. He reportedly retained a commission of 20 per cent for facilitating the transactions.
The use of cryptocurrency allegedly helped the accused move the proceeds of fraud onward after receiving money from victims. Investigators are examining the financial trail to identify the ultimate recipients and determine whether other individuals or accounts were involved in the operation.
The probe also indicated that Tariq Ali allegedly opened bank accounts in his friend’s name after his own account was frozen. Police suspect that these accounts were subsequently used to continue receiving money connected to fraudulent activities.
Investigators are working to establish the extent of the alleged network, the number of victims whose money passed through the accounts and whether additional bank accounts or cryptocurrency transactions can be linked to the accused.
Special Team Makes Arrests in Hyderabad
After identifying the suspected account holders and examining the financial transactions, Greater Chennai Police dispatched a special team to Hyderabad last week. The team arrested Tariq Ali and Manish Kumar in connection with the alleged investment fraud.
The arrests form part of the investigation into the ₹62.26 lakh loss suffered by the Chennai resident. Police are expected to examine the accused’s financial records and digital transactions to establish the movement of the money and identify other people who may have assisted the fraudsters.
The case highlights how online investment scams can exploit the credibility of purported foreign financial firms and use fabricated account statements to convince victims that their money is generating substantial returns. Repeated demands for advance payments to release profits are a common warning sign in such schemes.
Police have urged people to verify investment firms and their regulatory credentials before transferring money, particularly when contact is initiated through messaging applications. Investors should remain cautious of guaranteed or unusually high returns and avoid paying additional charges to withdraw profits displayed on unverified investment platforms.
The investigation is continuing, and the allegations against the arrested men remain subject to the legal process.
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