The Cyber Crime Wing of Chennai’s Central Crime Branch (CCB) has arrested a key accused in a ₹3.4 crore online investment fraud involving a 69-year-old retired bank employee from Andhra Pradesh. Police said the money was transferred through 13 transactions and subsequently routed through 8,574 bank accounts.
The arrested accused, identified as 52-year-old Konathala Krishna, was apprehended in Visakhapatnam following an investigation into the movement of the defrauded money.
How Did the ₹3.4 Crore Investment Scam Begin?
According to police, the victim was contacted on WhatsApp in 2025 by an individual claiming to be Rajeev Mehta, the Chief Investment Officer of an investment firm operating from Bengaluru.
The person introduced an investment opportunity and subsequently added the victim to a WhatsApp group named “FYERSHIPVIP”, which had approximately 50 members.
The group regularly circulated fabricated conversations showing substantial profits from investments. These messages were allegedly designed to convince members that the investment scheme was genuine and capable of delivering high returns.
Believing the claims, the retired bank employee began transferring money as instructed by the fraudsters.
How Was the Victim Cheated of ₹3.4 Crore?
Police said the victim transferred a total of ₹3.4 crore through 13 instalments to various bank accounts across different states.
The transfers were made according to instructions provided by individuals operating the fraudulent investment scheme.
The victim initially believed the investment opportunity was legitimate because of the conversations and profit claims shared in the WhatsApp group.
However, when the promised returns failed to materialise and the phone numbers used by the individuals became unreachable, the victim realised he had been cheated.
The victim subsequently approached the authorities to report the fraud.
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How Did Police Arrest the Prime Accused?
The victim first registered a complaint through the national cybercrime helpline 1930 in 2025 and later approached the Chennai Police Commissioner’s Office.
Following the complaint, a special investigation team was formed to examine the financial transactions and identify the individuals involved.
During the investigation, police traced approximately ₹40 lakh of the victim’s money to a bank account belonging to Konathala Krishna.
Investigators said this amount had been routed through Krishna’s account, making it an important lead in tracing the proceeds of the fraud.
A police team travelled to Visakhapatnam and arrested Krishna on Tuesday, October 6.
He was subsequently brought to Chennai for further investigation.
How Did ₹3.4 Crore Pass Through 8,574 Bank Accounts?
The investigation revealed an extensive network of financial transactions allegedly used to move the stolen money.
According to police, the ₹3.4 crore transferred by the victim in 13 transactions was subsequently layered through 20 levels of transfers.
Investigators identified 150 banks and 27 payment applications involved in the transaction trail, which extended across 8,574 beneficiary bank accounts.
The movement of funds through multiple accounts and payment platforms complicated efforts to trace the money.
Police said the transaction trail demonstrated how cyber fraud proceeds can be moved through numerous accounts after the initial transfer.
The investigation also indicated that the money was distributed through an extensive banking network rather than remaining in the accounts that initially received it.
How Much Money Have Police Recovered?
Police said they have recovered approximately ₹21 lakh in connection with the case.
Investigators have also frozen the identified beneficiary accounts as part of their efforts to trace and secure the proceeds of the fraud.
The recovery represents only a portion of the ₹3.4 crore allegedly lost by the retired bank employee.
The investigation remains focused on tracing the remaining money and identifying other individuals involved in the financial transactions.
How Do Cyber Fraud Networks Use Bank Accounts?
Police said online fraud networks frequently operate through extensive groups of agents who facilitate the movement of money.
These networks allegedly use current accounts belonging to small business owners, sometimes obtaining access by promising commissions.
According to investigators, fraudsters collect account holders’ SIM cards, mobile phones and internet banking passwords to move money quickly between accounts.
Such arrangements allow criminal networks to conduct transactions through accounts registered in other people’s names.
The CCB warned entrepreneurs and current account holders against sharing banking credentials or allowing others to use their accounts for financial transactions.
Police said participation in such arrangements could amount to a criminal offence and lead to arrest.
What Should People Know About Online Investment Scams?
The CCB has advised the public to exercise caution when approached by unknown individuals offering investment opportunities through WhatsApp groups, websites, Facebook or Instagram.
Police warned against schemes promising unusually high returns, particularly those that initially provide small profits to gain investors’ confidence.
Such early payments may be used to encourage victims to invest larger amounts before the fraudsters become unreachable.
Authorities have also cautioned business owners against sharing bank account details, SIM cards or mobile banking credentials with anyone offering commissions for using their accounts.
Victims of online financial fraud have been advised to report incidents immediately through the national cybercrime helpline 1930 or the official cybercrime reporting portal.
The Chennai investigation highlights how online investment scams can extend far beyond the individuals who initially contact victims. A fraudulent WhatsApp investment group allegedly persuaded a retired bank employee to transfer ₹3.4 crore, while the money was subsequently routed through thousands of accounts. The case demonstrates the importance of examining the financial networks that enable cyber fraud, including accounts used to receive, transfer and conceal stolen funds.
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