New Delhi: Delhi Police, in a joint operation with Shahdara Cyber Police, has busted a major investment fraud racket that duped people by promising high and “guaranteed” returns in the stock market. Three accused have been arrested in connection with the case.
According to police, the entire network operated through WhatsApp groups where potential investors were targeted with attractive profit claims and quick-return schemes. In one such case, a complainant was cheated of nearly ₹10 lakh after being trapped in the scheme.
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How the fraud began
Investigators revealed that the victim was first contacted in December 2025 and added to a WhatsApp investment group. The group members promoted stock market investments with promises of high and guaranteed profits.
Initially, small returns were shown to gain trust and encourage higher investments. However, once larger sums were deposited, the accused stopped responding. The victim neither received any returns nor got the principal amount back and was eventually blocked across all communication platforms.
Technical probe uncovers network
Following the complaint, police initiated a detailed technical analysis of bank accounts and digital transactions. Suspicious money trails were identified, leading to coordinated raids in the Rohini area of Delhi.
During the operation, three accused identified as Sumit, Sandeep, and Kamal Kumar were arrested. Preliminary investigation suggests that they were operating mule bank accounts to route and layer the stolen money.
Use of mule accounts and digital trail
Police officials stated that the gang used a structured mule account network to conceal the proceeds of crime. Funds were transferred through multiple layers of accounts to make tracing difficult and obscure the origin of the money.
Investigation also revealed WhatsApp chats recovered from the accused devices, which show conversations related to luring victims and facilitating fraudulent investment transfers.
Seizure of evidence
Police have recovered five mobile phones, six debit cards, and several critical digital records from the accused. These include bank transaction histories and WhatsApp chat logs that help reconstruct the entire fraud mechanism.
Officials said the digital evidence will play a crucial role in identifying other members of the network and mapping the wider syndicate.
Wider network under investigation
Agencies are now investigating whether more individuals are involved in the racket and how many victims may have been affected across different states. Early indications suggest that this could be an organised cyber fraud network operating at a multi-state level.
Police are also examining the role of individuals who may have supplied mule bank accounts and facilitated the movement of illicit funds through the banking system.
Rising concern over investment scams
Officials noted a sharp rise in investment fraud cases carried out through WhatsApp and social media platforms. Fraudsters typically build trust by showing fake profits initially and then disappear after collecting larger investments.
Probe continues, more arrests likely
The investigation is ongoing, and police have indicated that more arrests cannot be ruled out. Efforts are also being made to trace and recover the cheated amount.
The case highlights the growing threat of cyber-enabled financial frauds, where digital platforms are increasingly being misused to target unsuspecting investors.
