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A 35-year-old Hyderabad businessman allegedly lost ₹12.3 crore in an online trading fraud spanning seven months in 2026.
How Did the Trading Fraud Begin?
The businessman, a resident of Pragatinagar, approached the Telangana Cybersecurity Bureau (TGCSB) on November 13 and filed a complaint detailing the alleged fraud. According to his statement, the incident began on March 2, when an individual identifying himself as Arjun contacted him after reportedly noticing his profile on Facebook Marketplace.
Arjun allegedly introduced himself as a stock market investor and trading expert, promising attractive returns through investment opportunities. Trusting his claims, the businessman made an initial investment of ₹10,000 on March 10 by transferring the money to a bank account provided by Arjun. The transaction marked the beginning of a series of payments that continued over the following months.
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How Did the Loss Reach ₹12.3 Crore?
According to the complaint, the businessman transferred approximately ₹15.3 crore to multiple bank accounts supplied by the alleged fraudster between March and October 26. During this period, he received more than ₹3 crore in payments, which encouraged him to continue investing.
The complainant told police that the payments reinforced his confidence in the investment arrangement. He continued transferring substantial amounts after receiving assurances of higher returns. The alleged fraud continued for seven months, with the businessman ultimately reporting a financial loss of approximately ₹12.3 crore.
What Led to the Police Complaint?
The suspected fraud came to light in November when the businessman attempted to withdraw his entire investment along with the promised profits. Instead of processing the withdrawal, the person handling the investment allegedly demanded that he deposit additional money. The demand raised suspicions about the legitimacy of the trading arrangement. The businessman subsequently lodged a complaint through the National Cyber Crime Reporting Portal on November 11 before approaching the Telangana Cybersecurity Bureau on November 13.
Following the complaint, police registered a case under Sections 316(2), 318(4), 319(2) and 338 of the Bharatiya Nyaya Sanhita (BNS), covering criminal breach of trust, cheating, cheating by personation and forgery-related offences. Sections 66-C and 66-D of the Information Technology Act were also invoked. The case highlights how alleged investment fraudsters can use initial payments and promises of higher returns to encourage repeated transfers before obstructing withdrawal requests.
