The accused provided bank accounts to organised cybercriminals in exchange for commission.
Hyderabad – In a major crackdown on online financial scams, the Hyderabad Cybercrime Police have arrested three individuals involved in an organised investment fraud network that duped investors across India of nearly ₹5.9 crore.
The accused — Madathala Ramesh Reddy (25), Gandi Srinu (31), and Gurrapukonda Sridhar (43) — all residents of Andhra Pradesh, were found to have opened multiple bank accounts and provided access to cybercriminal syndicates operating investment frauds through social media platforms.
Modus Operandi
According to officials, the trio opened bank accounts in different financial institutions and allowed organised cybercriminals to use them for fraudulent transactions. In return, they received a commission for every transfer linked to the scam.
Ramesh Reddy opened an account under the name “Ramesh Traders” in City Union Bank and received 15% commission.
Gandi Srinu opened an account with HDFC Bank and earned 10% commission.
Gurrapukonda Sridhar opened an account titled “S.S. Tyre Collection” in YES Bank and received 20% commission.
The accused were linked to three separate investment fraud cases involving ₹37.82 lakh, ₹9.72 lakh, and ₹11.50 lakh, respectively.
Victims Targeted via Social Media
Police investigations revealed that the victims were approached through unsolicited WhatsApp messages from individuals impersonating investment advisors or representatives of reputed financial companies.
They were lured into WhatsApp groups such as “VIP-2012 Stock Growth Strategies,” “HORIZON CAPITAL,” and “T14 – Aamir Singh’s Community,” where they were encouraged to invest in fake stock trading and crypto platforms like SMC STK Trading App and ValiantCapital App.
Once the victims deposited money, withdrawal requests were blocked and the fraudsters disappeared, leaving investors without recourse.
Charges and Legal Action
Following a detailed investigation, the three accused were arrested and booked under:
Sections 66(C) and 66(D) of the Information Technology Act (identity theft and cheating by computer resources), and
Sections 318(4), 319(2), 336(3), 338, and 340(2) of the Bharatiya Nyaya Sanhita (BNS) for criminal conspiracy, cheating, and misuse of digital infrastructure.
Police Statement
A senior police official said,
“The accused acted as facilitators, providing their bank accounts to cybercrime networks in return for a commission. These accounts were used to transfer and launder proceeds of nationwide investment scams.”
The officer added that authorities have intensified monitoring of mule accounts being used for financial cybercrimes.
Rising Threat of Investment Scams
Cyber experts note that such cases highlight the rapidly evolving landscape of digital investment fraud in India. With the proliferation of messaging apps, crypto wallets, and online trading platforms, organised cybercriminals are able to conduct high-value scams with minimal traceability.
Authorities have urged citizens to remain cautious of any unsolicited investment offers on WhatsApp, Telegram, or social media, and to immediately report suspicious activity on the National Cybercrime Reporting Portal (cybercrime.gov.in).
