Panchkula: A major cyber fraud involving online stock market investment has come to light in Panchkula, where a resident was allegedly duped of ₹54.50 lakh through a fake investment app. In a breakthrough, police have arrested an accused identified as Krishna Kumar Rai from Bihar, with ₹4.65 lakh of the defrauded money traced to his bank account. The accused has been sent to a 7-day police remand as investigators work to unravel the larger network behind the scam.
Building Trust Through Fake Profits
According to the complaint, the fraud began in the last week of June 2025 when the victim received a suspicious message offering investment opportunities in the stock market via WhatsApp. The message included a link, which led to the installation of a fraudulent mobile application. Through this app, the victim was guided on how to invest, while regular communication was maintained to build trust.
In the initial phase, the accused adopted a calculated approach to gain the victim’s confidence. Small investments appeared to generate profits, and the victim was even allowed to withdraw limited amounts. This created the impression of a legitimate platform, encouraging the victim to invest larger sums over time.
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Escalation, Pressure, and Sudden Disappearance
Investigations revealed that between July 6 and August 11, 2025, the victim transferred a total of ₹54.50 lakh in multiple transactions to different bank accounts provided by the accused and his associates. Each transaction was followed by fabricated profit updates on the app, reinforcing the illusion of successful investments.
As the scheme progressed, the fraudsters escalated their tactics by displaying a fake balance running into crores on the app. The victim was pressured to invest more funds to unlock higher returns. However, when he refused to deposit additional money, the tone of communication reportedly turned threatening. Soon after, the app became inaccessible, and all contact channels were shut down, exposing the fraud.
Arrest and Network Under Investigation
During the probe, investigators conducted a detailed analysis of bank transactions and digital trails. By linking multiple accounts and tracking fund flows, they identified Krishna Kumar Rai as one of the key operatives. His arrest from Bihar marked a significant step in the case. Authorities confirmed that ₹4.65 lakh linked to the fraud was found in his account and has been recovered.
Preliminary interrogation suggests that the scam is part of a well-organised cyber fraud network involving multiple individuals operating in different roles. While some handled communication with victims, others managed bank accounts and digital infrastructure. Efforts are now underway to identify and apprehend the remaining members of the syndicate.
Rising Trend of App-Based Investment Frauds
Experts note that such investment scams have been rising steadily, with fraudsters increasingly using fake apps, social media platforms, and messaging services to target victims. The strategy often involves showing initial profits to build credibility before extracting large sums.
Authorities advise users to exercise caution, verify the authenticity of apps and financial services, and avoid sharing sensitive information or transferring funds without due diligence.
Further investigation is ongoing, with officials focusing on uncovering the full extent of the network and identifying other potential victims. More revelations are expected as the probe progresses, shedding light on the scale and operations of this cyber fraud racket.
