A retired IAS officer from Telangana lost ₹3.3 crore in a sophisticated cyber fraud that exploited trust, artificial intelligence, and high-pressure investment tactics. What began as a promise of guaranteed returns ended in financial ruin, exposing the ever-evolving landscape of online scams targeting India’s elderly elite.
From Trust to Trap: The Rise of AI-Powered Cybercrime
In a chilling case that exposes the convergence of human trust and machine manipulation, a 72-year-old retired IAS officer from Telangana has been defrauded of over ₹3.3 crore by a cybercriminal ring posing as an AI-based investment company. The case, reported to Telangana’s Cyber Security Bureau, underscores how psychological manipulation, fraudulent tech claims, and targeted cyber tactics are now being used to exploit even the most experienced bureaucrats.
According to initial reports, the fraudsters posed as investment professionals, claiming to use AI-powered stock trading systems capable of producing 90% returns. The victim, unaware of the elaborate con, received a URL link, which when clicked, led to the installation of a malicious APK file on his device. This became the gateway to an elaborate phishing operation.
The perpetrators managed to win the victim’s trust over time by fabricating charts, dashboards, and fake transaction records. He then began transferring funds across multiple transactions, believing he was investing in a cutting-edge financial product. Between March and May 2025, he reportedly made 28 transactions, moving nearly ₹50 lakh at a time, amounting to a total loss of ₹3.3 crore.
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Cyber Trap in Motion: Deepfake Trust, Smart Disguise
This scam was not just another phishing attempt. According to sources familiar with the case, the main accused impersonated a Chief Investment Officer and even claimed their company used AI trading algorithms. Over video and phone calls, he introduced himself as “Arjun Ramesh Mehta”, projecting an image of credibility.
After building trust, the fraudsters demanded money for “export payment clearances”, especially when the victim attempted to withdraw his supposed gains. This sudden demand alerted the victim, who realized he had been scammed only after transferring his last large amount.
The emotional manipulation was severe. The scammers exploited the retired officer’s curiosity about modern tech, slowly involving him in fake investment modules. The visuals were professional, and the user interfaces were built to resemble authentic trading platforms.
National Trend: Seniors and High-Net-Worth Victims in Crosshairs
This case is part of a growing trend where senior citizens, professionals, and former government officials are targeted for AI-themed financial frauds. Cybercriminals are increasingly deploying social engineering, real-time manipulation, and identity spoofing, often using regional languages and tailoring scams to individual profiles.
Telangana police confirmed that a formal complaint has been lodged, and preliminary digital forensic leads point toward international scam networks operating through encrypted communication channels.
The Ministry of Home Affairs and CERT-In are now considering a fresh advisory aimed at educating the elderly and bureaucrats about sophisticated fraud tactics, particularly those that use APK files, deepfake identities, and AI buzzwords to trap victims.