Shamli: A nationwide online trading fraud worth over ₹20 crore has been unearthed in Uttar Pradesh’s Shamli, with police arresting two key operatives of a cyber crime syndicate that lured victims with promises of high returns from a so-called vegetable trading business. The racket came to light after 31 complaints linked to a single bank account were flagged on the Union government’s cyber crime reporting portal, triggering a detailed investigation.
Police said the accused were operating under the banner of ‘Nityachaudhary Trading Company’, which was used as a front to collect money from investors across multiple states. The firm’s current account, registered in the name of Nitin Kumar, was allegedly used to channel and siphon off funds collected through fake investment links and mobile applications.
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The arrests were made on Thursday evening after a police team intercepted the suspects on the Shamli–Muzaffarnagar road. Those taken into custody have been identified as Rahul Goyal, a resident of Moradabad, and Dharmendra Kumar, from Hapur. Investigators described both as seasoned cyber fraud operators who played a central role in managing accounts and coordinating fund transfers.
Fake profits, real losses
According to police findings, the syndicate targeted people through social media messages, messaging platforms and referral networks, offering investment opportunities in vegetable trading with the promise of unusually high and quick profits. Victims were directed to download fraudulent mobile applications or click on manipulated links that mimicked legitimate trading dashboards.
Once money was deposited, the app would show fabricated profits, encouraging investors to put in additional funds. In reality, no trading activity took place. The entire system was designed to create an illusion of growth until victims either attempted withdrawals or stopped investing.
When withdrawal requests were made, excuses such as technical glitches, verification delays or additional charges were cited. In most cases, communication was eventually cut off.
Mule accounts used to move money
Investigators said the stolen money was routed through mule accounts—bank accounts either rented or obtained from individuals lured by commission or employment offers. In one such account, transactions exceeding ₹1.84 crore were recorded in a single day, with most of the amount withdrawn or transferred within hours.
Police said the same account alone attracted 31 cyber fraud complaints from different parts of the country. Funds were rapidly layered and dispersed to avoid detection, a pattern commonly seen in organised cyber crime networks.
A mule account, officers explained, is often opened or handed over by individuals who may not fully understand the legal consequences, but later find themselves entangled in serious criminal proceedings.
Victims across multiple states
The scale of the fraud extended far beyond Uttar Pradesh. Police confirmed victims from Odisha, Karnataka, Haryana, Maharashtra, Delhi, Gujarat, and other states. The total amount cheated so far has been calculated at ₹20,12,72,368, with investigators warning that the figure could rise as more complaints are verified.
Digital forensics teams are now examining transaction trails, device data and communication logs to identify additional beneficiaries and handlers within the network.
How the network began
Police said the conspiracy took shape in Meerut, where Nitin Kumar first came in contact with Dharmendra Kumar. At the time, Dharmendra was involved in home delivery of fruits and vegetables and was looking for a current account to support business transactions. What began as a seemingly legitimate requirement soon evolved into a structured fraud operation, driven by commission-based incentives.
Seizures and ongoing probe
From the arrested accused, police recovered multiple mobile phones, SIM cards, ATM cards, identity documents and a car allegedly used for operational movement. Authorities said efforts are underway to trace other members of the gang and freeze additional accounts linked to the scam.
Police have urged citizens to exercise extreme caution while investing online, verify platforms independently, and avoid downloading unknown apps or clicking on unsolicited investment links. Complaints can be lodged promptly through the official cyber crime reporting mechanism to enable early intervention.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
