The Cyber Crime Wing of Cyberabad Police has arrested 13 people from multiple states in connection with eight cybercrime cases registered between June 25 and July 12, 2026.

The largest case involves an alleged ₹61.39 lakh online trading and IPO investment scam, in which a woman was reportedly lured through a sponsored Instagram advertisement and later persuaded to invest through a fraudulent trading application.

Three Accused Allegedly Supplied Mule Accounts

Police identified three accused in the investment fraud case as:

• Tilak Seiwal
• Kapil Ahir
• Sumit Ahir

All three are residents of Madhya Pradesh.

Investigators allege that they supplied bank accounts to cybercriminals in exchange for commissions. These accounts were allegedly used to receive and route money transferred by the victim.

Police are examining:

• Account-opening records
• Beneficiary details
• ATM withdrawals
• Subsequent fund transfers
• Commission payments
• Links with additional mule accounts

Instagram Advertisement Started the Fraud

According to investigators, the victim first encountered a sponsored advertisement on Instagram promoting high-return stock market investment opportunities.

After clicking the advertisement, she was allegedly:

• Added to WhatsApp groups
• Introduced to fake investment representatives
• Contacted by purported analysts and mentors
• Persuaded to join supposedly profitable trades

The fraudsters reportedly presented themselves as representatives of a reputed investment company to gain her confidence.

Fake VenSec Pro Trading App Used

The victim was instructed to download an application called VenSec Pro through a link supplied by the alleged fraudsters.

Police allege that the application was not a genuine regulated trading platform.

It reportedly displayed:

• Fabricated trading activity
• Artificial account balances
• False profit statements
• Fake IPO allocations
• Purported block-deal opportunities
• Simulated upper-circuit stock gains

The app allegedly showed virtual profits exceeding ₹1.14 crore, creating the impression that the investments were highly successful.

Small Withdrawal Used to Build Confidence

To establish credibility, the fraudsters initially allowed the victim to withdraw ₹4,500.

Investigators believe this small payout was deliberately permitted to convince her that:

• The platform was genuine
• Profits were withdrawable
• The investment process was legitimate
• Larger deposits could generate higher returns

After gaining her trust, the accused allegedly encouraged repeated investments.

Victim Induced to Make Multiple Investments

According to police, the victim was persuaded to transfer money for purported:

• Over-the-counter trades
• Upper-circuit stocks
• Block deals
• IPO subscriptions
• Premium investment opportunities

The repeated payments eventually resulted in an alleged loss of ₹61.39 lakh.

Additional Charges Demanded Before Withdrawal

When the victim attempted to withdraw her principal and the profits displayed in the app, the fraudsters allegedly demanded further payments.

These demands were made in the name of:

• Commission
• Tax
• Processing charges
• Withdrawal fees
• Account-release charges

After receiving additional funds, the accused allegedly blocked her trading account and stopped communicating.

Eight Cybercrime Cases Detected

Cyberabad Police said the 13 arrests relate to eight separate cybercrime cases.

The cases include:

• 4 online trading fraud cases
• 1 visa fraud case
• 1 cryptocurrency fraud case
• 1 CSAM-related case
• 1 job fraud case

Among the 13 arrested accused:

• 8 are linked to online trading fraud
• 2 are connected with visa fraud
• 1 is linked to cryptocurrency fraud
• 1 is connected with the CSAM case
• 1 is linked to job fraud

₹76.09 Lakh Refund Approved in 36 Cases

Police also stated that court orders have been obtained to facilitate the refund of ₹76.09 lakh to victims in 36 cybercrime cases.

The recovery process depends on:

• Timely reporting by victims
• Immediate freezing of beneficiary accounts
• Availability of balances in mule accounts
• Court approval
• Verification of claimant details

Rapid reporting through the cybercrime system can significantly improve the possibility of recovering transferred funds.

How Fake Trading Apps Operate

Fraudulent investment platforms commonly follow a predictable pattern:

• Social-media advertisements attract victims.
• WhatsApp or Telegram groups create false legitimacy.
• Fake analysts provide investment advice.
• A fraudulent app displays artificial profits.
• Small withdrawals are initially allowed.
• Larger investments are encouraged.
• Taxes or processing charges are demanded.
• The account is blocked once the victim stops paying.

The trading profits shown inside such applications may have no connection with actual stock market transactions.

SEBI Registration Must Be Verified

Before transferring money, investors should verify:

• Whether the intermediary is registered with SEBI
• Whether the trading application is available through an official app store
• Whether the broker’s bank account matches its registered legal name
• Whether the website domain belongs to the regulated entity
• Whether investment advice is being provided by an authorised person

No legitimate regulated broker requires payments to personal or unrelated third-party bank accounts.

Major Warning Signs

Investors should treat the following as serious fraud indicators:

• Guaranteed high returns
• Sponsored social-media investment advertisements
• WhatsApp-only customer support
• APK or app links sent privately
• Artificial profit screenshots
• Exclusive IPO or block-deal promises
• Demands for tax before withdrawal
• Repeated requests for additional deposits
• Transfers to multiple unrelated bank accounts

Taxes on legitimate investment income are not normally collected by unknown individuals through private bank transfers before a withdrawal is released.

Investigation Continues

Cyberabad Police are continuing to analyse:

• Digital devices
• WhatsApp communications
• Trading application data
• Bank account records
• IP addresses
• Mobile numbers
• Mule-account networks
• Interstate financial trails

The investigation may lead to additional arrests if further handlers, beneficiaries or account providers are identified.

All allegations remain subject to investigation and judicial proceedings.

Shunyatax Global Insight

Shunyatax Global says that a trading dashboard showing profits is not proof that any genuine market transaction has taken place.

Before investing, individuals should independently verify the broker’s SEBI registration, official application, bank account and website domain. Any demand for additional tax, commission or security money to unlock withdrawals should be treated as an immediate fraud warning. Businesses and families should also establish internal limits requiring independent verification before transferring high-value amounts to online investment platforms.