New Delhi, April 9 Two individuals have been arrested for allegedly defrauding a man of approximately Rs 7 lakh by falsely claiming high returns through a fake stock investment scheme operated via a social media app, police said on Thursday.
The accused, identified as Shashikant Sharma and Deepak, were apprehended from the Palam area in Delhi on April 5, they said.
According to police, the case was registered at the Cyber Police Station, Shahdara, based on a complaint by a man who alleged that he was cheated of Rs 7 lakh after being lured into an investment scheme promising high returns.
The complainant told police that fraudsters posing as representatives of a firm added him to a group on a social media platform. They shared fake credentials and presented themselves as legitimate stock brokers, initially offering free stock recommendations and analysis reports, he said.
Over time, the victim was persuaded to invest money and was shown fictitious investments in initial public offerings, with his portfolio reflecting a false use of funds, police said.
When he tried to withdraw the money, he was unable to and realized he had been cheated.
During the investigation, police found that the accused were part of a cyber fraud syndicate that targeted victims through social media groups, luring them with fake investment opportunities and routing the money through multiple bank accounts before siphoning it off.
Police traced a portion of the defrauded amount to a bank account linked to a shell entity operating from a virtual office in central Delhi.
The accused were involved in creating such entities and arranging mule bank accounts to facilitate the transfer of fraudulent funds, they added.
Police recovered two mobile phones and digital evidence from the accused, which is being analysed.
So far, 29 complaints have been linked to the syndicate, and investigators believe that no actual investments were made, with all transactions being part of a fraudulent scheme.
Further investigation is underway to identify other members of the network and trace the remaining amount, police said.