Hyderabad: A large-scale organised financial fraud operated through advanced AI-powered investment platforms and Ponzi scheme tactics through which over 3,000 individuals across multiple states were “cheated”, was dismantled here with the arrest of two persons, police said on Wednesday.
The accused lured investors with false promises of steady monthly returns based on deceptive stock market prediction software, they said.
In the investment fraud, a total amount of Rs 850.59 crores was collected from 3,164 victims across multiple states during 2022–25 with fraudulent retention of Rs 232.36 crores, a release from Cyberabad Police Commissionerate said.
An amount of Rs 618.23 crore was partially returned.
A case was registered on July 29 and two persons—Director of a company and an employee — were arrested in Hyderabad on August 19, it said.
Four fraudulent entities (Primary Companies) and eight fraudulent websites were identified, police said adding the fraud network involved over 20 consultants and agents across major cities with technical developers and website administrators part of it.
On the modus operandi, police said the accused projected fake NSE/BSE certifications and organised investment seminars in Andhra Pradesh and Telangana and maintained premium offices to project legitimacy.
They targeted middle-class families, retired individuals, and working professionals in fraudulent investment operations and promised 7 per cent monthly returns through fake AI-based predictions.
Fake dashboards displaying fabricated profits were designed and they adopted a Ponzi structure with 20-30 per cent for limited trading, 40–50 per cent was used to pay earlier investors, and the balance “siphoned” for personal gain, police said.
The accused managed 21 mule bank accounts across different banks and converted illicit deposits into real estate, gold, and luxury vehicles.
They also operated international laundering channels, including Dubai-based operations. The accused systematically deleted digital records, threatened victims who attempted to complain and shut down websites under regulatory scrutiny, they added.
Two vehicles, 11 laptops, three mobile phones, and flats were seized among others.
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