The Cyber Crime Unit of Rajasthan Police has uncovered an alleged interstate cyber fraud network accused of cheating investors of more than ₹50 crore through fake online trading and IPO investment platforms.
Investigators have arrested two directors of a Delhi-based private company, alleging that the company's bank accounts were used to receive and rapidly transfer money obtained from victims across multiple states.
According to police, the investigation currently indicates an overall fraud estimated between ₹50 crore and ₹60 crore, although the final amount will depend upon verification of complaints and financial records.
The allegations remain under investigation, and criminal liability will ultimately be determined by the competent court.
Two Company Directors Arrested
The arrested accused have been identified by police as:
- Devendra Sharma
- Nikhil Luthra
Both are residents of Najafgarh, Delhi, and directors of Terrapulse Private Limited.
According to investigators, the two were arrested from Faridabad, Haryana, after police followed the financial trail arising from a cyber fraud complaint registered in Jaipur.
Authorities are examining whether additional company officials or associates participated in the alleged operation.
Investigation Began With Jaipur Doctor's Complaint
The investigation was initiated after a doctor from Jaipur approached police alleging that he had been cheated of ₹61.77 lakh.
According to the complaint, the victim responded to online advertisements promoting an investment platform called Vikasa Capital.
The advertisements were allegedly circulated through:
- Google advertisements
- Social media platforms
- Online promotional campaigns
Police allege that the platform falsely represented itself as a legitimate investment opportunity offering exceptional returns.
Fake Trading and IPO Investments Promoted
Investigators said the fraudsters allegedly encouraged victims to invest in:
- Indian stock markets
- US stock markets
- IPO subscriptions
- Premium investment opportunities
- Special investment schemes
The accused allegedly promised unusually high returns while presenting the platform as a sophisticated investment service.
Authorities are examining whether any of the advertised investment products actually existed.
WhatsApp and Telegram Used to Deliver Fake App
Police allege that after establishing contact with the victim, the fraudsters sent links through:
- Telegram
The victim was allegedly persuaded to install a fraudulent investment application instead of using a recognised brokerage platform.
Investigators believe the application displayed fabricated account balances, investment growth and transaction records to convince investors that their money was generating substantial profits.
Small Withdrawal Allegedly Allowed to Build Trust
According to investigators, the victim was initially permitted to withdraw a relatively small amount.
This technique is commonly referred to as a confidence-building withdrawal, where fraudsters allow limited withdrawals to convince victims that the investment platform is genuine.
Once trust was established, the complainant was allegedly persuaded to invest significantly larger sums.
Fake IPO Opportunity Allegedly Created
Police allege that one of the larger investment opportunities promoted to the victim involved a purported "Satkar Shopping IPO."
Investigators are examining:
- Whether such an IPO actually existed.
- Whether the offering was authorised by any recognised regulator.
- Whether fabricated documents were used to support the investment proposal.
- Whether other investors received identical offers.
False IPO opportunities have become an increasingly common method of attracting investors by creating the impression of exclusive early access to high-growth companies.
Withdrawal Request Allegedly Blocked
According to the complaint, difficulties arose when the victim attempted to withdraw the invested funds.
The application reportedly displayed a message claiming that the account had been blocked by a foreign regulatory authority.
Soon afterwards, investigators allege that communication with the operators ceased and the victim could no longer contact them.
Fraudsters frequently create fictional compliance or regulatory issues to delay withdrawals and discourage victims from immediately reporting the fraud.
Money Trail Led to Company Bank Accounts
Tracing the financial transactions, police allegedly found that money deposited by victims was credited into current accounts maintained in the name of Terrapulse Private Limited.
The accounts were reportedly maintained with two private sector banks.
Investigators allege that the company accounts functioned as collection accounts before funds were rapidly transferred elsewhere.
Authorities are now examining whether the accounts were knowingly used for fraudulent purposes or misused by others.
₹25 Crore in Suspicious Transactions Under Scrutiny
According to preliminary findings, more than ₹25 crore in suspicious financial transactions has been linked to the company's bank accounts.
Investigators are analysing:
- Incoming transfers
- Outgoing transfers
- Beneficiary accounts
- Transaction timing
- Layering patterns
- Cash withdrawals
- UPI transactions
- Corporate banking records
The financial analysis is expected to identify the ultimate beneficiaries of the allegedly diverted funds.
Linked to More Than 250 Cybercrime Complaints
Police stated that the bank accounts under investigation are connected with:
- More than 250 cybercrime complaints
- More than 50 FIRs
- At least 40 identified victims
These complaints reportedly originate from different parts of the country.
Investigators are comparing transaction records with complaint databases to determine whether additional victims can be identified.
Layering of Funds Under Investigation
Authorities allege that money received from victims was transferred rapidly through multiple accounts.
This process, commonly known as layering, is frequently examined in financial crime investigations because it may be intended to:
- Obscure the origin of funds
- Separate money from the original victim
- Complicate financial tracing
- Conceal the ultimate beneficiary
- Delay law enforcement recovery efforts
The investigation will seek to establish where the funds ultimately reached.
Banking Controls Also Being Examined
Police are examining how the company's bank accounts allegedly remained operational despite their reported connection with numerous cybercrime complaints.
Investigators are reviewing whether:
- Transaction monitoring systems generated alerts.
- Suspicious activity was detected.
- Internal compliance procedures were followed.
- Enhanced due diligence should have been triggered.
- Regulatory reporting obligations were fulfilled.
The inquiry does not imply wrongdoing by any bank but seeks to determine whether existing monitoring mechanisms identified unusual transaction patterns.
Social Media Investment Scams Increasing
According to the Future Crime Research Foundation (FCRF), fake trading and IPO scams increasingly rely on:
- Social media advertisements
- Search engine promotions
- Messaging applications
- Fake investment platforms
- Fabricated trading dashboards
- False customer testimonials
- Influencer-style promotional content
The objective is to create credibility before persuading victims to transfer increasingly larger amounts.
Warning Signs of Investment Fraud
Investors should exercise caution when they encounter:
- Guaranteed returns
- Exceptionally high profits
- Exclusive IPO access
- Pressure to invest immediately
- WhatsApp investment groups
- Telegram stock recommendations
- Unregistered investment applications
- Withdrawal restrictions
- Requests for repeated deposits
Legitimate investments always involve market risk and cannot guarantee profits.
Verify Before Investing
Before investing through any online platform, investors should independently verify:
- Regulatory registration
- Company incorporation
- Office address
- Broker authorisation
- Official website
- Customer grievance mechanism
- Contact details
- Public disclosures
Verification should be conducted through the relevant financial regulator rather than relying solely on advertisements or messaging applications.
Never Install Investment Apps From Messaging Links
Investment applications should preferably be downloaded only through official app stores or directly from verified financial institutions.
Users should avoid installing applications received through:
- Telegram
- SMS
- Social media messages
Such links may lead to counterfeit investment platforms designed to imitate genuine brokers.
Fake Trading Dashboards Can Mislead Investors
Fraudulent investment applications often display:
- Artificial profits
- Rising portfolio values
- Successful trades
- Bonus credits
- IPO allotments
- Investment certificates
These figures may exist only within the fraudulent application and may not represent actual investments or securities held on behalf of the user.
Investors should independently verify holdings through authorised intermediaries wherever possible.
Forensic Financial Investigation Continues
Police are continuing to examine:
- Company bank accounts
- Digital evidence
- Beneficiary accounts
- Corporate records
- Communication between suspects
- Device data
- Transaction histories
- Additional complainants
Investigators are also assessing whether the fraud forms part of a larger organised interstate or international cybercrime syndicate.
Further Arrests Possible
Authorities have indicated that further arrests cannot be ruled out as the investigation progresses.
Police are working to identify:
- Additional organisers
- Account operators
- Technical facilitators
- Marketing personnel
- Beneficiary accounts
- Associated companies
The final extent of the alleged fraud will be established after completion of the financial investigation and judicial proceedings.
Shunyatax Global Insight
Shunyatax Global says that modern investment fraud increasingly combines persuasive digital marketing with sophisticated financial layering. Investors should never rely solely on social media advertisements, messaging groups or exclusive IPO offers without independently verifying the platform's regulatory status. Financial institutions should continuously strengthen transaction monitoring systems for accounts receiving repeated third-party deposits followed by rapid outward transfers, as such patterns may indicate organised cyber-enabled financial crime requiring immediate scrutiny.