The Delhi Police has uncovered and dismantled two separate cyber-fraud operations that together swindled unsuspecting victims of over ₹50 lakh through sophisticated online investment schemes. The arrests—made in unrelated cases—underscore the growing complexity of cybercrime in India, where fraudsters continue to exploit digital financial platforms, fake investment advisory services and counterfeit cryptocurrency interfaces to dupe individuals of their hard-earned money.

According to senior officials, the two accused—identified as 44-year-old Sunil Kumar Reddy from Andhra Pradesh and 21-year-old Ayush Semwal from Uttar Pradesh—used deceptive digital platforms, forged incentive schemes and layered financial networks to lure and manipulate their victims into making large transfers over time. Both individuals operated in separate networks but employed similar tactics rooted in financial misrepresentation, psychological manipulation and technical concealment.

A Growing Threat of Digital Deception

Over the past few years, cyber-fraud involving investment and trading platforms has surged dramatically, especially targeting people eager to participate in stock markets and cryptocurrency trading. Fraudsters often impersonate financial advisors, create professionally designed but fraudulent websites, and even simulate real-time returns to win the confidence of their victims. The two cases cracked by the Delhi Police are striking illustrations of these methods in action.

Case 1: MBA Graduate Poses as Investment Advisor, Cheats Victim of ₹23.8 Lakh

In the first investigation, the police acted on a complaint filed by a victim who reported losing ₹23.8 lakh after being misled into believing he was making legitimate stock market investments. Sunil Kumar Reddy—an MBA graduate working as a business development executive in Anantapur, Andhra Pradesh—allegedly posed as an experienced investment advisor. He contacted the victim through well-designed online platforms and communication channels that seemed credible enough to pass preliminary scrutiny.

Reddy reportedly persuaded the victim to invest progressively larger amounts, assuring high returns and safe opportunities. Over a series of 15 separate RTGS and NEFT transactions, the victim transferred money into multiple bank accounts controlled or accessed by Reddy. The use of numerous accounts is a common tactic in cyber-fraud operations, as it helps criminals disperse and disguise the movement of illegal funds, making detection and tracing more difficult for law enforcement.

Once the victim realized that the adviser had stopped responding and that promised returns had vanished, he approached the Delhi Police Cyber Cell. Acting swiftly, investigators identified all the bank accounts Reddy used across different states. They moved quickly to freeze the accounts before large sums could be moved out of the banking network. Their prompt action resulted in the recovery of ₹5 lakh, which was refunded to the complainant.

After sustained digital tracking, technical surveillance and coordination with local authorities, the police finally traced Reddy to his residence in Anantapur. He was arrested and brought to Delhi for further questioning. Officials stated that he operated alone but relied heavily on camouflaged online platforms and deceptive marketing materials to present himself as a credible financial professional.

Case 2: Call-Centre Employee Linked to Crypto Fraud, Victim Loses ₹26.49 Lakh

In a second, unrelated case, the Delhi Police arrested 21-year-old Ayush Semwal, a third-year B.Com student and call-centre employee hailing from Gautam Buddh Nagar, Uttar Pradesh. This case originated from a complaint filed by a private sector employee from Lucknow, who claimed he was cheated of ₹26.49 lakh through a combination of fake incentive schemes and a bogus cryptocurrency trading platform.

Semwal allegedly played a critical role in the financial logistics of the fraud. While he may not have been the primary mastermind behind the crypto investment scam, he was directly involved in moving the illegally obtained funds. According to investigators, Semwal managed a complex web of “Layer-1” mule accounts—at least 18 of them—that served as the initial channels for routing, masking, and dispersing the victim’s money to deeper levels of the criminal network.

Layered transactions are a hallmark of sophisticated financial crime, enabling fraudsters to obscure the trail of funds by rapidly transferring money through multiple accounts, often belonging to individuals who either sell or rent their bank credentials for small commissions. This makes it extremely challenging for authorities to trace the ultimate beneficiaries.

During interrogation, Semwal reportedly confessed to selling several bank accounts to an unidentified associate in exchange for commission payments. These accounts were later used to funnel large sums of cheated money, making him an essential link in the laundering chain. His arrest took place on November 8 at his workplace in Noida’s Sector-58, following extensive surveillance and background checks by the cybercrime unit.

Investigations Expanded, All Associated Accounts Frozen

In both cases, the Delhi Police acted decisively to freeze all bank accounts linked to the two suspects. This step prevented further transfer of funds and significantly aided the financial recovery process. Officials noted that cyber-fraud investigations often require close cooperation between banks, regional police departments and central cyber forensic units to track digital footprints and untangle the complex web of transactions.

The authorities also clarified that the two arrests were made in connection with separate FIRs registered under the relevant sections of the Bharatiya Nyaya Sanhita (BNS), India’s updated criminal code. Both investigations are ongoing, and police are working to identify additional accomplices, digital assets, and any foreign links that may surface during deeper forensic analysis.

A Reminder of the Alarming Scale of Cybercrime

These incidents highlight a worrying pattern across India’s urban centres, where more individuals are falling prey to online investment scams, fake trading portals and deceptive cryptocurrency operations. Fraudsters increasingly use social engineering tactics, psychological manipulation and professional-grade digital marketing to appear legitimate.

Authorities have repeatedly urged the public to exercise caution while engaging with online financial advisers, especially those who promise unusually high returns or push investors to make quick decisions. Verifying the authenticity of advisory firms, cross-checking credentials and avoiding unsolicited investment offers remain critical defences against such fraud.

Going Forward

The Delhi Police has reiterated its commitment to pursuing cybercrime cases aggressively and protecting the public from the rapidly evolving threats in the digital financial space. As investigations continue, police officials hope to recover more of the stolen funds and uncover the full scope of these operations.

The arrests of Reddy and Semwal represent important breakthroughs, but they also reflect the complexity and growing frequency of online financial fraud. With digital transactions becoming increasingly integrated into everyday life, law enforcement agencies are intensifying their focus on cyber-crime prevention, public awareness and advanced forensic capabilities to stay ahead of emerging threats.