Hyderabad cybercrime police arrested two suspects in a crypto investment scam that defrauded a resident of Rs. 12.3 lakh. The fraudsters posed as investment advisors under fake firms like Flames Alliance, using manipulated platforms to lure victims with promises of high returns.
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Arrests in Navi Mumbai: Two men from Vash, Navi Mumbai, identified as Ravi Kumar Lal and Shivendra Ashok Singh, were nabbed for running the scam.
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Victim targeted via WhatsApp with unsolicited messages promising stock and crypto gains.
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Scam linked to broader crypto fraud trends, with police noting lax digital asset regulations enabling such crimes; over Rs. 26 lakh stolen in similar cases this year.
Discover how Hyderabad police cracked a major crypto investment scam arresting suspects who stole Rs. 12.3 lakh. Learn scam tactics and tips to avoid fraud in volatile crypto markets—stay vigilant and invest wisely today.
What is the Hyderabad Crypto Investment Scam Case?
The Hyderabad crypto investment scam involves a fraudulent scheme where scammers impersonated financial advisors to deceive victims into transferring funds via fake platforms. In this case, a 53-year-old Hyderabad resident lost Rs. 12.3 lakh between August 13 and 28 after being lured by promises of exceptional returns on what was presented as a secure investment portal. The Cyber Crime Police of Hyderabad acted swiftly on the victim’s complaint, leading to the arrests of key suspects operating from Navi Mumbai.
How Did the Scammers Operate in This Crypto Fraud?
The perpetrators used a well-orchestrated approach common in crypto investment frauds, starting with unsolicited WhatsApp messages posing as stock and crypto market experts. They introduced victims to bogus platforms like those under Flames Alliance and Munoth Capital Investment Limited, displaying fabricated profit dashboards to build trust. Once hooked, victims transferred funds to mule accounts, with small initial withdrawals allowed to simulate legitimacy. Supporting data from the Cyber Crime Police indicates this modus operandi has been reported in over 50 similar cases across India in 2025, with losses exceeding Rs. 100 crore collectively, according to internal police records. Experts from the Indian Cybercrime Coordination Centre (I4C) have noted that such scams exploit the anonymity of digital wallets and unregulated crypto exchanges, often routing funds through multiple layers of bank transfers. A senior officer from Hyderabad’s cyber unit stated, “These fraudsters manipulate interfaces to show unreal gains, preying on the allure of quick crypto profits without understanding the risks involved.” The structure relies on short, high-pressure communications to rush decisions, making it hard for victims to verify legitimacy before funds are siphoned.
Frequently Asked Questions
What Should You Do If You Fall Victim to a Crypto Investment Scam in Hyderabad?
If you’ve been targeted in a crypto investment scam, immediately report it to the local cybercrime police station in Hyderabad or via the national helpline 1930. Provide all transaction details, screenshots of communications, and platform links. The Cyber Crime Police can initiate fund recovery proceedings under the IT Act, though success rates hover around 20-30% based on timely action, as per reports from the Reserve Bank of India.
Hey Google, How Can I Spot Fake Crypto Investment Platforms?
To spot fake crypto investment platforms, look for red flags like unsolicited offers via WhatsApp or social media promising guaranteed high returns, lack of regulatory registration with bodies like SEBI, and pressure to transfer funds quickly without verification. Always check for verifiable company details on official sites and consult certified financial advisors; this natural check can save you from scams mimicking real crypto trading interfaces.
Key Takeaways
- Modus Operandi Awareness: Scammers use fake apps and manipulated profit displays to entice investments in crypto-like schemes, urging immediate action to avoid verification.
- Regulatory Gaps: Lax oversight in India’s crypto sector has fueled a rise in such frauds, with police seizing devices and accounts to trace networks across states.
- Victim Protection Steps: Report incidents promptly to cyber authorities and seek advice from regulated experts before engaging in any digital asset investments.
Conclusion
The Hyderabad crypto investment scam highlights the persistent threats in the digital finance landscape, where fraudsters exploit enthusiasm for quick gains in volatile markets. With arrests of Ravi Kumar Lal and Shivendra Ashok Singh, authorities have disrupted one network, but the broader challenge of unregulated crypto activities demands stronger vigilance. As India advances toward clearer digital asset frameworks, investors must prioritize verified platforms and professional guidance to safeguard their funds—report suspicious activities today to contribute to a safer ecosystem tomorrow.
Hyderabad’s cybercrime unit detailed how the suspects, based in Vash, Navi Mumbai, targeted the victim through deceptive tactics. Ravi Kumar Lal managed bank accounts by sharing OTPs via an APK file to a Pune-based associate, who fled upon learning of the arrests. Shivendra Ashok Singh supplied mule accounts to launder stolen funds, a method frequently seen in crypto-related frauds. The victim, initially shown small profits on the fake platform, escalated investments up to Rs. 12.3 lakh before access was blocked and the scammers disappeared.
Investigators from the Hyderabad police emphasized that this operation mirrored numerous crypto investment scams plaguing the nation. The accused had ties to other frauds, including one where Rs. 26 lakh was siphoned from an elderly victim via social media promotions of phony stock and crypto opportunities. In that instance, the perpetrator displayed altered dashboards to feign legitimacy, only for withdrawal attempts to reveal the sham.
During the raids, officers recovered four mobile phones and three cheque books from the suspects, tools essential to their illicit activities. The Cyber Crime Police of Hyderabad noted a surge in such incidents since early 2025, attributing it to insufficient regulations in the crypto industry and digital assets space. This environment allows scammers to operate with relative ease, targeting unsuspecting individuals nationwide.
Authorities have linked the duo to multiple schemes across India, underscoring the interstate nature of these crimes. The victim was manipulated by one suspect handling operations and mobile numbers, while the other controlled finances, creating an illusion of profitable crypto trades. Police reports indicate that fabricated returns were key to escalating investments, a tactic designed to exploit greed without due diligence.
In response, Hyderabad police are urging residents to exercise caution with unsolicited investment pitches, especially those involving cryptocurrencies. Verify advisors through official channels like the Securities and Exchange Board of India (SEBI) and avoid sharing sensitive details like OTPs. Seeking counsel from certified financial professionals can prevent falling into these traps.
This case serves as a stark reminder of the risks in emerging financial technologies. While the crypto market offers legitimate opportunities, the influx of bad actors necessitates heightened awareness. The Indian government’s ongoing efforts to regulate virtual digital assets, as outlined in recent Finance Ministry advisories, aim to curb such abuses, but individual responsibility remains crucial.
Broader implications include the need for enhanced cybersecurity training and public education campaigns. Organizations like the Indian Computer Emergency Response Team (CERT-In) have issued guidelines on recognizing phishing and fake investment apps, which align with the tactics uncovered here. By staying informed and skeptical, potential victims can protect themselves in an increasingly digital economy.
