Hyderabad: A Chinese cyber fraud gang has been identified as the prime suspect behind the Rs 14.5 crore investment scam. This scam targeted a Hyderabad-based dental doctor, according to Telangana Cyber Security Bureau (TGCSB) officials.
Preliminary findings from the bureau’s investigation revealed that the syndicate orchestrated a well-planned cybercrime operation. Officials believe the fraud is part of a broader trend. This trend involves Chinese-run investment scams that increasingly target Indian citizens using social media platforms.
According to the complaint, the victim received a friend request in September via Facebook from a profile named “Mounika Madhavan.” After accepting the request, the woman, posing as a widow, exchanged contact numbers. She developed a close rapport with the doctor through frequent messaging.
Chinese cyber fraud gang used fake IPO bait
She later claimed to be an employee of a company named CMC. She persuaded the doctor to invest in an upcoming IPO, offering shares at half price with promises of high returns. Trusting her, the doctor opened an account linked to the fake CMC platform. Initially, he deposited small amounts.
These early investments yielded apparent profits, including a Rs 89,000 withdrawal facilitated by the fraudster. Convinced of the platform’s legitimacy, the doctor proceeded to invest a total of Rs 14.5 crore.
The fraudulent portal later showed a fabricated balance of Rs 35 crore in his account. However, when the doctor attempted to withdraw funds, he was told to first pay 30% in charges. Suspicious, he sought advice from acquaintances who confirmed it was a scam, prompting him to lodge a formal complaint.
TGCSB immediately intervened and managed to freeze Rs 1.8 crore. However, officials found that the remaining funds had been converted into cryptocurrency and routed overseas. Authorities noted that recovering the transferred amount would be extremely difficult but said efforts were underway.
Chinese cyber fraud gang recruits Indians overseas
Investigators said Chinese cyber fraud gangs are now operating out of Laos, Myanmar, and Cambodia. They lure Indian youth with fake job offers and coerce them into executing digital scams.
During a recent rescue of 500 Indian nationals from Myanmar, authorities learned that the investment frauds were being orchestrated by Chinese-run networks. These networks use data from millions of Indians. The gangs supply Indian databases to scam operators who tailor fraudulent pitches to lure unsuspecting victims.
Officials warned the public against accepting random friend requests, especially from women. They noted that such profiles are often fronts for organized cybercrime groups.