the City Cybercrime Unit (CCCU) arrested a gang of five individuals, including a sales manager from Kotak Mahindra Bank, on Wednesday. The group is accused of being involved in a major cyber fraud, operating mule accounts, and aiding a Rs 2.06 crore stock trading scam. The arrested suspects include Reddy Praveen (from West Godavari district), Kata Srinivasa Rao (a sales manager at Kotak Mahindra Bank from Guntur district), Mohammed Ismail (a travel business operator from Shalibanda), Mohammed Junaid (a crypto trader from Bahadurpura), and Maganti Jaya Kiran (a ready-mix concrete businessman from Krishna district).
During their investigation, the police revealed that the gang used multiple mule accounts to withdraw fraudulent funds. These funds were converted into cryptocurrency and sent to cyber fraudsters operating in Dubai through Hawala networks. Hyderabad’s police commissioner, C.V. Anand, explained that the fraud began when the victim, initially lured with promises of high returns, invested in a fake trading platform called “Anisha App.” Trusting the platform, the victim initially invested Rs 5 lakh, which grew to Rs 27.5 lakh after purported high returns. Under increasing pressure, the victim invested Rs 1.62 crore by December 16, only to discover it was all part of a scam.
“The suspects, particularly Maganti Jaya Kiran, opened mule accounts using his credentials at Kotak Mahindra Bank. These accounts were used to facilitate fraudulent transactions with help from associates Praveen and Srinivas, who operated the accounts for a commission.” Praveen also recruited unemployed youths to open bank accounts, promising them commissions in return.
Mohammed Ismail played a critical role in facilitating the transfer of illicit funds to Dubai, while Mohammed Junaid converted the money into cryptocurrency, specifically USDT (Tether), to hide the trail of the funds. Police have seized substantial evidence from the suspects, including Rs 47.5 lakh in cash, Rs 40 lakh worth of cryptocurrency, five mobile phones, two laptops, and 33 cheque books from various banks, along with several debit cards.
The investigation continues as police work to track down the higher-level fraudsters linked to this massive scam.