Rs 3.4 crore online investment scam – prime suspect arrested in Andhra Pradesh

CHENNAI: The Cyber Crime Wing of the Central Crime Branch (CCB) has arrested a key accused from Andhra Pradesh in connection with a Rs 3.4 crore cyber fraud on a 69-year-old retired bank employee. Police said that the amount cheated from him was layered through 8,754 bank accounts.

According to police, the complainant, was contacted on WhatsApp in 2025 by a person claiming to be Rajeev Mehta, Chief Investment Officer of an investment firm operating from Bangalore. He was then added to a WhatsApp group named ‘FYERSHNIVIP’ which had 50 members.

Police said the group circulated fake chats showing huge profits from investments to lure the victim. Believing it to be genuine, the victim transferred a total of Rs 3.40 crore in 13 installments to various bank accounts across different states as instructed by the fraudsters. When no profit was returned and the phone numbers became unreachable, he realised he was cheated.

He first filed a complaint on the national cyber helpline 1930 in 2025, and later at the Chennai Police Commissioner’s office. A special team was formed to investigate the money trail, which led them to Visakhapatnam, where they secured one of the prime accused, Konathala Krishna (52).

Police said that around Rs 40 lakh, which was taken from the victim, was routed through Krishna’s bank account. A police team secured him on Tuesday (Oct 6) and brought him to the city.

Investigations revealed the Rs 3.4 crore sent in 13 transactions was layered through 20 levels, routed via 150 banks and 27 payment apps into a total of 8,574 bank accounts. So far, police have recovered around Rs 21 lakh and frozen the beneficiary accounts.

Police said most cyber gangs operate with a large network of agents, run transactions from abroad, and use current accounts of small businessmen by luring them with promises of loan or commission. They collect the account holder's SIM card, mobile phone, and net banking passwords to move money quickly.

The CCB has warned entrepreneurs with current accounts not to share bank details, SIM cards, or phones with anyone, stating that doing so is a criminal offence and will invite arrest. Police have appealed to the public not to trust unknown persons contacting via WhatsApp groups, websites, Facebook, or Instagram promising high returns, and to be wary of schemes that pay small initial profits.

To file a complaint about online fraud, call 1930 or click www.cybercrime.gov.in