Two held in Rs 6 crore stock market fraud, gave bank accounts to cyber gangs: Police

New Delhi, Sep 19 (PTI) The Delhi Police has arrested two men for allegedly facilitating a multi-crore stock market fraud by providing their bank accounts to organised cyber syndicates, an official said on Friday.

The accused were identified as Kulwant Singh and Devender Singh, police said.

They were found to have provided their bank accounts for laundering fraud money routed through bogus investment schemes, police said.

According to the police, the syndicate lured investors with promises of IPO funding and high-return stock market opportunities.

"Unsuspecting victims were induced to transfer money into bank accounts controlled by the fraudsters. Nearly Rs 6 crore was siphoned off using this modus operandi," Deputy Commissioner of Police (Crime Branch) Aditya Gautam in a statement said.

The officer further said that a part of the fraud amount, Rs 20 lakh, was traced to an account in the name of an NGO. Police said this account was directly linked to at least 10 complaints lodged on the National Cybercrime Reporting Portal (NCRP).

"During the probe, it emerged that the accused had registered a trust in the name of an NGO and opened current accounts to obscure ownership. These accounts were then handed over to handlers of cyber fraud syndicates," said the DCP.

The police said Singh and Devender facilitated the fraudulent transactions by handing over cheque books, ATM cards, SIM cards and internet banking credentials. In return, they were paid Rs 30,000 per month and also received a five per cent commission on each transaction routed through the accounts.

Police said the modus operandi involved contacting victims through social media platforms, and targets were induced to download fake trading applications.

They were then added to manipulated online groups where they were persuaded to invest further. Whenever victims sought withdrawals, the fraudsters used deceit, coercion or threats to deny payments. The siphoned-off money was layered through multiple accounts to conceal its origin.

"The accused admitted during interrogation that they were professional account providers for organised cyber syndicates. Their accounts played a pivotal role in receiving and circulating fraud proceeds across India, while shielding the masterminds," DCP Gautam said.

Further investigation is underway to trace the handlers and recover the remaining amount siphoned off, police said. PTI BM ANM HIG