Mumbai: In a significant breakthrough against cyber-enabled financial fraud, the Kandivali Police have dismantled an alleged cyber investment racket by arresting two suspects from Pune. The accused are believed to have cheated a Kandivali-based businessman of ₹8.22 lakh by luring him into a fake online investment and IPO allocation scheme. The arrests have also exposed the use of mule bank accounts and fraudulent digital trading platforms that are increasingly being used by cybercriminals to target unsuspecting investors.
Police identified the arrested accused as Pratik Kshirsagar (38) and Dinesh Sankla (25). Investigators believe the duo played key roles in facilitating the movement of fraudulently obtained funds through multiple bank accounts.
Businessman Trapped Through Fake Investment Platform
According to investigators, the fraud took place between February 26 and March 31, when the complainant was persuaded to invest in what appeared to be a legitimate online trading platform. The fraudsters allegedly promised exceptionally high returns on investments while presenting a sophisticated website designed to resemble an authentic stock trading portal.
The fake platform reportedly featured digital trading wallets, investment dashboards, and virtual share portfolios. Every amount transferred by the victim was reflected in his online wallet, creating the illusion that genuine investments were being made and profits were accumulating.
Investigators said the carefully designed interface convinced the businessman that his investments were safe and profitable, encouraging him to continue transferring money.
Fake IPO Allotment Used to Extract More Money
After building the victim’s confidence, the fraudsters allegedly informed him that he had been allotted 30,000 shares in a lucrative Initial Public Offering (IPO). To secure this allotment, they demanded an additional payment exceeding ₹9 lakh.
Believing the investment opportunity to be genuine, the businessman managed to arrange and transfer ₹8.22 lakh. Shortly after receiving the money, the accused allegedly stopped responding to calls and messages, leaving the victim unable to recover either his investment or the promised IPO shares.
Realising that he had been deceived, the businessman filed an online cybercrime complaint on March 31, following which an FIR was formally registered on April 3.
Police Followed Digital Money Trail
Following registration of the case, Kandivali Police launched an extensive investigation focusing on the financial transaction trail.
Cyber investigators examined multiple bank accounts used during the fraud and discovered that the money had been routed through accounts maintained in:
- Bank of Baroda
- Uttar Pradesh Gramin Bank
- Yes Bank
Detailed banking analysis eventually led investigators to a Pune-based company account where approximately ₹3 lakh from the cheated amount had been credited.
This financial trail became the turning point in the investigation.
Raid Conducted in Pune
Acting on the evidence, a special Kandivali Police team travelled to Pune and conducted a raid at the office linked to Pratik Kshirsagar.
During the operation, police reportedly recovered several electronic devices, business documents, financial records and other digital evidence believed to be connected with the fraud network.
Kshirsagar was taken into custody for questioning.
Mule Account Facilitator Claims
During interrogation, investigators said Kshirsagar claimed he was not the mastermind but merely a mule account facilitator.
According to police sources, he allegedly admitted that he arranged and supplied bank accounts used to receive fraud proceeds and earned a small commission for every transaction routed through those accounts.
His statement led investigators to another suspect, Dinesh Sankla, who allegedly operated one of the accounts involved in moving the defrauded funds.
Police believe mule account operators play an essential role in cybercrime by helping criminals hide the origin of stolen money through multiple banking channels.
Four-Day Trap Leads to Second Arrest
Instead of immediately attempting an arrest, investigators reportedly devised a carefully planned operation.
Police allegedly contacted Sankla while posing as clients interested in acquiring additional mule bank accounts for financial transactions.
After maintaining communication for several days, investigators persuaded him to travel from Rajasthan to Pune on June 27 under the pretext of discussing further business opportunities.
As soon as Sankla arrived at the agreed location, the police team apprehended him without incident.
Both accused were subsequently brought to Mumbai for further interrogation.
Electronic Evidence Under Examination
Police are now conducting forensic examinations of seized electronic devices, including:
- Mobile phones
- Computers
- Banking records
- Digital storage devices
- Financial transaction documents
Investigators hope the digital evidence will help identify additional members of the cyber fraud network.
Officials suspect the accused may have assisted multiple cybercriminal groups by supplying bank accounts used for laundering fraud proceeds.
Wider Network Under Investigation
Police believe the scam may not be an isolated incident.
Investigators are examining whether the accused have links to organised cybercrime syndicates operating across different states.
Authorities are also attempting to identify:
- Additional mule account holders
- Bank account providers
- Fake investment platform operators
- Individuals responsible for creating fraudulent websites
- Beneficiaries who ultimately received the stolen funds
Further arrests are expected as the investigation progresses.
Rising Threat of Fake Investment Platforms
Cybercrime experts warn that fake investment portals have become one of the fastest-growing forms of online financial fraud.
Fraudsters typically exploit investors by:
- Promising unusually high returns.
- Creating professional-looking trading websites.
- Showing fake profits to gain confidence.
- Offering bogus IPO allotments.
- Pressuring victims to transfer additional money.
- Disappearing once significant funds have been collected.
The use of convincing dashboards and fabricated trading histories often makes these scams appear legitimate.
Police Issue Public Advisory
Following the arrests, Mumbai Police urged citizens to exercise extreme caution before investing through unfamiliar online platforms.
Authorities advised investors to:
- Verify whether investment platforms are genuine and properly regulated.
- Never transfer money solely based on online promises of extraordinary returns.
- Independently verify IPO allotment claims through official channels.
- Avoid sharing banking credentials or OTPs.
- Be cautious of unknown callers promoting investment opportunities.
- Report suspicious financial activity immediately.
Officials also reminded citizens that no legitimate investment company guarantees unusually high profits without financial risk.
Importance of Financial Verification
Investigators stressed that cybercriminals increasingly exploit trust by using sophisticated websites, fake customer support representatives and convincing financial documents.
Before investing, individuals should independently verify:
- Company registration.
- Regulatory approvals.
- Official customer support.
- Website authenticity.
- Banking details.
Simple verification measures can prevent substantial financial losses.
Investigation Continues
The Kandivali Police continue to trace the remaining funds and identify additional individuals connected to the fraud.
Authorities are analysing financial transactions across multiple states to determine the complete scope of the network. More arrests and recoveries are expected as investigators expand the probe.
Police have reiterated that cyber investment fraud remains one of the fastest-growing financial crimes in India and have appealed to the public to remain vigilant against schemes promising unrealistic investment returns.
