Online Investment, Trading and Task Scams in Hyderabad: What to Do and What the Law Says
This guide is for people in Hyderabad and Telangana who have lost money to a stock market or IPO “tips” group on WhatsApp or Telegram, a fake trading or investment app, or a “part-time job” that pays for liking videos or rating hotels and then asks for deposits, and for their families. It explains how these scams work in the words of the police, SEBI and the Ministry of Home Affairs, what to do first, how to check whether an adviser or app is genuine, what the criminal law says, and what the official texts say about getting money back.
How these scams work · Warning signs · What to do first · Checking SEBI registration · Forex platforms · The criminal law · Getting money back · SEBI complaints · If your account was used
How these scams work
- Fake investment apps: the Telangana Cyber Security Bureau lists “Investment fraud” first among the top cybercrime methods in Telangana. Scammers contact victims “through messaging apps like Whatsapp or Telegram, offering big profits”, send links to fake apps, and ask for money to be transferred to their bank accounts or UPI IDs. The app then shows a profit, and “At first, they let the victim withdraw some money to gain trust. But when the victim invests more, they refuse to let them take out any more money”.
- IPO and “institutional” offers: the Bureau describes “fake promises of high returns on IPO investments, claiming to work with reputable institutions like Foreign Portfolio Investors (FPIs)”, bogus trading apps, and money sent “to specific bank accounts controlled by the scammers”. SEBI lists the labels used as bait, such as “VIP group, Discounted trading group, Institutional Trading group, Official stock Community, Investment Club”, and the “exclusive services” promised, including “IPOs at discounted price”, “Block Trade at discounted price” and “Sure shot allocation of IPO”.
- Copies of real brokers: SEBI’s annual report for 2025-26 says fraudulent trading applications “are meticulously designed to mimic the platforms of well-known, SEBI-registered brokers”, and that “the funds are stolen by scammers, while the investments displayed within such applications are entirely fabricated”.
- Part-time job or task scams: the Ministry of Home Affairs described these in December 2023: targeted online advertisements using phrases like “Ghar baithe job”; an agent on WhatsApp or Telegram who asks the person to perform tasks “like Video Likes and Subscribe, Maps Rating, etc.”; a small commission at first, then a request “to invest more to get more returns”; and finally, “when victim deposits larger sum, deposits are frozen and thus victim is duped.”
- Slow trust building: in what the Bureau calls a “Pig Butchering Scam”, an unknown contact builds trust, “sometimes for weeks or even months”, before moving the conversation to “an exclusive investment platform with guaranteed high returns or a hot stock tip”.
In one Hyderabad case reported by the Bureau in July 2025, a victim who joined a WhatsApp group posing as a known financial services brand was able to withdraw once, but on the next withdrawal “was asked to pay an additional 15% to release the amount”.
Warning signs
- The Bureau’s advisory: “No stock trading happens through unsolicited links on social media platforms.”
- SEBI’s warning poster lists “Unverified app links or apk files (download only from official app stores!)”, “Payments to third-party accounts (legitimate platforms don’t do this)” and “Unrealistic promises (guaranteed returns in the securities market are a scam!)”.
- The Ministry of Home Affairs advises: “Verify the name of receiver mentioned in UPI App. If receiver is any random person, it may be a mule account and scheme may be fraudulent.”
- A demand for more money before you can withdraw is part of the pattern the police and SEBI describe: in the Hyderabad case above the victim “was asked to pay an additional 15% to release the amount”, and SEBI’s poster says that when withdrawal is blocked, “excuses and fees arise”.
What to do first
- Call 1930 and file on cybercrime.gov.in: complaints of financial cyber fraud “can be reported by calling the National Helpline number 1930”, and the caller must then make a formal complaint on the portal “within 24 hrs using the acknowledgement number received on SMS” (Indian Cybercrime Coordination Centre FAQ). The helpline provides immediate assistance “by facilitating prompt reporting and, where possible, freezing of fraudulent transactions” (Government backgrounder, October 2025). The Bureau asks victims to report “during the golden hour to improve chances of recovery”.
- What the portal asks for: the date and time of the incident, details of at least 200 characters, a national ID, and for financial fraud the bank, wallet or merchant name, the “12-digit Transaction id/UTR No.”, the date of the transaction and the amount. Suspect websites, social media handles, phone numbers and bank accounts can also be added.
- Keep the evidence: the portal’s FAQ lists bank statements, transfer receipts, e-mails, web addresses, chat transcripts, screenshots of the suspect’s number, images and videos. Keep a list of every transaction you sent and every amount you received back from the scammers, with dates, transaction IDs and the accounts or UPI IDs involved, and the scammer’s Telegram or WhatsApp IDs.
- Tell your bank: report the transactions to your bank as soon as you can. The RBI’s circular of 6 July 2017 required the banks it covered to advise customers to notify them at the earliest of any unauthorised electronic banking transaction and to give customers round-the-clock channels to report it; the circular does not expressly cover a payment you made yourself (see “Bank refund rules” below).
- In Hyderabad: for areas under the Hyderabad City Police, its Cyber Crimes Police Station, at the Central Crime Station building, Old Commissioner Office, Baseerbagh, states: “If you are victim of Cyber Fraud & Lost : More Than 1 Lakh : Contact Us on 8712666346” and “Less Than 1 Lakh : Contact Local Police Station”. It lists the documents required as the complaint copy and soft copy, address proof, bank statement and fraud-related documents.
- Freeze status: the Bureau runs a grievance helpline “To check the status of Account Freezing”: 040-29320049, every day from 10:00 AM to 5:30 PM except holidays.
See our guide on the first 48 hours after a cyber fraud.
Checking SEBI registration
- Advisers: “no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board” (SEBI (Investment Advisers) Regulations, 2013, regulation 3(1)).
- Research analysts and trading calls: the same rule applies to research analysts under the SEBI (Research Analysts) Regulations, 2014 (regulation 3(1)). Since 16 December 2024, “research services” are defined to include “providing trading calls”, buy, sell or hold recommendations and price or stop-loss targets, for securities listed or proposed to be listed on a stock exchange, given “to the clients or other persons or group of persons or general public” (regulation 2(1)(wa)), and trading calls are no longer treated as investment advice under the Investment Advisers Regulations. A research analyst is a person who does this “for consideration”.
- Where to check: SEBI’s website has searchable lists of registered investment advisers and research analysts. SEBI advises investors “to deal with only SEBI registered intermediaries and authentic trading apps”.
- The list alone is not enough: SEBI itself warns of “Impersonation of SEBI registered entities by fraudulent trading platforms, WhatsApp, Telegram channels” and of fake “certificates purportedly issued by SEBI”. Check that the app, phone number or payment account actually belongs to the registered entity.
- Validated UPI handles: from 1 October 2025, SEBI “has directed all the investor facing intermediaries to accept the UPI payments from individual investors only through @valid UPI handle”. The “SEBI Check” feature lets an investor enter a UPI ID or scan a QR code to see the validity of the intermediary’s registration and its bank account. SEBI’s Annual Report 2025-26 says investors will see “a thumbs-up icon inside a green triangle” on the UPI app’s confirmation screen, that the icon “only needs to be trusted when shown in the beneficiary (receiver’s) name confirmation screen on the UPI app, and not inside the UPI QR code”, and that “The absence of this icon serves as a critical warning that the recipient may be an unauthorized entity”.
- Other signals: SEBI has advised intermediaries to use the “1600” phone number series for service and transactional calls to existing customers, and SEBI’s Annual Report 2025-26 says that, under an initiative with Google, any stock trading app on Google Play “that belongs to a genuine, SEBI-registered broker will display a ‘Verified’ badge”.
- Finfluencers: since 29 August 2024, a person regulated by SEBI, or its agent, may not have any direct or indirect association with another person who gives advice or recommendations on securities, or makes claims of returns, without SEBI’s registration or permission (SEBI (Intermediaries) Regulations, 2008, regulation 16A). The restriction does not apply to association through a digital platform specified by SEBI. The rule binds SEBI-regulated entities; it does not itself regulate the unregistered person.
Forex trading platforms
The Reserve Bank of India has warned of “misleading advertisements of unauthorised Electronic Trading Platforms (ETPs) offering forex trading facilities to Indian residents, including on social media platforms, search engines, Over The Top (OTT) platforms, gaming apps and the like”. In the RBI’s words, resident persons “can undertake forex transactions only with authorised persons and for permitted purposes” under the Foreign Exchange Management Act, 1999, and electronically “only on ETPs authorised for the purpose by the RBI or on recognised stock exchanges”.
Since September 2022 the RBI has published an “Alert List” of entities not authorised to deal in forex or to operate forex trading platforms, which the RBI page showed as updated on 19 November 2025 when checked on 27 October 2026. The RBI says: “The Alert List is not exhaustive … An entity not appearing in the Alert List should not be assumed to be authorised by the RBI.” The RBI says authorisation status “can be ascertained from the list of authorised persons and authorised ETPs” on its website.
The criminal law
| Provision | What it covers | Maximum punishment |
|---|---|---|
| BNS s.318(1), (2), (4), cheating | deceiving a person and fraudulently or dishonestly inducing them to deliver property or to consent to its retention, or intentionally inducing them to do or omit something they would not otherwise do that causes or is likely to cause them damage or harm in body, mind, reputation or property; a dishonest concealment of facts is a deception | basic offence: 3 years, or fine, or both (s.318(2)); where the cheating dishonestly induces the person deceived to deliver property: 7 years and fine (s.318(4)) |
| BNS s.319, cheating by personation | cheating by pretending to be some other person, real or imaginary | 5 years, or fine, or both |
| IT Act s.66D | cheating by personation by means of any communication device or computer resource | 3 years and fine up to Rs 1 lakh |
| IT Act s.66C | fraudulent or dishonest use of another person’s electronic signature, password or other unique identification feature | 3 years and fine up to Rs 1 lakh |
In the July 2025 Hyderabad case, the Bureau’s release records the case under sections 318(4), 319(2) and 338 of the BNS and section 66-D of the IT Act. The BNS also defines organised crime to include “cyber-crimes” carried on as a continuing unlawful activity by or on behalf of an organised crime syndicate (section 111(1) and its Explanation); whether it applies depends on facts about the accused, including earlier charge-sheets.
Getting money back: what the official texts say
- Freezing through 1930: the Citizen Financial Cyber Fraud Reporting and Management System brings together the police of each State, banks and financial intermediaries “on a single platform to take immediate action on the complaints regarding financial cyber frauds received through helpline number 1930”. The Ministry of Home Affairs says real time action is ensured through integration with financial institutions “for immediately blocking the defrauded amounts”.
- Seizure and attachment: any police officer “may seize any property which may be alleged or suspected to have been stolen, or which may be found under circumstances which create suspicion of the commission of any offence”, and must report the seizure to the Magistrate (BNSS section 106). High Courts have taken different views on whether section 106 can be used to freeze bank accounts. Where an investigating officer has reason to believe that property is derived from a criminal activity, he may, with the approval of the Superintendent or Commissioner of Police, apply to the court for its attachment; the court may issue a fourteen-day show-cause notice, or attach on an interim basis without notice where notice “would defeat the object of attachment or seizure” (section 107(1) to (5)).
- Distribution to victims: “If the Court or the Magistrate finds the attached or seized properties to be the proceeds of crime, the Court or the Magistrate shall by order direct the District Magistrate to rateably distribute such proceeds of crime to the persons who are affected by such crime” (section 107(6)). The Sanhita does not define “rateably”; in ordinary usage it means in proportion, which matters where several victims are affected. The District Magistrate must distribute within sixty days, and unclaimed or surplus proceeds are forfeited to the Government (section 107(7) and (8)).
- Delivery by a Magistrate: where seized property is not produced before a court during an inquiry or trial, the Magistrate “may make such order as he thinks fit respecting the disposal of such property or the delivery of such property to the person entitled to the possession thereof” (section 503). Courts may also make orders for custody and delivery of property produced before them during and at the end of a case (sections 497 and 498).
- Lok Adalats in Telangana: in releases of 13 September 2025, 22 December 2025 and 28 March 2026, the Bureau reported facilitating refunds to cybercrime victims through Lok Adalat sessions, in coordination with the Telangana State Legal Services Authority, banks, digital payment service providers and the police, and the December 2025 and March 2026 releases say the framework enables coordination “to accelerate refunds in cases involving UPI frauds, investment scams, impersonation frauds, and other digital offences”.
- Bank refund rules: the RBI’s 2017 circular limiting a customer’s liability (addressed to scheduled commercial banks, including regional rural banks, and to small finance and payments banks; for commercial banks other than small finance, payments, regional rural and local area banks, its instructions are now consolidated in the RBI’s 2025 directions) applies to unauthorised electronic banking transactions, and where a customer shared payment credentials, “the customer will bear the entire loss until he reports the unauthorised transaction to the bank”. The RBI’s directions of 24 June 2026, for commercial banks other than small finance, payments, regional rural and local area banks, apply to transactions on or after 1 January 2027 and treat as fraudulent a transaction “executed by the customer by granting approval under coercion or duress from the third-party”. Neither text expressly mentions a payment the customer authorised himself because of a false investment promise.
None of these provisions promises that money will be traced, frozen or returned in a particular case. See our guide on bank accounts frozen after a cyber complaint.
SEBI complaints and what they do not cover
- SCORES: SEBI’s complaint platform is for grievances “against (a) listed company, (b) registered intermediary or (c) market infrastructure institution”, and the investor must first take the grievance to the entity concerned.
- Not for unregistered operators: SEBI has said that for disputes arising from investing or trading through “un-registered intermediaries/ web applications/ platforms / apps”, “none of the following recourses will be available to investors”, including investor protection under SEBI or the exchanges, SCORES, the exchanges’ grievance redressal, and the online dispute resolution mechanism.
- Reporting to SEBI: SEBI invites the public “to share details of any unregistered entities/ platforms offering advisory services on securities via the Market Intelligence (MI) portal”. Information given to SEBI in this way is market intelligence; SEBI does not handle it as a complaint through SCORES.
- Where SCORES may apply: if your grievance is against a SEBI-registered broker or adviser itself, SEBI’s circular of 20 September 2023 says the complaint is first taken to that entity and may then be lodged on SCORES within one year from the cause of action (SEBI may reject a later one), and the entity is to resolve it and upload an action taken report within 21 calendar days. Some matters, such as those pending in a court, are not dealt with through SCORES.
If your bank account was used
Scam money is moved through “mule” accounts. The Indian Cybercrime Coordination Centre “has advised citizens not to sell/rent their bank accounts/company registration certificate/Udhyam Aadhaar Registration certificate to anyone. Illicit funds deposited in such bank accounts can lead to legal consequences, including arrest.” It describes mule accounts as “scouted through social media; majorly from Telegram and Facebook” and used to collect money for “fake investment scam sites” and “fake stock trading platforms”.
The Bureau has warned the public “not to get involved in converting hard cash into crypto, as it amounts to money laundering”, and that offers of commission “may lead to criminal charges”. Under the BNS, property obtained by cheating is “stolen property”, and dishonestly receiving or retaining it “knowing or having reason to believe the same to be stolen property” is punishable with up to three years, or fine, or both (section 317(1) and (2)). Whether a particular account holder is liable depends on the facts. If your account has been frozen, see our guide on frozen bank accounts.
Related guides: cyber crime, the first 48 hours after a cyber fraud, frozen bank accounts, digital arrest scams and loan app harassment.
Frequently asked questions
I lost money to a trading app or WhatsApp stock group. What should I do first?
Call the National Cyber Crime Helpline 1930 and complete the complaint on cybercrime.gov.in within 24 hours using the acknowledgement number, notify your bank at the earliest, and keep the transaction IDs, bank statements, chats, app links and the scammer’s numbers and IDs. The helpline facilitates prompt reporting and, where possible, freezing of fraudulent transactions.
Will I get my money back?
No official text promises it. The Government says the 1930 helpline facilitates prompt reporting and, where possible, freezing of fraudulent transactions; police can apply for attachment of the proceeds of crime, and if the court finds the money to be proceeds of crime it directs the District Magistrate to distribute it rateably to the victims (BNSS section 107); and the Telangana Cyber Security Bureau has reported facilitating refunds through Lok Adalat sessions in cases that include investment scams.
Will my bank refund money I transferred myself?
The RBI’s 2017 circular limited a customer’s liability for unauthorised transactions, and its rules for commercial banks are now in the RBI’s 2025 directions. The RBI’s directions of 24 June 2026 for commercial banks other than small finance, payments, regional rural and local area banks, for transactions on or after 1 January 2027, also cover a payment the customer approved under coercion or duress. Neither expressly mentions a payment the customer authorised himself because of a false investment promise.
How do I check whether a stock adviser or tips group is genuine?
Search SEBI’s lists of registered investment advisers and research analysts, and then check that the phone number, app or payment account really belongs to that registered entity, since SEBI warns of groups impersonating registered firms. SEBI has directed investor-facing registered intermediaries to accept UPI payments from individual investors only through a “@valid” UPI handle, and a UPI ID can be checked with SEBI Check.
Can I complain to SEBI through SCORES about a fake trading app?
SEBI has said SCORES and the exchanges’ grievance and dispute resolution mechanisms are not available for disputes with unregistered intermediaries, platforms or apps. You can report such an entity on SEBI’s Market Intelligence portal, which gives SEBI information but is not a complaint for recovering money. Report the fraud itself to 1930 and cybercrime.gov.in.
Is a forex trading platform legal if it is not on the RBI Alert List?
Not necessarily. The RBI says the Alert List is not exhaustive and an entity not on it should not be assumed to be authorised, and that authorisation status can be ascertained from its lists of authorised persons and authorised electronic trading platforms.
Where do I complain in Hyderabad?
Report to 1930 and cybercrime.gov.in. For areas under the Hyderabad City Police, its Cyber Crimes Police Station says victims who lost more than Rs 1 lakh should contact it on 8712666346, and those who lost less should contact their local police station. If you live outside the Hyderabad City Police area, the Telangana Police website links to the other commissionerates and to the district police websites, and the Cyberabad, Malkajgiri and Future City websites each describe their own cyber crime unit.
Someone offered me money to use my bank account. Is that a problem?
The Indian Cybercrime Coordination Centre advises citizens not to sell or rent their bank accounts to anyone, and says illicit funds deposited in such accounts can lead to legal consequences, including arrest.
For a discussion about an investment or trading fraud with Musab Hashmi & Associates, call +91 89771 24916 or send an enquiry. Do not include identity numbers, passwords or copies of documents in the first message.
General legal information, not legal advice. Checked on 27 October 2026 against the Bharatiya Nyaya Sanhita, 2023, the Bharatiya Nagarik Suraksha Sanhita, 2023, the Information Technology Act, 2000 as amended in 2008, the SEBI (Investment Advisers) Regulations, 2013 (SEBI text amended up to 25 November 2025), the SEBI (Research Analysts) Regulations, 2014 and the SEBI (Intermediaries) Regulations, 2008 (SEBI texts amended up to 10 October 2026), SEBI’s SCORES circular of 20 September 2023, SEBI’s press release of 11 April 2025 and Annual Report 2025-26, the RBI’s press releases of 3 February 2022 and 7 September 2022 and its Alert List, the RBI circular of 6 July 2017 and directions of 24 June 2026, the Telangana Cyber Security Bureau’s published descriptions and releases, the Hyderabad City Police Cyber Crimes Police Station page, the Ministry of Home Affairs releases of 6 December 2023 and 28 October 2024 and its Rajya Sabha reply of 22 July 2026, the PIB backgrounder “Curbing Cyber Frauds in Digital India” of 7 October 2025, SEBI’s investor-site poster on fake trading apps, SEBI’s lists of registered intermediaries and the SCORES portal, the Telangana Police list of commissionerates, the official texts of the orders of the Delhi High Court (16 January 2026) and the Madhya Pradesh High Court (27 July 2026), an Indian Cybercrime Coordination Centre FAQ page saved on 25 October 2026, and archived copies of National Cyber Crime Reporting Portal pages of 23 September and 8 October 2026.