600 duped of Rs 99 crore via fake trading app: Software engineer among three arrested

An ‘algo- trading’ app is different from other fintech apps in a way that it uses pre-set algorithms to determine patterns in the markets. The patterns determine price fluctuation, market sentiment and volume of the trade and the sell and buy stocks, cryptos and forex in bulk.

The fraud came to light after a resident of Paharganj in Central Delhi filed a complaint on the cyber crime portal alleging he had been scammed through a fake trading app, police said. Looking to make quick gains in the stock market, the complainant was recently added to a WhatsApp group operated by the accused, which guaranteed profits with ‘zero risk’. The callers introduced themselves as representatives of an “Algo-Trading” company, police said.

“Soon after, the man was persuaded to download ‘Trademakeralgo’ through a Google Play Store link. The app looked professional, displayed live trading dashboards, and even showed daily profits accumulating in his account. Encouraged by the apparent gains, he began depositing money through QR codes generated within the application,” said DCP (Central) Rohit Rajbir Singh.

Officers said that initially, the amounts were small — around Rs 10,000 transferred through multiple PhonePe transactions. But every time he attempted to withdraw the profits displayed on the app, fresh deposits were demanded under various pretexts such as “processing charges”, “tax clearance”, and “account activation”. Suspicious of the repeated demands, the complainant reported the matter on Cyber Helpline 1930.

As the money flowed in, it was allegedly routed through a network of mule bank accounts and distributed among different handlers involved in the operation, police said.

The first breakthrough in the case came in Bengaluru, where a police team traced and arrested 31-year-old Rathore on May 3. Investigators say Rathore was the technical brain behind the operation.

According to the police, Rathore developed and maintained both the fake mobile application and the fraudulent investment website. He also allegedly handled backend infrastructure, fabricated online reviews, and ensured the app remained operational on the Play Store using fake credentials, officers said.

During raids, led by inspector Yograj Dalal, police recovered laptops, mobile phones and a Mahindra Scorpio car suspected to have been purchased using proceeds of crime.

Further investigation led police teams to Sanawad in Madhya Pradesh, where co-accused Sudama and Rathod were apprehended on May 5. Investigators discovered that the duo was allegedly operating a makeshift call centre setup from the area, targeting victims across India through WhatsApp calls and messages.

“Female callers were deliberately employed to influence and emotionally manipulate male investors into trusting the platform and depositing money,” DCP Singh said.

Investigators identified nearly 636 victim accounts and over 14,232 transactions amounting to approximately Rs 99.77 crore routed through the platform, officers said.

“Sudama wanted to buy a cricket team in Madhya Pradesh. He also ended up buying a stake in ‘Sawariya Kings Khandwa’, a tennis cricket league in MP,” said an officer.