AI-powered investment fraud network defrauds over 3,000 investors in India
A network of fraudsters operated fake investment companies using AI-powered prediction platforms and Ponzi schemes to defraud over 3,000 investors across India, collecting Rs 850.59 crore between 2022 and 2025. The Cyberabad police arrested two key suspects, Gaddam Venugopal and Shreyas Paul, after discovering they promised fabricated 7% monthly returns through fake AI software and deleted evidence to evade accountability.
What happened
An organised financial fraud network operated under companies including A.V. Solutions, Srinivas Analytics Pvt. Ltd., IIT Capital Technologies, and Trade Bulls Technology Pvt. Ltd., duping 3,164 victims across multiple states between 2022 and 2025 through AI-powered investment platforms and Ponzi-style schemes.
The accused collected Rs 850.59 crore and retained Rs 232 crore illegally after returning Rs 618.23 crore. They promised 7% monthly returns through fake AI-based predictions and stock market prediction software, using fake SEBI, NSE, and BSE registration numbers to create false credibility.
The network employed more than 20 consultants, agents, technical developers and website administrators across major cities, operating multiple websites through proxy domain registrations with privacy shields and hosting on Amazon Web Services to conceal identities. Funds were funneled through 21 bank accounts using layering techniques and laundered into real estate, gold, luxury vehicles, and international channels including Dubai-based operations.
Reported impact
Middle-class families, working professionals, and retired individuals were targeted and lured with referral-based recruitment schemes and fabricated dashboards displaying non-existent profits. The fraud left hundreds of families devastated, with retirement savings and education funds wiped out, and many victims driven into debt.
The accused systematically deleted digital records, threatened victims who tried to complain, and shut down websites under regulatory scrutiny.
Index analysis
The fraudulent AI system generated fabricated stock market predictions and trading dashboards designed to deceive investors into believing they were receiving steady monthly returns, when in reality no legitimate investment activity was occurring.
Governance controls
The accused operated through a complex network of front companies and used technical obfuscation methods including privacy-shielded domain registrations and AWS hosting to evade detection. Police seized high-end vehicles, electronic devices, financial documents, property papers and a database of 3,164 victims as part of the investigation.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.