PUDUCHERRY: Puducherry Cyber Crime Police have arrested a 32-year-old engineer, Ashwin Vignesh, from Neelankarai, Chennai, for allegedly duping over 1,000 people across India in a fake AI-based stock trading software scam amounting to Rs 8.5 crore. In Puducherry alone, seven complaints were registered against the accused.
The arrest was made following a complaint on May 15, 2025, by a Puducherry resident, Jayaraj, who alleged he was cheated by a company called "Algo Trading." The firm had advertised on social media about an AI-driven stock trading application priced at Rs 40,000, claiming it would guide users in making high-return investments. Jayaraj paid the amount in three instalments—Rs 10,000, Rs 20,000, and Rs 10,000—but never received the software or any response thereafter.
Briefing the media, Senior Superintendent of Police (Crime and Intelligence) Narra Chaitanya and Superintendent of Police Bhaskaran said investigations traced the fraudulent operation to the Velachery and Nandanam areas in Chennai, where Algo Trading, also referred to as Alco Trading, was reportedly operating .. Analysis of online data and records on the National Cyber Crime Reporting Portal (NCRP) revealed over 1,000 similar complaints nationwide.
Victims were reportedly misled with false promises of earning between Rs 3,000 and Rs 6,000 daily for an investment of Rs 1 lakh. The company collected between Rs 30,000 and Rs 50,000 from each person without delivering the promised application.
A special cyber crime team arrested Ashwin Vignesh from the Velachery office on Sunday morning. During the raid, 14 laptops, six mobile phones, a luxury car, Rs 7.3 lakh in cash, and other digital equipment were seized. Investigators found that Vignesh used multiple bank accounts—his own, his wife’s, and those of friends—to route the defrauded money. All related accounts have been frozen.
Vignesh, who also holds an MBA, reportedly turned to fraud after quitting his low-paying job with a Bengaluru-based firm. Police are now working to arrest his associates, including employees and those who provided their bank accounts for the scam.
Authorities have advised the public to stay vigilant and verify credentials of companies through the toll-free cyber helpline 1930 or consult local cyber police to avoid falling prey to such financial frauds.