Hyderabad: Two private workers from the city have approached the Hyderabad Central Crime Station (CCS) police, alleging that fraudsters operating a Multi-Level Marketing (MLM) racket duped them into transferring over ₹60,000 each under the guise of an investment scheme. After making the investments, the victims realized they had fallen prey to an MLM fraud. When the fraudsters refused to return the money, they sought police intervention. Separate cases have been registered.
Modus Operandi of the Fraud
According to police, the victims were lured through personal contacts and WhatsApp conversations by individuals posing as business associates who offered high-return investment opportunities under an organization named Ignite. “The accused convinced the victims to register on an online portal, Ignite, and purchase product packages in US dollars, promising substantial profits and commissions when they refer others to register on the site,” said a CCS official.
First Complaint: 25-Year-Old Woman from Manikonda
In the first complaint, a 25-year-old private worker from Manikonda met an accused, Riyaz, at a mall in Panjagutta on June 2. Claiming to represent a private company with lucrative investment opportunities, Riyaz made her speak to his associate, Irfan, who claimed to operate from Dubai for Ignite company. Irfan convinced her to invest ₹63,899 in Ignite’s investment scheme. After she transferred over ₹63,000, Irfan provided her access credentials to the Ignite portal.
Second Complaint: 32-Year-Old Man from Chandanagar
In a similar incident, a 32-year-old man from Chandanagar claimed that he lost ₹61,639 after being induced to make multiple payments towards investment in Ignite company on June 2. Both victims stated that after registration, the fraudsters told them that money could be made only by referring more people to register.
Police Action and Investigation
Upon realizing the MLM fraud, the victims approached the Panjagutta and SR Nagar police stations, respectively, and separate FIRs were registered on June 5. Both cases have been transferred to the Central Crime Station (CCS) and were re-registered on June 6. The police are investigating the matter further.
