Hyderabad Tech Firm Director Loses Rs 5.56 Crore in Phony Salary Payout Scandal
Businessman Loses $760,000 to Phony Stipend Scheme
The Indian police have launched an investigation into a high-profile case of cyber-enabled financial crime.
Background
A prominent business owner in Hyderabad alleges that he was defrauded out of approximately $760,000 (Rs 5.56 crore) by individuals impersonating officials from a national cybersecurity organization.
Arjun presented himself as the director and South Regional Head of the National Information and Cyber Security Council (NICSC), which operates under the Union Ministry of Electronics and Information Technology. To gain Kumar’s trust, Arjun shared a professionally designed website, videos of certificate distribution programs, media coverage, and speeches.
The Scam
- Arjun claimed that NICSC had partnered with reputable organizations, including the Delhi Police and State Bank of India (SBI).
- He also promised that the council conducted cybersecurity training programs for students, offering internships and certificates upon completion.
- Students enrolling in the program were allegedly guaranteed government stipends after six months, provided they paid subscription fees.
Kumar was asked to invest approximately $760,000 in exchange for a Center of Excellence designation and the promise of government funding for establishing cybersecurity training laboratories. He was told that students would pay up to $15,000 each for training and login credentials. Kumar spent around $380,000 on setting up offices in Hyderabad and Bengaluru, as well as paying trainer salaries and operational expenses.
Aftermath
However, when none of the promised benefits materialized, Kumar realized he had been scammed and filed a complaint with the Central Crime Station police. An investigation has since been launched into the accounts and claims linked to the alleged scheme.
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