The Cybercrime Police in Hyderabad have successfully apprehended a 35-year-old man from Ghaziabad, Uttar Pradesh, in connection with a significant insurance fraud case. A Hyderabad resident was duped of a staggering ₹6,45,225 in the elaborate scheme.
The arrested individual, identified as Sharad Garg, played a crucial role by providing numerous ‘mule’ bank accounts that facilitated the nationwide fraud operation. An officer from the cybercrime unit confirmed Garg’s involvement.
Investigations reveal that Sharad Garg is implicated in at least six similar cases across India, with one registered in Telangana. Garg, who previously worked as a dealer in pan masala and mouth fresheners, allegedly resorted to these fraudulent activities to sustain an extravagant lifestyle.
According to the police, the case began when a 37-year-old Hyderabad man reported receiving a call from someone posing as Prashant Tripathi, a chief head officer from Max Life Insurance and Axis Bank. This imposter convinced the victim to ‘renew’ his insurance policy for the 2025–2026 term, prompting an initial UPI transfer of ₹2.50 lakh, believed to be an official transaction.
The fraudster continued to extract more money under various false pretenses, including ₹1.50 lakh for a ‘30% medical co-pay,’ ₹1,45,225 as a ‘12% 10(10D) tax,’ and an additional ₹1,00,000 for ‘NPCI charges.’ Despite repeated promises that ₹15,74,775 would be credited back to his account, the victim never received any funds.
Further investigation uncovered that in September 2025, Sharad Garg was introduced to two other Ghaziabad men, Munna and Sunil Kumar, who were orchestrating the wider insurance scam. Garg reportedly agreed to arrange mule bank accounts for them, receiving a 15% commission for his services. He subsequently opened and provided several accounts, including those under the names of Niraj Kumar Ojha and Deepak Kumar, which were then used to channel the illicit proceeds.
Police confirmed that the funds stolen from victims were deposited into these accounts, withdrawn, and then distributed among the fraudsters. Garg personally handled the cash withdrawals, delivering the money to Sunil Kumar after deducting his commission. The ill-gotten gains were reportedly spent on personal luxuries.
During the arrest, the Cybercrime team confiscated three mobile phones, four cheque books, two bank cards, a laptop, and two shell company stamps. Officials emphasized that public awareness and prompt reporting are vital in combating such sophisticated fraud networks.