Hyderabad: The menace of fake software companies is increasing year on year in the city. Most of these companies establish units in posh areas like Madhapur or Ameerpet to cheat students and techies by guaranteeing jobs and extracting money in return.

Mr Shyam Rao, a victim of the Prodigi scam, said that in all the cases, the fraudsters had initially established small and medium software companies and lured jobless software professionals and students with big salaries.

“The managements of these companies collect Rs 1 lakh to Rs 5 lakh on the pretext of training fees, refundable fees or inves-tments. They pay salaries for two or three months and create a crisis situation,” he said.

Mr R. Shyam Kumar, a software professional from LB Nagar, said, “Fake software companies are becoming the easiest way to earn money. If they are caught, they spend Rs 20,000 for bail as the police registers cases under IPC Section 420, for cheating.”

Another source said that cheats who had committed offences between 2000 and 2005 were behind the new gangs. “With their experience, the fraudsters are introducing new officers to continue the cheating. Some consultancies first offer jobs in big companies but then prolong the process. When the jobseeker puts pressure, they offer jobs in fake companies,” a source said.