Investment scams continue to rise in India, with many individuals reporting losses from fraudulent schemes that promise high returns. A recent case involved an army doctor from Pune who lost his ₹1.2 crore to cyber criminals using fraudulent trading schemes.
How does the scam start?
The scam, as detailed in the First Information Report (FIR) filed by the victim and reported The Indian Express, which began in mid-July, the doctor received a link inviting him to join a WhatsApp group. Upon joining, he met the group administrators promoting high returns on investments in the stock market. Believing in the legitimacy of the group, the doctor joined the discussion and was convinced to download a trading app.
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However, the app turned out to be a fraudulent platform designed to steal money. Over a period of about 40 days, the doctor completed nearly 35 transactions amounting to ₹1.22 crore, transferring money to various fake bank accounts as per the app’s instructions. The transactions were presented as investments, with the platform displaying inflated returns suggesting income. ₹10.26 crore. The fraudsters have demanded a huge sum of money. ₹45 lakh from the doctor to repay the money, threatening to withhold his salary if he refused.
Suspicious of the situation, the doctor asked for the registered address of the exchange. The address provided in New Delhi was found to be fake after investigation. Realizing that he had been duped, the victim filed a complaint with the Cyber Crime helpline, which led to an FIR with the Pune City Cyber Police Station.
The incident highlights a broader trend of online fraud, where scammers are using social media platforms such as WhatsApp and Telegram to lure victims with promises of high investment returns. Earlier this year, the Securities and Exchange Board of India (SEBI) issued an advisory noting the growing use of such platforms by scammers posing as SEBI-registered Foreign Portfolio Investors and offering fake trading applications.
What steps can be taken to avoid such scams?
SEBI warns that these fraudulent apps often promise exclusive benefits such as buying stocks, registering for IPOs and institutional account privileges without requiring a formal trading account. Fraudsters often use mobile numbers registered under fake names to remain anonymous and avoid detection.
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To protect themselves from such scams, people should:
- Source Verification: Confirm the legitimacy of the investment opportunity through reliable sources before committing to invest.
- Beware of strange links: Avoid clicking on links from unsolicited messages, especially those advertising high-profit advertisements.
- Protect personal information: Be cautious when sharing personal and financial information online, especially with people you don’t know.
- Stay informed: Learn about common scams and fraud to recognize and avoid suspicious behavior.
