A major cyber fraud case involving an alleged fake stock trading investment scheme has come to light in Navi Mumbai, where a scrap dealer was allegedly cheated of ₹2.3 crore after being promised massive returns from stock market investments. Investigators say the victim was initially paid genuine profits to gain his confidence before being persuaded to invest increasingly larger amounts through a fraudulent trading platform. The scam came to light when he was unable to withdraw the ₹11 crore profit that was being displayed on the app. More than a year after the incident, the Navi Mumbai Cyber Police have registered an FIR and launched an investigation.
Social Media Arbitrages and Counterfeit Brokerage Deployments
According to police, the 43-year-old complainant is a native of Kolhapur who was operating his business from the Rabale MIDC area at the time of the incident. In his complaint, he stated that in March 2025, while watching reels on Facebook, he came across an advertisement from an investment company that claimed investors could earn exceptionally high returns through stock market trading.
Shortly after interacting with the advertisement, the victim was contacted on WhatsApp by a woman who introduced herself as an employee of the company and claimed to be the assistant of a senior stock market consultant. After discussing investment opportunities, the complainant was added to a WhatsApp group where the purported expert regularly shared stock trading advice and investment recommendations.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Micro-Withdrawal Arbitrages and Simulated Profit Projections
Investigators said the victim was later sent an approval form via email and a link to download a mobile trading application. Following the instructions provided, he made an initial investment. Within a few weeks, the app showed a profit of approximately ₹2.7 lakh. When he requested a withdrawal, the amount was allegedly transferred to his bank account, convincing him that the platform was genuine.
Having gained confidence in the scheme, the complainant gradually increased his investments and transferred funds to multiple bank accounts provided by the alleged fraudsters. Police said that by the end of April 2025, he had invested a total of ₹2.3 crore. As the investments increased, the app continued to display rapidly growing returns, eventually showing a profit of nearly ₹11 crore.
Exit Barrier Deceptions and Tax Liability Extortions
However, when the victim attempted to withdraw the larger amount, no funds were credited to his account. According to the complaint, he was then told that additional payments were required to cover taxes and other charges before the profits could be released. It was at this stage that he realised he had likely fallen victim to a sophisticated investment scam.
The victim subsequently filed a complaint through the National Cyber Crime Reporting Portal. After examining the allegations, the Navi Mumbai Cyber Police registered a case under provisions of the Bharatiya Nyaya Sanhita (BNS) relating to cheating and criminal breach of trust, along with relevant sections of the Information Technology Act.
Delayed Detection Windows and Mule Account Tracking
Investigators believe that because the fraud occurred more than a year ago, the money may have already been routed through multiple bank accounts. Police are now tracing the financial trail and collecting banking records, transaction details and digital evidence to identify the individuals behind the operation.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that investment fraudsters often use a calculated strategy of paying small profits initially to build credibility and gain the victim’s trust. Once confidence is established, victims are encouraged to make larger investments through fake trading applications, WhatsApp groups and individuals posing as financial experts. He advised investors to use only authorised and regulated investment platforms and to remain cautious of schemes promising unusually high returns.
Police officials said the investigation is focused on tracking the movement of funds and identifying the bank accounts involved. Authorities believe further scrutiny of financial transactions and digital communications may reveal additional members of the alleged cyber investment syndicate and expose the broader network behind the fraud.
