Investors across India are increasingly falling prey to sophisticated online scams that use fake trading apps, cloned platforms, and AI-generated deepfake videos to steal money. Fraudsters are exploiting technology to create highly convincing schemes that look legitimate, making it harder for even cautious users to detect deception.
Authorities and cybersecurity experts warn that scammers are now combining mobile apps, social media promotions, and manipulated videos of well-known personalities to build trust and lure people into depositing funds. Once money is transferred, victims often find withdrawals blocked or accounts suddenly inaccessible.
The growing trend highlights how digital financial fraud is becoming more advanced — and more dangerous.
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How Fake Trading Apps Operate
One of the most common tactics involves creating fraudulent trading or investment apps that resemble genuine platforms. These apps often feature professional designs, dashboards, and customer support chats to appear credible.
After onboarding users, scammers show fake profits or inflated returns on the app interface to encourage larger investments. Victims are persuaded to add more money after seeing what looks like steady growth.
However, when users try to withdraw funds, the system either delays payments, demands additional “fees,” or completely blocks access. By the time victims realise the fraud, the money has already been siphoned off.
Such apps are typically promoted through messaging apps, social media ads, or unknown links shared by strangers posing as financial advisors.
Deepfake Videos Used to Build Trust
Another worrying development is the use of deepfake technology. Scammers are generating realistic videos that appear to show celebrities, business leaders, or financial experts endorsing specific investment platforms.
These videos manipulate facial expressions and voices using artificial intelligence, making them look authentic. Many victims trust these endorsements and invest without independently verifying the information.
Experts caution that no genuine public figure promotes trading schemes through random online videos or private messages, and such content should always be treated with suspicion.
Deepfakes are especially effective because they exploit people’s trust in recognisable faces and authority figures.
Why Investors Are Falling Victim
The success of these scams often comes down to psychology. Fraudsters promise:
- guaranteed or unusually high returns
- low risk investments
- limited-time opportunities
- quick profits with minimal effort
These claims appeal to emotions rather than logic. In reality, legitimate financial markets never guarantee profits, and any offer that sounds too good to be true usually is.
With increasing smartphone use and digital payments, more first-time investors are entering online trading spaces, making them prime targets for such fraud.
How to Stay Safe
Experts recommend several simple precautions to avoid becoming a victim:
- Always verify whether a trading platform or app is registered with a financial regulator such as SEBI before investing. Download apps only from official app stores and confirm the developer details.
- Do not trust videos or endorsements blindly. Cross-check information through official company websites or verified accounts.
- Avoid clicking on unknown links or joining investment groups shared through WhatsApp or social media. Never share OTPs, passwords, or banking details with anyone claiming to offer investment help.
- If a platform promises guaranteed profits or pressures you to invest immediately, treat it as a red flag.
- Victims or suspicious users should report incidents to cybercrime authorities promptly so action can be taken before more people are affected.
Growing Threat in the Digital Age
As financial services move online, fraudsters are rapidly adapting their methods. Fake trading apps and deepfake endorsements represent a new wave of cyber-enabled scams that combine technology with social engineering.
Awareness, verification, and caution remain the strongest defence. Experts stress that taking a few minutes to check authenticity can prevent devastating financial losses.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
