In a chilling reminder of how sophisticated cyber frauds are evolving, a 52-year-old Mumbai resident lost ₹1.44 crore to a fake trading platform posing as part of a reputed stock exchange group. Enticed by seemingly legitimate WhatsApp trading tips and dazzling app-based profits, the victim’s dream of striking it rich turned into a cautionary tale of manipulation, impersonation, and digital deceit.
The Lure of Profit: How a Digital Trap Was Set
In early March, the complainant, a businessman from Mumbai, was added to a WhatsApp group named 986-ASK-Elite Wealth Traders. The group appeared professional and promising, providing regular tips on stock market investments. Just two days later, a woman identifying herself as Riya Rawat introduced herself over WhatsApp. She claimed to be a representative of ASK Stock Exchange Group and urged him to open a trading account on an app named ASK-IATOP—a name suspiciously designed to mimic legitimate investment platforms.
The victim’s initial investment of ₹10,000 showed immediate and exaggerated returns on the app interface, reinforcing trust in the platform. Over the next two months, between March 10 and May 10, he made 20 transactions amounting to ₹1.05 crore. Encouraged by what appeared to be skyrocketing profits—his account on the app showed a notional gain of ₹16.75 crore—the man believed he had unlocked a jackpot.
But when he attempted to withdraw the amount, the nightmare began.
The Phantom Profits and the “Service Charges” Trap
The victim was told he must first pay a 10% service fee—a massive ₹10 lakh—before accessing his supposed profits. Desperate not to lose his windfall, he complied. But the money didn’t come. Instead, the fraudsters came up with another ruse: a ₹3.68 lakh fine to resolve a technical “problem.” Again, he paid. And again, the funds were locked.
Sensing something amiss after being told to pay an additional ₹5 lakh, the man refused. By then, he had already lost ₹1.44 crore. On May 10, he dialed 1930, the national cybercrime helpline, to report the scam. His complaint triggered an investigation by Mumbai’s Central Cyber Police.
Police Investigation, FIR and Legal Charges
On June 3, the police officially registered a case under several sections of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act, reflecting the complexity and severity of the fraud. The FIR invokes:
- Section 318(4) (Cheating),
- 319(2) (Cheating by personation),
- 336(2) and 336(3) (Forgery and intent to use forged electronic documents),
- 338 (Forging valuable security),
- 340(2) (Using a forged document as genuine),
- 3(5) (Common intention),
along with Section 66D of the IT Act (cheating by personation using computer resources).
No arrests have been made yet, but officials believe the fraud may be part of a broader network operating similar investment scams targeting urban professionals through social media and encrypted messaging apps.
Cybercrime officials say this case is symptomatic of a broader epidemic of digital investment scams preying on India’s rising class of digital-savvy, high-risk retail investors. Meanwhile, cybersecurity experts urge citizens to verify the authenticity of trading apps and avoid financial decisions based solely on social media promotions or unsolicited WhatsApp messages. As fintech adoption rises in India, so does the sophistication of fraud.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.