A 47-year-old businessman from Tankara taluka in Gujarat’s Morbi district has allegedly lost ₹84.80 lakh in an online stock trading scam involving a WhatsApp investment group and a fraudulent mobile application. Police have registered a case against the group administrators and associated bank account holders.
How Did the Fraud Begin?
According to a complaint filed by Vignesh Parmar, a pesticide manufacturer, the alleged fraud began in February 2025 when an unknown person added him to a WhatsApp group offering stock market investment advice. The group’s administrators and members regularly shared trading recommendations, investment opportunities and promises of substantial returns to encourage participants to invest money.
Parmar was subsequently directed to download a mobile application promoted within the group. The application displayed investment opportunities and apparent trading profits, creating the impression that money deposited through the platform was generating substantial returns. Shortly after making his initial investments, Parmar reportedly saw significant gains reflected in the application, which encouraged him to continue transferring money.
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How Was ₹84.80 Lakh Transferred?
The complaint states that the group administrators repeatedly persuaded Parmar to increase his investments by presenting opportunities for higher returns. Between February 17 and March 12, 2025, he transferred a total of ₹84.80 lakh through 21 separate transactions to bank accounts maintained with multiple commercial banks.
The payments were made over several weeks as Parmar continued following the investment instructions shared through the messaging group. Meanwhile, the application allegedly displayed growing profits, reinforcing the impression that the investments were performing well. However, the gains shown on the platform were not subsequently paid to him.
When Did He Discover the Scam?
The suspected fraud became apparent when Parmar attempted to withdraw his invested money and the profits displayed in the application. Despite his requests, the operators allegedly failed to return either the original investment or the purported earnings.
The situation worsened when the mobile application and WhatsApp group were subsequently shut down, leaving Parmar unable to access the platform through which he had been conducting transactions. The disappearance of these communication channels prompted him to seek police assistance over the money he had transferred.
What Action Have Police Taken?
Parmar initially reported the incident through the national cybercrime helpline and the National Cyber Crime Reporting Portal (NCCRP). Following preliminary inquiries, Morbi Cyber Crime Police registered a First Information Report on Monday against the administrators of the WhatsApp group and the bank account holders allegedly connected to the transactions.
The complaint identifies the investment group, the mobile application and the receiving bank accounts as key elements of the suspected fraud. The available information does not establish whether any money has been recovered or whether the individuals operating the scheme have been identified or arrested.
The420 Insight: Beware of Fake Trading Profits
The case highlights how fraudulent investment groups can use messaging platforms and applications displaying apparent profits to persuade individuals to transfer substantial amounts. Investors should independently verify trading platforms and avoid relying on returns displayed in unfamiliar applications. Difficulty withdrawing funds, particularly when followed by the disappearance of a platform, is a serious warning sign of investment fraud.
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