MUMBAI: A 58-year-old businessman from Matunga, who owns a chain of watch retail stores, was allegedly defrauded of ₹8.75 crore through a foreign exchange trading scam operated via a mobile application promoted on social media.
The fraud began on May 18 when the businessman was contacted on Facebook by a woman claiming to be an executive of a New York-based financial technology company. According to police, she encouraged him to download a forex trading app developed by her company and promised high returns. When the businessman expressed interest, he was added to a WhatsApp group where trading tips were regularly shared.
Unfamiliar with investment practices, the businessman involved his daughter and accountant, who were also added to the group. The woman provided a customer support number, which turned out to be fake.
Algoritha Security Launches ‘Make in India’ Cyber Lab for Educational Institutions
Money reflected as profit on the app but could never be withdrawn
The group members were asked to register accounts through a provided link and begin trading. Trusting the instructions, they made multiple transfers to various bank accounts between May 31 and July 8. During this period, ₹8.75 crore was transferred in 14 separate transactions.
The app continued to show growing profits, giving the impression of a legitimate trading platform. However, the deception became apparent in July, when the businessman received a message from an unknown number warning him of being cheated. The sender demanded a 10% commission on the invested amount in return for helping recover the funds.
When the businessman attempted to withdraw the shown profits, the app prompted additional payments under the guise of unlocking the gains. Sensing something was wrong, he refused the commission demand and approached the police on August 1.
An FIR was filed under sections 318 (cheating), 319 (personation), 336 (forgery), 338 (forgery of valuable documents), and 340 (forgery of electronic records) of the Bharatiya Nyaya Sanhita, along with relevant sections of the Information Technology Act. The investigation is ongoing, and efforts are underway to trace the money trail and the identities of the accused.