A 55-year-old IT engineer who was initially reluctant to invest in the stock market was allegedly trapped by cyber fraudsters who first deposited ₹5,400 into his bank account as an ‘advance’ to convince him that their trading platform was genuine.
Within a week, he transferred ₹67.94 lakh to accounts provided by the fraudsters. The fake trading platform showed a purported profit of ₹8.46 crore in his account. When he attempted to withdraw the money, he was asked to pay ₹1.17 crore as brokerage charges, which raised his suspicion.
How Did the Fraud Begin?
According to the complaint registered with the Pune Cyber Police, the fraud began in August. The victim was added to a WhatsApp group while searching online for information related to the stock market. Members of the group discussed shares and initial public offerings (IPOs).
During this period, a woman who claimed to be an agent of an investment company contacted him. She told him that the group provided investment recommendations on shares and IPOs and promised high returns on relatively small investments.
The victim initially remained a passive observer and did not participate in any investment. To gain his confidence, the fraudsters told him that ₹5,000 would be provided to help him make an initial investment. Subsequently, ₹5,400 was credited to his bank account.
The fact that actual money had been deposited convinced him that the people behind the platform were genuine. He then began following the investment recommendations shared in the WhatsApp group.
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How Did ₹67.94 Lakh Get Transferred?
According to the police, the fraudsters instructed him to transfer money to different bank accounts through the fake platform’s ‘customer service section’. On September 2, the victim made his first transfer of ₹9.70 lakh.
A few days later, he made two more transfers of ₹31 lakh and ₹27.24 lakh. His total investment eventually reached ₹67.94 lakh.
Meanwhile, the fake trading account displayed a balance of ₹8.46 crore, showing the amount as his investment gains. Seeing the rapidly increasing balance, the victim believed that his investments were generating substantial returns.
What Made the Victim Suspicious?
When he attempted to withdraw the money, the fraudsters gave him another condition. He was told that he would first have to deposit ₹1.17 crore as brokerage charges before the funds could be released.
This demand raised the victim’s suspicion. He was already trading through other stock-trading platforms and knew that such a procedure was not normally followed for withdrawing legitimate trading proceeds. He therefore decided to independently verify the company behind the platform.
On September 15, he visited the Mumbai office of the company whose name was allegedly misused by the fraudsters to operate the fake trading platform.
It was at the company’s office that the victim realised that the investment platform and the people communicating with him had no genuine connection with the company. He then understood that he had been defrauded.
He reported the matter through the cybercrime helpline and also approached the Pune Cyber Police, which registered a complaint. Investigators are examining the bank accounts and financial transactions allegedly used to receive the money transferred by the victim.
How Do Fake Trading Scams Build Trust?
The Pune and Pimpri-Chinchwad areas have witnessed growing concern over online stock-trading frauds in recent years. Fraudsters use several methods to lure potential victims, including WhatsApp groups, trading tips, online lectures, mobile applications and promises of unusually high returns within a short period.
Cybersecurity experts say that in such frauds, scammers may initially transfer a small amount of genuine money or show a small return to establish credibility. Once the victim develops confidence, they are encouraged to invest larger amounts.
Fake platforms then display rapidly increasing profits to persuade victims to put in more money. When victims attempt to withdraw their funds, scammers demand additional payments in the name of taxes, brokerage, processing charges or other fees, extending the fraud.
The420 Takeaway: A Profit on Screen Is Not Proof
Police have advised investors to independently verify any online trading platform and the company operating it before transferring money. Particular caution is necessary when investment recommendations are offered through WhatsApp or social media groups and unusually high returns are promised within a short period. A small initial payment or profit shown on an app should not be treated as proof that an investment platform is genuine.
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