Online gaming and trading apps have become the new tools of cyber fraud in India. Rajasthan Police has warned that scammers are using social media to lure victims with fake promises of high returns, only to trap them in a spiral of manipulated losses and illegal charges. Scammers are exploiting online gaming and fake trading platforms to trap unsuspecting users into losing their life savings.
‘Win First, Lose Forever’: The Manipulative Design Behind Gaming Frauds
In an alarming evolution of cybercrime tactics, criminals across India are now exploiting online gaming apps and fake investment platforms to orchestrate sophisticated financial scams. According to the Cyber Crime Branch of Rajasthan Police, social media platforms, particularly WhatsApp, Telegram, and Facebook, are being used to lure users into these traps, masked as opportunities for fun or easy profit.
The scam unfolds in a two-phase pattern: new users are initially rewarded with small wins and fast payouts after playing seemingly legitimate games or investing minimal sums in fake foreign exchange or share trading apps. These early victories are designed to build trust.
SP (Cyber Crime) Shantanu Kumar stated that once victims get hooked and start investing larger amounts, the game changes, literally. They begin losing repeatedly. The system is rigged. By then, the emotional and financial investment is too high for most to back out.
FCRF x CERT-In Roll Out National Cyber Crisis Management Course to Prepare India’s Digital Defenders
From Foreign Exchange to Fantasy Losses: How the Web of Fraud Widens
Beyond games, scammers are also promoting phoney forex and crypto trading apps promising exaggerated returns on small investments. Many victims report that after initial successful withdrawals, their accounts get locked or delayed, and new charges, often in the name of foreign taxes, withdrawal fees, or KYC compliance, are imposed.
In several cases, victims tried withdrawing large sums only to be told they needed to pay “processing fees” or “international levies.” One retired teacher from Kota reportedly lost ₹9 lakh trying to recover his investment from a “gaming-cum-trading” app promoted via a Facebook ad.
Public Advisories, Police Crackdowns, and Digital Caution Urged
In response to rising complaints, the Rajasthan Police has issued a public advisory urging citizens to avoid unverified apps and websites promising unrealistic returns. The advisory recommends:
- Avoiding unregistered gaming and investment platforms
- Never transferring large sums via UPI to unknown parties
- Checking for verified apps on official platforms like Google Play Store or SEBI/ RBI sites
- Reporting suspicious activity to Cyber Helpline 1930 or cybercrime.gov.in
Authorities are also tracking international linkages of these apps, many of which are believed to be operated from Southeast Asia, with technical support from local Indian intermediaries. Law enforcement agencies are now coordinating with CERT-In, Interpol, and fintech watchdogs to shut down illegal platforms and trace cross-border money trails. But police admit that low digital literacy, greed, and easy access to payment gateways are making these crimes harder to contain.
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.