Mumbai: Fake stock market online trading scam is new con in town

A 49-year-old businessman filed a case after being duped of over R40 lakh. Representation Pic

After the crackdown on loan app scams and ‘like and earn' schemes, scammers are now turning to online stock market fraud. In the past three months, the city's crime branch cyber cell registered dozens of cases, with more reported to local police stations, especially for amounts under Rs 10 lakh. Suspected to operate from Dubai, similar to the ‘like and earn' scam, these fraudsters are targeting Indians nationwide. They're using social media ads to attract victims, promising to double investments in fraudulent stock market trading schemes. SEBI recently warned against investing through unregistered apps after receiving numerous complaints.

A 49-year-old Andheri businessman, having lost Rs 42 lakh this month, lodged a cyber cell case. According to his complaint, he was watching reels on Instagram promoting share market investments and the potential for high profits. "I expressed interest in the investment and began communicating with them. The individual introduced me to three companies: Carson Wealth, Baring Capital, and Pantheon Venture. Subsequently, I was added to four different WhatsApp groups of these companies where investment tips were shared. I started investing with my DMAT account based on their recommendations and initially saw some profits, which led me to trust them," the FIR stated.

Victims targeted through social media receive ads for free trading tips. Representation Pic

"Instructed to use foreign institutional investors' accounts, I complied by downloading apps from CHC-SES, FUYA, PT companies, and transferring funds for trading. Despite reflecting in the apps, the Rs 42 lakh didn't transfer to the DMAT account. On realising it was a scam, I filed a complaint with the cyber police," he added. Another Andheri businessman filed a cyber cell complaint, losing Rs 19.5 lakh in an online stock market scam. He discovered the fraudulent scheme through a Facebook reels, leading him to a WhatsApp group named ‘YH-C Master Your Own Destiny SEQUOIA'.

Also Read: Mumbai Police traces elusive drug dealer from Dongri in Ahmedabad via Instagram post

"Discussions in the group revolved around institutional trading. After reading the discussions, I believed that investing in BSE IPO and shares through this group could yield significant profits," the complainant stated in his FIR. The complainant further alleged that the group's admin, identified as Juhi Nisha, provided tips and also contacted him via WhatsApp, assuring him of substantial profits if the shared tips were utilised effectively.

"Later, she forwarded me the SEQUOIA Capital Primary Market Trading Account Application Form and instructed me to fill it out, requiring my banking details, KYC information, etc. A few days later, she informed me that my application was accepted and sent me a link for trading and placing orders." As per the complaint he kept transferring the money to the stock market account provided by the scammer and he realised it was a fraud only after investing Rs 19.5 lakh.

On Monday, cyber police arrested Ketab Biswas, 37, in Santacruz for defrauding a 72-year-old senior citizen of Rs 3.69 crore in a stock market scam. The Mumbai cyber unit recovered Rs 2.20 crore after the arrest. The victim was lured into a WhatsApp group offering stock market tips. "Most of the victims are lured after getting added to the WhatsApp group where others share screenshots of making huge profits based on the tips which attract new members. We are working on the network as different people are playing different roles and we suspect that it is being operated from abroad." an officer of the cyber cell said.

What is the scam

Victims targeted through social media receive ads for free trading tips. Upon engagement, they share details and join WhatsApp groups. Fraudsters, posing as experts, convince them to invest in a fake trading site linked to legitimate stock market sites. Victims deposit money, follow fraudster tips, and eventually face withdrawal hurdles, leading to financial losses.

Rs 3.69 cr
The amount a senior citizen was duped of

Rs 42 Lakh
Amount an Andheri businessman was duped out of