What is the 'Trump Hotel Rental' scam that has duped hundreds of Indians?

An AI-generated video of US President Donald Trump urging you to invest in the Trump Hotel chain, promising a daily return of 3 per cent on your money—sounds like a golden opportunity, right?

Unfortunately, it’s a cleverly disguised cyberscam that has already tricked hundreds of Indians in the state of Karnataka.

As reported by The Times of India, over 800 people have fallen prey to this fraud, collectively losing crores of rupees. The scammers lured victims using the US President’s name, making the investment scheme seem trustworthy and legitimate.

Many of the duped investors are now seeking help from the police to recover their hard-earned money.

In this explainer, we break down how the scam worked, why it seemed convincing, and most importantly, how you can protect yourself from falling into similar traps.

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The modus operandi

The scam was orchestrated through a mobile app named ‘Trump Hotel Rental’, which has since been taken down. Fraudsters used it to lure users with assurances of quick and massive returns, sometimes promising over 100 per cent profits.

One such victim, a 38-year-old advocate, lost nearly Rs 6 lakh. He told The Indian Express that he stumbled upon a YouTube video in January 2024. It advertised an investment opportunity in “Donald Trump Hotel Rentals” and featured what appeared to be Donald Trump himself, offering high returns.

Curious and convinced, the man clicked the link in the video, which directed him to download an app. To get started, he was asked to fill out a form with his bank details, including his account number and IFSC code.

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His first deposit was a modest Rs 1,500, which activated his account and promised a daily return of 3 per cent. At first, the scheme delivered—he received small daily payouts, which made the offer look genuine.

“I was paid Rs 30 every day, and I was allowed to withdraw it after the total earnings crossed Rs 300. As the money was being paid on time and I could withdraw it, they started asking me to invest more. It started with Rs 5,000 and ended at Rs 1,00,000. Finally, they asked me to pay taxes to withdraw the money. But, they did not return it,” he said.

According to The Times of India, a dashboard on the app showed increasing “earnings” to the user for each completed task, such as writing company profiles. This made them believe the earnings were genuine. Encouraged by timely payments in the early stages, victims were gradually convinced to invest bigger sums, with assurances of doubling their money within 24 hours.

Over 800 people swindled

The scam wasn’t isolated to a single location. According to the police, it spread across Karnataka, affecting people in Bengaluru, Tumakuru, Mangaluru, Haveri, and other parts of the state.

In just five to six months, the fraud managed to dupe more than 800 people.

So far, over 200 victims, including the 38-year-old advocate, have come forward to file complaints. Together, they claim to have lost nearly Rs 2 crore through the fraudulent app.

Police said several individuals from government departments, law enforcement, and business backgrounds have also fallen prey to the scam. A case has been registered under the IT Act and Section 318(4) of the Bharatiya Nyaya Sanhita for cheating.

Further, what makes this scam particularly challenging is its high level of sophistication. A senior cybercrime officer in Bengaluru told website The420.in, “The fraudsters used sophisticated tools — AI, social engineering, and app-based redirection.”

He added that tracking the origin of the deepfake videos and dismantling the app’s backend is proving difficult, as it’s reportedly hosted on overseas servers.

Investigators are now working closely with national cyber agencies and tech companies to trace the digital infrastructure supporting the scam. However, the use of short-form deepfake videos, combined with frequent changes in the app’s name and host, has made the trail difficult to follow.

So far, the police have managed to freeze Rs 1.5 lakh in one of the bank accounts where victims’ money was routed.

“It has come to light that crores of rupees have been swindled across the country through fake links such as the Trump Hotel Rental scheme, which falsely promises to double your money. The public is urged to reject unknown links and remain vigilant,” stated a police release.

Authorities have repeatedly urged citizens to avoid clicking on suspicious links and to thoroughly verify any online investment offers before engaging.

“The public is urged to reject unknown links and remain vigilant,” the police reiterated.

With input from agencies