 "How WhatsApp investing scams are duping people into parting with their savings")
A 48-year-old businessman, who also owns a coaching class in Maharashtra’s Thane district, fell victim to a share trading scam that cost him more than Rs 1.88 crore.
The scam began with the membership of a WhatsApp group. This group, with 170 members, regularly posted stock tips and share trading advice.
The owner of the Thane coaching class was impressed with the advice and purchased the suggested stocks. Later, he was added into another group named ‘STOCK-Vanguard-VIP’.
The complainant told police that the scam unfolded in March this year.
After joining the group, three people, identified as Isha, Divya, and Raj Rupani, contacted him, showed him a ‘SEBI certificate’ to gain his trust, and told him that he could make huge profits by investing through an app called CINVEN/IC SERVICES, prompting the complainant to invest more than Rs 1.88 crore.
However, when he demanded his money back, he received no response.
Police have registered a case of cheating under Indian Penal Code Section 420 at Vitthalwadi police station, but no arrests have been made, according to officials.
How are online investment scams in India targeting and duping businessmen of crores?
In yet another case of online investment scams in India, a Bengaluru businessman lost Rs 5.2 crore after falling for a fraudulent stock market app shared via WhatsApp in April of this year, reports India Today. The 52-year-old was received a WhatsApp message promising lucrative stock market returns, according to TOI. The message included a link through which he was asked to download an app from bys-app.com.
He initially ignored the messages before succumbing to persistent calls and downloading the app, thinking it to be a legitimate opportunity. Scammers posing as financial advisors duped him into sending large sums of money, claiming they were investing in stocks. The victim, upon discovering the scam, filed a FIR and an IT Act case.
Impact Shorts
More ShortsIn February, another 73-year-old man from Mumbai lost Rs 3.69 crore. He told police that he was a member of a WhatsApp group from May to October of last year, where he was added by a woman who promised him stock market training. Over time, he invested Rs 3.69 crore. When he asked for his money back, they asked him to pay more than Rs 40 lakh in taxes in order to reclaim it. This is when he realised, he had been duped and went to the cyber police, as reported by Indian Express.
How is Whatsapp used for fraud?
The use of social media platforms like Whatsapp and Telegram for financial frauds are increasing in India. Scammers create fake investment groups pretending to be famous brands and professionals, and offering phoney stock tips and trading courses. Scammers send WhatsApp users group invites while posing as representatives of reputable fund houses, according to ET.
The messages promise free access to high-quality investment portfolios and daily stock recommendations.
The scam works in several steps: victims are added to random investing groups, multiple groups are created simultaneously, famous investors’ profiles and credentials are shared, discussions hype up ’lessons’ and ‘opportunities,’ conflicting tips are given in different groups, successful groups encourage more investment, unsuccessful groups are abandoned, and active members are pushed into special programs with bigger rewards.
Scammers even impersonate finance experts and influencers like Porinju Veliyath and Ajay Kacholia, leveraging their identities to gain credibility, as per Times of India. Group chat discussions are frequently scripted, giving the impression that they are genuine. The scam relies on FOMO (fear of missing out), urgency, and free trial offers to entice victims to invest more money, after which the scammers disappear.
How can you remain safe?
To stay safe from investment scams, it’s crucial to be cautious and follow a few key tips.
Firstly, always verify the legitimacy of any financial opportunity, especially if it comes from unknown sources. Research the company or individual offering the opportunity to ensure they are credible.
Avoid clicking on links or downloading apps from unfamiliar sources, as these could lead to scams or malware. Be sceptical of investment offers that promise unusually high returns with little risk, as these are often too good to be true.
Conduct transactions and investments only through trusted and reputable platforms, and regularly monitor your accounts for any unauthorised activity. When in doubt, seek advice from a professional financial advisor to make informed decisions and avoid falling victim to scams.
With inputs from PTI
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