Bengaluru firm director falls for lure of 1,500% returns, loses Rs 6.54 crore in share trading scam

The victim, a resident of Yelahanka town, runs a company manufacturing semiconductor LED drivers, lamps, and displays and was into share trading. He often browsed the internet and followed YouTube channels for tips on trading. On August 11, he received a WhatsApp message from an unknown number, inviting him to join a group for “trading and investment classes.”

The police said he was added to a WhatsApp group called ‘Nuuama Elite Group’ by someone named Aniketh Nerkar. For nearly a month, he participated in online classes where various stock market investment strategies were shared. According to the police, some of the tips provided by the group were initially proven to be accurate.

“Scamsters often use rising stocks to build credibility. They also groom the victims before they siphon big money. They plant success stories in the group to psychologically convince victims the scheme is genuine,” said a police officer.

The police said the victim saw multiple screenshots of purported profits shared in the group, which convinced him further. The police added that soon after installing a trading app provided by the scammers, he began sending money to them. From the beginning of August to October 14, he allegedly transferred Rs 6.54 crore to 12 different bank accounts. The app continually displayed impressive returns on his investments in stocks and IPOs, convincing him that he was earning crores of rupees.

However, when he attempted to withdraw his supposed profits, the scamsters allegedly demanded an additional Rs 2.5 crore in fees. Realising he had been scammed, he filed a complaint.

A police officer said they initiated the probe by freezing the primary bank accounts. “We have checked the money trail, and it looks like the money has been transferred to mule accounts,” he said.

Last year, a retiree lost Rs 9.14 crore in the notorious ‘FedEx’ scam, another significant cybercrime case.