Cyber security expert loses Rs 73 lakh in online share trading fraud

In August, the complainant received a message from an international number containing a link. Upon clicking it, he was added to a WhatsApp group with over 100 members  several of whom were sharing screenshots of large profits allegedly earned through the group’s trading platform. The group administrator later asked him to fill out a form and log in to a trading app that promised “tips” on profitable stocks. Between August 8 and September 1, the victim was persuaded to make 55 transfers ,  totalling Rs 73.69 lakh ,  to mule accounts located in Chennai, Ulhasnagar (Thane), Bhadrak (Odisha), Ferozepur (Punjab), Pimpri-Chinchwad, and Gurugram, among other places.

The app reflected ‘earnings’ of Rs2.33 crore. However, when the complainant tried to withdraw the amount, he was asked to first pay a 10 per cent “tax”. Realising he had been cheated, he approached the police, who registered an FIR on Monday.

Cybercrime police stations across Maharashtra, including Pune and Pimpri-Chinchwad, have reported a surge in such online trading scams over the past two and a half years. Fraudsters typically lure victims with trading tips, virtual lectures, and mobile apps promising high returns.

Officials have raised concerns that citizens continue to fall prey to such scams despite repeated advisories, awareness drives, and wide media coverage.

In an advisory issued in February last year, the Securities and Exchange Board of India (SEBI) had warned investors, stating, “Fraudsters are enticing victims through online trading courses, seminars, and mentorship programs in the stock market, leveraging social media platforms like WhatsApp or Telegram, as well as live broadcasts. Posing as employees or affiliates of SEBI-registered Foreign Portfolio Investors, they coax individuals into downloading applications that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy ‘Institutional account benefits’—all without the need for an official trading or Demat account. These operations often use mobile numbers registered under false names to orchestrate their schemes.”