What to know about 4 online scams targeted towards Indians in recent months

“We found that Indians lost Rs 120.30 crore in digital arrest, Rs 1,420.48 crore in trading scam, Rs 222.58 crore in investment scam, and Rs 13.23 crore in romance/dating scam,” Chief Executive Officer (I4C) Rajesh Kumar had said while releasing the January-April data in May. Here is what to know.

1. 01

   TRADING SCAM

   How it worked: The alleged fraudsters issued ads on social media offering free trading tips, often using pictures of well known stock market experts and fake news articles. The victims were asked to join a WhatsApp group or Telegram channel, where they would receive “tips” on making money by investing in shares.

   After a few days, the victims would be asked to install some specific trading applications and register themselves in order to receive further guidance on making “huge” profits. The victims would start “investing” on the apps, following recommendations made by the cybercriminals. None of these apps would be registered with the stock market regulator Securities and Exchange Board of India (SEBI), but the victims typically neglected to check this.

   The victims deposited money in particular bank accounts to “buy shares”, and were shown some fake profits in their digital wallets. But when they tried to withdraw this “money”, they were shown a message that they could do so only after they had accumulated a certain amount, say Rs 30-50 lakh, in their wallet. This meant the victim had to keep “investing” and, sometimes, had to also pay “taxes” on the “profits” they were purportedly earning.

2. 02

   DIGITAL ARREST

   How it worked: Potential victims would get a call in which the caller would tell them that the victims had sent or were the intended recipients of a parcel containing illegal goods, drugs, fake passports, or other contraband.

   Once they had the target — who would be chosen carefully — in their net, the criminals would contact them over Skype or another video calling platform. They would pose as law enforcement officials, often wearing uniforms and calling from places resembling police stations or government offices, and demand money for a “compromise” and “closure of the case”.

   In certain cases, the victims were “digitally arrested”, which meant they were forced to stay visible to the criminals until their demands had been met. Read more in our explainer here.

3. 03

   INVESTMENT SCAM (TASK-BASED)

   How it worked: Victims typically received a WhatsApp message from an overseas number, purportedly belonging to a representative of a company, with an offer to earn a large sum of money, say, Rs 30,000, while working from home.

   Those who responded were told they would have to help boost the social media ratings of some entities by giving them a five-star rating. After the “task” was completed, victims received a “code”, which they were asked to share with their “admin” on Telegram.

   The “admin” would ask the victims where they wanted to receive their money and, after a few five-star rating “tasks” on YouTube or Google reviews etc. were completed, would deposit a small sum, perhaps Rs 500.

   At this point, the victim would be asked to participate in a “pre-paid” or “merchant” task, in which a higher return would be promised after a certain amount — which could be between Rs 1,500 and Rs 1 lakh — had been deposited. Victims who refused were blocked, but those who chose to participate were told the money and profit would come to them in a day.

   However, the following day, the victims would be told that their “performance score” was not good enough, and they needed to improve it by participating in new tasks so they could get their money.

4. 04

   ROMANCE/DATING SCAM

   How it worked: This was a somewhat more conventional trap, though laid online. The victims, who were male, were lured by people they thought were foreign women. These “women” would propose relationships or marriage, and then make plans to come and meet in person. However, the victim would typically get a call from the “woman” that she had been detained at the airport, and needed money to get out.

   On its website, the US FBI, which has dealt with such cases, says romance scamsters are experts at appearing genuine, caring, and believable. These con artists lurk on most dating and social media sites, and seek to quickly gain the victim’s trust.

   This story is an updated version of an explainer first published in May 2024.