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Journalism of Courage
Sasidharan Nambiar, 73, a retired Kerala High Court judge, joined a WhatsApp group named “Adithya Birla Equity Learning” in December, 2024. He did so believing it to be a group of share market trading enthusiasts. It is possible that he assumed it was a group by the Mumbai-based Aditya Birla Money. By December 30, on seeing the members of the group assuring 850 per cent profit on investments, Nambiar invested over Rs 90 lakh, clicking on links shared in the group by Ayana Joseph and Varsha Singh. However, Nambiar realised he fell victim to a major scam when the invested money was not returned. He filed a complaint at the Tripunithura Hill Palace police station on January 5, 2025.
According to the Indian Cyber Crime Coordination Centre (I4C), Indians lost over Rs 120 crore in investment scams in just the first quarter of 2024. In 2023, over one lakh cases of investment fraud were reported. Over 81,000 fake investment groups were operating on WhatsApp, with an equal number of fraudulent handles posing as legitimate financial entities on X. A simple search for ‘investment fraud’ on X reveals numerous social media users sharing how they were deceived by cybercriminals promising high returns.
Investment scams involve fraudsters building trust with victims and tricking them into fake schemes. These scams often promise high returns with little to no risk.
Examples are aplenty. Neeraj (name changed) was lured into an investment fraud with promises of high returns. He joined a stock market trading group after coming across a social media post about it. Like in Nambiar’s case, Neeraj, too, found multiple users actively engaging in the group. Assisted by an instructor and his aide, Neeraj invested a substantial amount of money over the next few weeks, expecting high returns. Soon, he found himself unable to access his funds or contact the representatives of the group. That is when he realised he was scammed.
Aayush (name changed) invested Rs 10 lakh in the Foreign Exchange Market through a social media channel. After investing a significant amount, the agents stopped responding to his calls. In many investment scams, cybercriminals pose as stock market experts. For example, in Meerut, an elderly couple was duped out of their life savings—Rs 3.1 crore.
To get more insights into online investment scams, indianexpress.com spoke with Arya Tyagi, cyber security researcher and founder of Webhack Solutions, and Manish Agrawal, senior executive vice president, credit intelligence and control, HDFC Bank.
“Today’s online investment scams have evolved from Ponzi schemes that became prevalent during the COVID-19 pandemic, offering double returns. These scams can take many forms, such as IPO (Initial Public Offering) scams, colour trading, and online gambling. Regardless of the variation, victims always face withdrawal issues from the start, as their funds are deposited into fake wallets on fraudulent websites,” said Tyagi.
“Investment scams are meticulously designed to appear legitimate, exploiting people’s financial aspirations. Scammers create an illusion of credibility using professional-looking websites, social media profiles, and fake credentials,” said Agrawal.
Discussing their operations, Agrawal explained that fraudsters often create WhatsApp or Telegram groups with fake members who share fabricated success stories. They initially encourage small investments, gradually persuading users to deposit larger amounts as their confidence grows. To lure unsuspecting victims, fake profits are displayed through dashboards and chats, coaxing them into reinvesting. Once a significant sum is collected, the fraudsters vanish by deleting the groups and blocking the victims.“This manipulation, fueled by the victim’s greed for easy money, makes these scams highly effective,” Agrawal said.
Tyagi also highlighted a rising trend of scams disguised as work-from-home (WFH) job opportunities. “Scammers assign simple tasks, such as writing Google reviews or liking YouTube videos, and offer small payments. Eventually, victims are encouraged to invest their earnings into a fraudulent wallet, turning a job offer into an investment scam,” he said.
Tyagi also revealed some red flags in these scams to watch out for, such as unrealistic promises, foreign numbers and encrypted calls, constant demands for money, fake websites, etc.
Being cautious about sketchy offers that seem too good to be true, even with testimonials, is the ideal way. One should avoid transferring money to online acquaintances and invest only through SEBI-registered entities. Suspicious WhatsApp or Telegram groups should be exited and reported, and verify schemes on the official websites of the companies named.
If you come across suspicious investment offers, report them on the Chakshu Portal at https://sancharsaathi.gov.in/. If you are a victim of fraud, contact your bank immediately and file a complaint at https://cybercrime.gov.in/ or call 1930.
As the world evolves, the digital landscape does too, bringing new opportunities—and new risks. Scammers are becoming more sophisticated, exploiting vulnerabilities to their advantage. In our special feature series, we delve into the latest cybercrime trends and provide practical tips to help you stay informed, secure, and vigilant online.
