A Mumbai-based advocate, who also practices in Delhi, found himself ensnared in a recent scam involving online stock market trading on the Bombay Stock Exchange (BSE). Alongside over a hundred other investors, he fell victim to promises of substantial returns after responding to an advertisement for stock market training on Instagram.
The advocateās journey into the scam began when he connected with an individual posing as an MBA graduate from the prestigious Wharton School at the University of Pennsylvania. Claiming to be a chief strategy analyst at a reputed firm, this person lured the advocate and others with assurances of lucrative opportunities in the stock market. Here are some key points encapsulating the situation:
- Advertisement on Instagram: The scam began with an enticing advertisement on a popular social media platform, promising comprehensive stock market training.
- False Credentials: The perpetrator claimed to hold an MBA from Wharton School, adding an aura of credibility to their pitch. This false identity was pivotal in gaining the trust of potential victims.
- Promises of High Returns: Investors, including the advocate, were promised significant returns on their investments, tapping into their desire for financial gain.
- BSE Trading Platform: The scam specifically targeted trading on the Bombay Stock Exchange, leveraging the legitimacy of a well-known financial institution to bolster its credibility.
- Widespread Impact: Over a hundred investors, like the advocate, fell prey to this deception, highlighting the widespread nature of the scam and its devastating financial consequences.
This case underscores the importance of vigilance when engaging in online financial activities and the need to verify credentials and claims thoroughly before committing to any investment opportunity.
Stock broking \ Delhi Cyber Cell:
A Mumbai-based advocate, also practicing in Delhi, fell victim to a stock market scam orchestrated by a man posing as a chief strategy analyst from a reputed trading firm. Promised a month-long free online training, she was impressed by the tips provided, yielding returns of 405% on 44 out of 47 recommended stocks between June 28 and July 16. However, she realized too late that it was a scam, losing over Rs 22 lakh in a single day. She lodged a case on July
Police investigations unveiled that all phone numbers provided by the perpetrator were fake. He had fabricated numerous online contents and articles, even misusing genuine company details to deceive victims. Cyber crimes pose a significant challenge.
āCyber crimes demand immediate attention because these criminals are highly sophisticated, exploiting human psychology. They mimic legitimate stock apps, using readily available SEBI and RBI registration numbers to gain trust. Initially, they offer genuine trade advice using AI and deepfake technology, yielding small profits to appear credible.ā
- Upper Circuit Stocks: Perpetrators exploit these stocks to gain trust, showcasing unrealistically high returns.
- Promise of IPO Allotments: They dangle lucrative opportunities like IPO allotments to lure victims further.
- Impact on Victims: Beyond financial loss, victims suffer damage to credibility and self-confidence.
- Call for Stricter Surveillance: Advocate stresses the need for tighter monitoring of social media ads and messaging platforms like WhatsApp.
- Public Awareness: Urges the government to enhance awareness campaigns to prevent others from falling prey.
- Magnitude of Losses: Highlights the staggering amounts lost in similar scams, often with minimal recovery options, emphasizing the devastating consequences for unsuspecting individuals.
Incident Overview
On June 4, 2024, the advocate encountered an enticing advertisement on Instagram offering trading advisories, which led her to join a WhatsApp group with purported links to Delhi and Mumbai.
Group and Admin Details:
- Initial Trust: The WhatsApp group appeared genuine, discussing market trends post Lok Sabha elections.
- Credible Advice: The admin initially provided seemingly credible stock market advice.
Initial Engagement:
- Red Flags: Advice on IPOs and Upper Circuit stocks not available through regular trading apps raised suspicions.
- Trust Building: The adminās team gained trust, promoting an app named āUpxxxā for supposed public voting in a global trade competition.
Downloading the App:
- Deceptive Practices: The app had to be downloaded via a link, not through legitimate app stores, highlighting a major red flag.
Initial Investments:
- Financial Transactions: Transfers to a bank account under a different name than the trading firm indicated potential fraud.
- Increasing Investments: Larger sums were transferred based on promised returns, exacerbating financial risk.
Cyber Expert Advice:
- Warning Signs: Dr. Triveni Singh cautions against lucrative social media ads, emphasizing the prevalence of cyber fraud.
- Increased Vigilance: Public awareness and caution are crucial to avoid falling victim to sophisticated cyber schemes.
This detailed account underscores the importance of skepticism and due diligence in online financial engagements, urging individuals to remain vigilant against persuasive but fraudulent schemes.
