Bengaluru man loses 6.54 crore in fraudulent online share trading scheme- Details

A Bengaluru man lost Rs. 6.54 crore in an online share trading scam that promised unrealistic returns. Read on to know more about it.

By: HT TECH
| Updated on: Oct 25 2024, 07:07 IST
Cybercrime in India in 2023: WFH scams and Illegal lending apps top list, reveals I4C report
Online share trading scam
1/5 According to the Indian Cybercrime Coordination Centre (I4C), in 2023, the highest number of reported cybercrimes were related to Work from Home (WFH) or Part-time job scams. CEO Rajesh Kumar emphasized the prevalence of digital advertising, online messengers, and bulk SMS as common channels used by fraudsters. (unsplash)
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2/5 Illegal lending apps ranked second in contributing to cybercrimes, with a focus on operations in countries like China, Cambodia, and Myanmar. The Indian government has taken measures to block 595 suspicious apps and has whitelisted 395 instant loan apps approved by the RBI. (unsplash)
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3/5 Customer Care Number and Android malware emerged as the third-largest source of cyber fraud. Scamsters often use fake customer care numbers or install Android malware to steal sensitive information, including OTPs. (unsplash)
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4/5 Impersonation and sextortion are two widely employed tactics by cybercriminals. While Work from Home scams dominate reported cases, sextortion, primarily operated from Mewat, remains underreported due to victims' reluctance to complain. (unsplash)
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5/5 CEO Kumar highlighted the challenge of sextortion cases, revealing that approximately 19,000 such incidents were reported in the past year. The prevalence of sextortion, coupled with victims' hesitancy to report, poses a significant concern for authorities combating cybercrimes. (unsplash)
Online share trading scam
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A Bengaluru man lost 6.54 crore in an online share trading scam promising huge returns. (Pexels)

A 56-year-old company director from Bengaluru has reported a significant financial loss of 6.54 crore due to a fraudulent share trading scheme. This incident underscores the risks associated with unrealistic investment promises in the stock market.

The scam unfolded when the victim encountered the fraudsters through an online platform. They promised him extraordinary returns of 1500 percent on his investments, an enticing offer that he found hard to resist. Believing in the legitimacy of this opportunity, he downloaded a deceptive trading application recommended by the scammers, The Indian Express reported.

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Over the course of two months, from early August to mid-October, he transferred money into several accounts that the scammers controlled. The transfers amounted to a staggering 6.54 crore, which he believed would yield significant returns. However, the scam became evident when he attempted to withdraw his profits. At that point, the fraudsters demanded an additional payment of 2.5 crore in fees, raising suspicions about the authenticity of the operation.

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Realising he had been deceived, the victim promptly filed a complaint with the Bengaluru police. Law enforcement officials have confirmed the initiation of an investigation into the matter. The police's first action involves freezing the bank accounts linked to the scam to trace the perpetrators. A police officer noted the tactics employed by scammers, stating that they often use rising stocks to establish credibility and groom victims by sharing success stories to create a false sense of security.

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In light of this incident, individuals should exercise caution regarding investment opportunities. Here are several guidelines to consider:

  • Be sceptical of unsolicited investment advice, especially when received online.
  • Protect your financial and banking information by not sharing it with unknown individuals.
  • Avoid downloading apps from unfamiliar sources.
  • Confirm the authenticity of any investment platform before committing funds.
  • Remember that if an investment offer appears too good to be true, it likely is.

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First Published Date: 24 Oct, 18:48 IST
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