Online Trading Scam: Mumbai Investor Falls Victim To Rs 2.56 Crore Online Share Trading Scam

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New Delhi: Online trading scams are becoming more common in India these days. With so many scams happening, it's important to be aware and stay cautious when trading online. These scams often target people looking to invest so staying informed can help protect you from falling victim.

In a similar incident, a 60-year-old retired resident from Mumbai recently fell victim to a growing trading scam. The scammers tricked him into investing in a fake company with promises of big returns. Unfortunately, the victim ended up losing Rs 2.56 crore in an elaborate online share trading scam.

Scammers Add Victim to WhatsApp Group

The scam began when the victim received a message from an unknown number on WhatsApp. The scammers then added him to a WhatsApp group called "KK (Fortune Center)" in December 2023, as per TOI. ()

Group Admins Pose as American Company Reps

In this group, there were reportedly several administrators using aliases like Account Opening Manager, Chaman Singh, and Nita Singhania. They convinced the victim that they were representatives of a private American company involved in stock market investments. ()

Falling for False Promises

The scammers then gave the victim a link to a website where he was asked to enter his information and set up a virtual account. This virtual account seemed genuine and displayed promising investment returns. This led the victim to trust everything he saw and proceed ahead with the transaction, unaware of what was coming next.

Initial Investment Leads Victim Deeper into Scam

Guided by Singh and Singhania, in February the victim made his first investment of Rs 50,000 and saw a profit in his virtual account. As the victim watched his supposed profits grow he kept investing more money.

The scammers went as far as sending fake shares certificates through social media to deceive the victim about the legitimacy of his investments. l media to further deceive him about the legitimacy of his investments. They also provided specific bank accounts where the victim transferred his money, thinking it was for investing in shares.//

Scammers Demand More Funds Amid Stock Market Loss 

However, things took a turn  when the group administrators claimed that their company had lost money in the stock market. They then asked the victim to invest an additional 20 per cent of his money to cover these losses.

When the victim proposed deducting this amount from his shown profits and asked for a refund of his investment and earnings, the scammers declined. Afterward, the victim couldn't reach other group members and his access to the virtual account was blocked. The scammer then understood that he had been deceived and approached the police. Eventually, the victim filed a complaint against the fraudsters.