Background

In 2023, a businessman from Cherthala, Kerala, was defrauded of more than ₹7 crores over two months in a sophisticated online share trading scam. The perpetrators posed as representatives of reputed financial firms like Invesco Capital and Goldman Sachs, enticing him with promises of high returns through a supposedly lucrative share trading scheme.

The Scam Unfolds

The businessman, Mr. Rajesh, was initially contacted via WhatsApp by individuals claiming to be financial advisors from well-known firms. They provided detailed presentations and fake credentials to build trust. Rajesh was added to a WhatsApp group named "Dalal Street Traders," where he received daily updates and tips on stock trading. The group was managed by scammers who used pre-scripted messages and fake training setups to maintain control and manipulate victims.

Investment and Loss

Rajesh was convinced by the professional demeanor and the initial small returns he received. Over two months, he invested a total of ₹7 crores. However, when he attempted to withdraw his profits, he faced delays and excuses. Eventually, the scammers stopped responding, and the WhatsApp group was deleted. Realizing he had been scammed, Rajesh reported the incident to the police.

This case study underscores the importance of vigilance and verification in preventing investment fraud. Stay informed and protect yourself from falling victim to these fraudulent schemes.

Ref.: 1. Inside the world of investment scams targeting India - CNBC TV18 2. 10 biggest investment frauds in recent history - Investment News 3. Pune man loses Rs 2.1 crore to investment scam: What is it and how to stay safe - Times of India 4. Kerala man loses Rs 7.55 crores after falling for online investment scam - India Today 5. Cyber scammers siphoned off Rs 56 crore in eight months, over 80% cases pertain to investment fraud: Noida Police | Delhi News - The Indian Express