Fake stock market platforms dupe investors of over Rs 4 crore in Cyberabad

Hyderabad: The Cyberabad Cyber Crime Police has registered two major cases of online trading fraud in which unsuspecting victims were duped of more than Rs 4.15 crore through fake stock market investment platforms.

Fraudsters lured victims with promises of assured returns, IPO allocations and block deals while impersonating reputed financial firms.

Scammers operated through WhatsApp groups

According to police, the criminals first approached victims through social media platforms like Facebook and Instagram before adding them to seemingly ‘active’ WhatsApp groups.

These groups, filled with fake participants, displayed fabricated profit screenshots to build trust. Fraudsters also misused names and photos of well-known financial executives, posing as analysts and advisors.

Small withdrawals were allowed to gain trust

Victims were asked to download counterfeit trading apps, which showed manipulated dashboards indicating huge profits. The victims were persuaded to transfer money repeatedly to multiple bank accounts under the guise of maintaining ‘institutional DMA accounts’ or securing IPO shares.

In some cases, small withdrawals were permitted initially to reinforce credibility. However, when victims attempted to withdraw larger sums, they were told to deposit additional funds for audits or IPO clearances.

Extent of loss

In the first case, a victim lost Rs 2.24 crore. In the second case, another victim transferred Rs 1.91 crore, of which only Rs 10.66 lakh was temporarily returned as part of the deception.

Together, the victims suffered losses amounting to Rs 4.15 crore. Both cases have been registered at the Cyber Crime Police Station, Cyberabad, and investigations are ongoing.

Recovery efforts

With prompt reporting on the National Cybercrime Reporting Portal and swift coordination with banks, the Cyberabad Police managed to freeze Rs 25.10 lakh linked to the fraudulent accounts.

Of this, Rs 4.33 lakh was secured in the first case and Rs 20.76 lakh in the second. Police said these funds will be refunded to the victims after completion of the legal process.

Advisory to citizens

The Cyberabad Police urged citizens to exercise extreme caution while making online investments. Follow these steps to avoid getting scammed.

- Avoid downloading trading apps from unverified links; always use official company websites or app stores.

- Do not transfer money to unknown bank accounts promising high returns.

- Verify the identity of financial advisors with official firms before investing.

- Be wary of schemes guaranteeing IPO allotments, block deals, or abnormally high profits.

- Report suspicious activities immediately to the Cyber Crime Helpline 1930 or via the National Cybercrime Reporting Portal www.cybercrime.gov.in.

“Fraudsters are increasingly exploiting people’s trust in stock trading and IPO markets. We appeal to citizens to remain vigilant and verify every investment opportunity,” Cyberabad Police said in a statement.