A 53-year-old man from Pune, along with his brother, recently fell victim to an online trading scam, resulting in a loss of Rs 2.45 crore. The FIR filed by the police reveals that cybercriminals added the complainant and his brother to a WhatsApp group, promising them significant profits through online share trading. However, investigations later revealed that the promised profits were fictitious, and the trading platform was merely a screen software susceptible to manipulation.
In light of the growing number of investment-related scams across the country, the Securities and Exchange Board of India (SEBI) has issued a warning to investors. SEBI cautions investors about fraudulent investment schemes and apps that offer unrealistic returns, urging them to exercise caution while engaging in online trading.
The modus operandi of these scammers involves impersonating legitimate registered intermediaries and conducting fraudulent activities through social media platforms like Facebook and WhatsApp. They entice unsuspecting investors with promises of guaranteed high returns. Once investors believe they are dealing with reputable intermediaries, they download the app and invest through it.
However, these investments do not actually occur on the Stock Exchanges or Depositories as claimed. When investors attempt to withdraw substantial securities, the application becomes nonfunctional.
SEBI advises investors to verify the details of registered Depository Participants (DPs) of Central Depository Services Limited (CDSL) on the official website.
The advisory from SEBI warns investors against falling for fraudulent trading activities conducted by impersonators posing as prominent SEBI registered financial institutions. These impersonators use social media platforms and messaging apps to carry out their schemes, making enticing promises of guaranteed high returns. Investors are urged to avoid such schemes and apps offering unrealistic returns and to verify the legitimacy of DPs through the provided link. Additionally, investors are encouraged to utilize online services offered by legitimate DPs for demat accounts and seek online closure facilities if available.
