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

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

The scam takes place when victims encounter scammers through an online platform. They promised him a phenomenal return of up to 1500% on his investment, an attractive offer he could hardly resist. Believing the legitimacy of this opportunity, he downloaded a fraudulent trading app recommended by scammers, The Indian Express reported.

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Over the course of two months, from early August to mid-October, he transferred money to multiple accounts controlled by the scammers. The transfer amount reached an astonishing level $6.54 crore, an amount which he believes will yield significant profits. However, the fraud became apparent when he tried to withdraw his profits. At that time, the scammers demanded additional payment $2.5 crore fee, raises doubts about the authenticity of the operation.

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Knowing he had been scammed, the victim quickly filed a complaint with Bengaluru police. Law enforcement officials have confirmed the initiation of an investigation into the matter. The police’s first action was to freeze bank accounts related to the fraud to track down the perpetrators. A police officer noted the tactics used by scammers, saying they often use inflated stocks to build credibility and recruit victims by sharing success stories to create false sense of security.

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In light of this incident, individuals should be cautious about investment opportunities. Here are some guidelines to consider:

• Be skeptical 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 seems too good to be true, it probably is.