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The allure of high returns in online share trading is increasingly drawing unsuspecting investors into the clutches of cybercriminals. A disturbing new trend involves scammers using WhatsApp groups to deceive individuals, promising substantial profits from stock market investments and leading them into significant financial losses.
The allure of high returns in online share trading is increasingly drawing unsuspecting investors into the clutches of cybercriminals. A disturbing new trend involves scammers using WhatsApp groups to deceive individuals, promising substantial profits from stock market investments and leading them into significant financial losses.
The Scam Unfolds
Scammers typically initiate contact through WhatsApp groups, claiming to offer exclusive insights into imminent Initial Public Offerings (IPOs) of major companies. These groups are often populated with accomplices who share fabricated success stories to build a facade of credibility. As potential victims are drawn in, they are encouraged to download counterfeit trading apps that mimic those of genuine trading companies.
The Deceptive Process
Initially, victims see what appears to be a legitimate trading experience. They can view their investments, allotted shares, and even make small withdrawals, which builds trust in the fake platform. However, as they invest larger sums—sometimes amounting to crores of rupees—they face problems when attempting to withdraw their earnings. Scammers then fabricate additional charges under the pretense of taxes, and once these payments are made, communication lines go dead, leaving victims stranded.
The Chinese Connection
Recent investigations by the Indian Cybercrime Coordination Centre (I4C) reveal that these scams are orchestrated by Chinese criminal gangs operating from Southeast Asian countries like Thailand, Cambodia, and Myanmar. These gangs not only defraud Indian citizens but also exploit young Indians, luring them abroad with false job promises and involving them in these illicit schemes.
Impact on Telangana
Telangana has emerged as a hotspot for such cybercrimes, contributing over 40% of the nation’s cybercrime reports last year. Fake trading apps have been a significant concern, with a staggering Rs 1,420.48 crore lost in 20,043 cases out of a total Rs 1,770 crore reported in cybercrimes across India as of April 2024. This represents a troubling 80.22% of the total financial losses in cybercrimes.
Expert Warnings
Satish Kantheti, Joint Managing Director of GenMoney, emphasizes the importance of thorough research before engaging in online share trading. He warns that trusting unsolicited offers and high-profit promises is risky and often a sign of fraud. Kantheti advises investors to rely on well-established stockbroking firms and avoid falling prey to scams disguised as lucrative trading opportunities.
Real-Life Impact
A case in point involves a software consultant from Kondapur, Hyderabad, who was lured by a fake advertisement on Facebook. After joining a WhatsApp group and interacting with individuals posing as executives from a reputed securities firm, he ended up transferring Rs 5.27 crore in multiple installments to the scammers. The perpetrators vanished once they had collected the money.
The rise of these WhatsApp link scams highlights the urgent need for vigilance and due diligence in the digital age. As online share trading continues to grow, so too does the sophistication of the scams targeting unsuspecting investors.
