Hyderabad: Victims in Telangana lost Rs. 3.9 crores whereas in 2023 in a total of 627 cases of trading frauds while there have already been 213 reported cases in 2024, with a total loss amounting to Rs. 27.4 crores.
Telangana State Cyber Security Bureau officials said with the rise of digital trading platforms, there has been a corresponding increase in fraudulent activities targeting investors, especially with the fake promise of securing pre-allotment in upcoming Initial Public Offerings (IPOs) by means of institutional investment in the stock market.
These offers take advantage of people’s desire for fast and big profits. Victims are frequently targeted with these fraudulent offers through messaging platforms like WhatsApp, Telegram, Instagram and platform X.
TSCSB director Shikha Goel explained that fraudsters exploit unsuspecting investors by offering enticing returns on IPO investments purportedly facilitated through institutional channels such as Foreign Portfolio Investors (FPIs). They typically initiate contact through messaging platforms, enticing victims with promises of lucrative opportunities.
Once the victim expresses his or her interest, they are then prompted to download fake trading applications. These applications are designed to grant fraudsters access to the personal and financial information of users.
Subsequently, victims are deceived into transferring funds to designated bank accounts controlled by the fraudsters. The apps are so designed to display fake dashboards showing bogus investment portfolios, which in turn lures victims into investing more funds to purportedly enhance their profits.
However, when victims attempt to withdraw their supposed profits, the fraudsters deny the withdrawal requests, resulting in significant financial losses.
In a case a businessman from Kukatpally suffered a massive loss of Rs. 5.98 crores after joining a Whatsapp group called “Goldman Sachs Business School” and investing in an unauthorized app called “GSIN.” He was lured by the promise of big profits but ended up losing a fortune.
In another case a businessman from New Bowenpally lost Rs. 67.50 lakh after joining a Whatsapp group called “82 Strong Stocks Academy” and investing in an unauthorised app called “Goomi.apk”. He was promised pre-allotment of the “Mobikwik” IPO.
This post was last modified on March 1, 2024 9:29 pm