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Financial markets

Online Trading Scam via WhatsApp Groups and Fake Website: ₹1.1 Crore Lost by Retired Telecom Professional

Strategic Insights

— 1 min read

A 59-year-old retired telecom professional from Kharghar lost over ₹1.1 crore to an online trading scam operated via WhatsApp groups and a fraudulent investment website. The scam, which took place from April 9 to May 14, was uncovered when the victim tried to withdraw his "profits" from the fake website, only to realize he was scammed.

Key Takeaways:

  • The victim was added to a WhatsApp group unsolicited on April 6, which was presented as a platform for stock market trading and IPO investments.
  • The group had multiple admins and participants posing as investment advisors, assistants, and a CEO of a trading company.
  • The scammer convinced the victim to invest large sums of money based on claims of high returns and fabricated trading dashboards displaying massive profits.
  • The victim was told to pay the difference in order to access his "profits" from an IPO allotment worth ₹6.48 crore, which made him realize he was scammed.
  • The victim filed an online complaint on May 17 through the National Cyber Crime Reporting Portal, and only got back the initial ₹8,000 out of the total ₹1.10 crore invested.
  • A case was filed under sections 66 D (cheating by using a computer) of the Information Technology Act, 2000 and 3(5) (criminal liability), 318 (4) (cheating), 319 (2) (cheating by personation) of the Bharatiya Nyaya Sanhita, 2023.

Statistics:

  • The scam took place from April 9 to May 14, a total of 35 days.
  • The victim lost ₹1.10 crore to the scam.
  • The scammer convinced the victim to invest a total of ₹1.68 crore (including the ₹1 lakh initial investment) over the course of the scam.
  • The victim was told to pay ₹1.40 crore to access his "profits" from the IPO allotment.
  • Only ₹8,000 was returned to the victim after the scam was uncovered.

Sources:

  • National Cyber Crime Reporting Portal
  • Hindustan Times (May 21)
  • Information Technology Act, 2000
  • Bharatiya Nyaya Sanhita, 2023

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