The Pune City cyber crime police station has launched a probe into a substantial cyber fraud case following a complaint from a 49-year-old individual working at a private company in the city. The victim, a chartered accountant from Pune, was defrauded of a massive Rs 3.4 crore. It was discovered that the victim had taken loans exceeding Rs 2 crore from various banks as part of this fraudulent activity.
The fraud scheme involved a WhatsApp group purportedly linked to a prominent British financial institution, enticing victims with promises of significant returns through ‘block trade’ and ‘upper circuit trading’.
The chain of events began when the victim encountered a link to an app-based stock trading platform while browsing Facebook in February. Upon clicking the link, he was added to a WhatsApp group named after a well-known multinational asset management company headquartered in London. Within this group, he received enticing messages promising substantial profits on investments. Subsequently, he was directed to download a link to provide his financial and bank details and was asked to install a specific mobile application.
Over the following days, the victim received investment ‘tips’ and opportunities labeled as ‘block trade’ and ‘upper circuit trade’. As a result, he made numerous substantial payments ranging from Rs 50,000 to Rs 1 crore, totaling Rs 3.4 crore. Notably, he acquired over Rs 2 crore through loans from two cooperative banks and one private sector bank. During this period, his account on the phone-based application appeared to reflect significant returns on his investments.
Upon attempting to withdraw a portion of the funds, the victim was instructed to contribute a portion of the total amount to a charitable cause. Suspecting foul play, he investigated the details of the share trading platform, discovering the fraudulent nature of the scheme. He subsequently reported the incident to the cyber crime cell, leading to the filing of an FIR after a preliminary investigation.
Cyber investigators have noted an alarming increase in online share trading fraud cases reported to the Pune and Pimpri Chinchwad police. Perpetrators use various tactics, including trading tips, online seminars, mobile applications, and promises of high returns, to carry out their fraudulent activities.
Responding to this trend, the Securities and Exchange Board of India ( SEBI ) had issued an advisory on February 26, warning about the methods used by fraudsters, including impersonating SEBI-registered entities and exploiting social media for fraudulent trading schemes.
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