Mumbai Senior Citizen duped of ₹7.87 Crore in App-based Online Investment Fraud
The fraudsters posed as representatives of a prominent trading firm, targeting unassuming investors.
A 62-year-old woman residing in Mumbai’s Pali Hill area has lost a staggering ₹7.87 crore after falling prey to an app-based online scam promising high returns on investments. The modus operandi of the fraudsters begins through Whatsapp. The victim was contacted in June by individuals posing themselves as representatives of a reputed trading firm.
The scammers introduced themselves as experts in the share market, and added the victim to a WhatsApp group where members frequently discussed tips on earning significant profits through share market investments and IPOs.
Drawn in by persuasion from the fraudsters and tales of success stories within the group convinced the woman to download and use a trading app, masquerading as the trading application of a popular trading firm,
The investors were initially showered with handsome profits, reinforcing the impression that the investments were legitimate and lucrative. Consequently, the woman made more than 18 transactions totaling ₹7.87 crore, transferring the funds into various bank accounts provided by the accused.
Just days after her initial investments, the app began to show mounting losses instead of the earlier profits. Concerned, the woman attempted to withdraw her remaining funds to minimize further loss. At this point, the scammers insisted she must deposit an additional 10% of her invested amount as a withdrawal fee.
This demand raised her suspicions, prompting her to reach out to the customer care of the actual trading company. Just like the victim of most scam stories, the senior citizen discovered that there were no records of any investments made in her name.
A complaint was registered with the Mumbai police on July 18. Authorities have since registered a case under relevant sections of the Bharatiya Nyaya Sanhita, 2023, and the Information Technology Act, 2000 including charges of cheating, forgery, and criminal conspiracy.
Investigation to track the multiple bank accounts used in the scam and the fraudsters are currently underway.
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