Lured with 1000 per cent returns in 100 days, IT engineer loses Rs 96 lakh in share trading fraud

A First Information Report (FIR) in this regard was registered at Ravet police station under Pimpri Chinchwad police by the complainant, who works for a multinational company in Pune. The complainant lost Rs 96.57 lakh between April 2 and May 5, during which he was lured into making several large transactions over a fake phone app.

“The complainant was lured with high returns on investments in stocks through a social media link. After clicking the link he was added to a phone messenger group where the administrators and members discussed various investment options in stock markets and how they were getting high returns. He was subsequently contacted and was made to download a share trading app. The cyber fraudsters, posing as executives from this platform, promised him 1,000 per cent returns on his investments in 100 days.” said an officer from Ravet police station.

“The complainant was asked to send money to fraudulent bank accounts and against all the amounts he deposited, the fake share trading application kept showing nine-ten times profits. Believing it to was true, he kept sending money. When he tried to withdraw some of it, he was told various fake reasons and was asked to deposit more money for the withdrawals. It was at this point he realised he had been cheated. He subsequently approached the cyber crime cell of Pimpri Chinchwad police and an FIR was registered at Ravet police station after a preliminary inquiry,” the officer added.

Investigators have said that in cases reported till now, victims were targeted through social media advertisements, videos and reels. Over the last five months, the Pune and Pimpri Chinchwad police have reported what their cyber investigators are calling an epidemic, a worrying surge in online share trading fraud cases. Fraudsters employ a variety of baits, including trading tips, virtual lectures, mobile applications, and enticing promises of exorbitant returns.

In an advisory issued in this regard on February 26, the Securities and Exchange Board of India (SEBI) said, “Fraudsters are enticing victims through online trading courses, seminars, and mentorship programmes in the stock market, leveraging social media platforms like WhatsApp or Telegram, as well as live broadcasts. Posing as employees or affiliates of SEBI-registered foreign portfolio investors, they coax individuals into downloading apps that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy ‘Institutional account benefits’—all without the need for an official trading or demat account. These operations often use mobile numbers registered under false names to orchestrate their schemes.”