News of fraud via WhatsApp surfaces almost daily. Such frauds involve share trading scams. Fraudsters pose as legitimate financial experts promising high returns on investment. By creating a sense of trust and urgency, they lure victims into transferring money or sharing personal information, only to realize later to have lost their funds into false trading.
Recently, a Pune-based 53-year-old man with his brother lost ₹2.45Cr to an online trading scam. The police filed the FIR that disclosed that two brothers were added to a WhatsApp group guaranteeing huge profits after trading. Later, the fact was revealed that the profits were cheated and the trading platform was only a manipulative software screen.
In the wake of the alarming rate of such cybercriminal acts in India, the Securities and Exchange Board of India (SEBI) warned the investors. SEBI warned investors about fraudulent investment schemes and apps promising unrealistic returns, advising caution when engaging in e-trading.
Scammers’ Modus Operandi
In this mode of conduct, scammers involve unsuspecting investors in turn of guaranteed high returns via social media platforms such as Facebook, WhatsApp, Instagram, and others. After the investors are convinced, they download the application for further investment. However, no investment occurs on a stock exchange. On attempting to withdraw the considerable securities, the application refuses to respond.
SEBI Advisory
SEBI urges investors to check the details of registered Depository Participants (DPs) with Central Depository Services Limited (CDSL) through the official website.
How to Avoid Cybercrimes?
SEBI's advisory warns investors against fraudulent trading activities conducted by such rotten cheats posing as prominent SEBI-registered financial institutions. These scammers take advantage of social media platforms and messaging apps to make enchanting promises with guaranteed high returns. Investors are suggested to avoid such schemes and apps offering unrealistic returns and to verify the legitimacy of Depository Participants (DPs) through the official site. Also, investors are motivated to utilize online services only offered by legitimate DPs for demat accounts.
Investors’ Responsibility
Following up the footsteps suggested by SEBI makes it possible to fight off cybercriminals’ vile intentions. Not only this, investors should be more responsible and aware of where their hard-earned finance goes. Awareness is the only key to preventing such instances.
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