Techie brothers lose Rs 2 crore: SEBI warns of these online stock trading scams

A 53-year-old Pune-based man and his brother recently lost Rs 2.45 crore in an online trading scam. According to the FIR filed, the police said that cybercriminals added the complainant and his brother to a WhatsApp group, falsely promising him huge profits through online share trading. Later, the police find that it was just a screen software and could be manipulated online.
In the wake of rising investment-related scams across the country, the Stock Exchange Board of India (SEBI) has issued an advisory for investors.Warning about fraudulent investment schemes and apps promising unrealistic returns, the agency is asking investors to practice caution while trading.

What is the modus operandi of these scammers?

In its advisory, SEBI says that scammers – impersonating themselves as legitimate registered intermediaries, are carrying out fraudulent activities via social media platforms like Facebook and WhatsApp. In order to lure gullible customers, these impersonators promise guaranteed high returns.
Investors, believing they are dealing with legitimate registered intermediaries, download the app and invest through it. However, these investments never actually occur on the Stock Exchanges/Depository, the advisory states. When investors try to withdraw substantial value of securities, the application suddenly becomes nonfunctional.

How to verify details of registered Depository Participants

SEBI says investors can verify the details of registered Depository Participants (DPs) of Central Depository Services Limited (CDSL) on the official website. The advisory also provides a link which is – https://www.cdslindia.com/DP/dplist.aspx.

Here’s what the advisory from SEBI reads

Dear Investor,
SEBI has been receiving complaints from investors/intermediaries about fraudulent trading activities in the name of prominent SEBI registered financial institutions.
Generally, impersonators carry out their fraudulent activities/schemes via social media platforms and messaging apps, such as Facebook, WhatsApp, etc. These impersonators make enticing promises of guaranteed high returns to lure the investors. Investors, believing they are dealing with legitimate registered intermediaries, download the app and invest through it. However, these investments never actually occur on the Stock Exchanges/Depository. When investors try to withdraw substantial value of securities, the application suddenly becomes nonfunctional.
Therefore, investors are advised to stay away from such fraudulent investment schemes/apps promising unrealistic returns. Investors are also advised to refer the following link of CDSL website in order to verify the details of registered Depository Participants (DPs) of CDSL: https://www.cdslindia.com/DP/dplist.aspx
Further, some of the DPs provide online services to investors related to demat accounts such as online account opening, online holding/transactions statements etc.. If your DP is providing various depository related services in online mode, you may also avail online closure facility from your DP.
Please note that any official communication of CDSL is made only through its official website www.cdslindia.com and its official social media handles – Facebook: @cdslindia, Instagram: @cdslindia, Koo: @cdslindia, LinkedIn: @cdslindia, X (Formerly known as twitter): @cdslindia, YouTube: @CDSLIndiaLtd for latest updates.
Investors are requested to take note of the same and verify the information.