A woman from Mangaluru, has fallen victim to an online stock trading scam, losing Rs 74 lakh. The incident highlights the growing risk of investment scams lurking on social media platforms.
How the scam happened
The victim’s ordeal began in March 2024 when she saw an enticing advertisement for share trading on Instagram. Intrigued by the promise of high returns, she clicked on the link, which led her to a webpage with information about stock trading.
The victim then contacted the number provided on the webpage.This connected her with an unknown individual via WhatsApp, who presented themselves as a knowledgeable investment advisor. This individual likely built rapport with the victim, offering “expert” guidance and potentially creating a sense of urgency to invest.
The advisor then directed the victim to a seemingly legitimate online trading platform. However, this platform was likely a cleverly designed fake, controlled by the scammers. The victim, trusting the advisor, made an initial investment of Rs 10,000.
The scammers then manipulated the fake platform to show initial profits, further convincing the victim of the legitimacy of the operation. This tactic, known as “pump and dump,” is a common ploy used by online scammers to lure victims into investing larger sums.
Over the next few months, the victim, enticed by the staged profits and the supposed expertise of the advisor, gradually transferred a total of Rs 73.6 lakh into various bank accounts controlled by the scammers.
Only after discussions with friends and family did the victim realise she had been scammed. She then filed a complaint with the police, hoping to recover her lost funds.
Tips to stay protected from online trading scam
– Be wary of promises of high returns: If something seems too good to be true, it probably is. Legitimate investment opportunities typically involve a degree of risk.
– Do your research: Before investing in any platform or scheme, thoroughly research the company, its legitimacy, and any regulatory oversight.
– Never invest based on pressure or urgency: Legitimate investment advisors won’t pressure you to invest quickly.
– Beware of fake platforms: Be cautious of websites or apps that seem unprofessional or lack proper security measures.
– Never share financial information with strangers: Never disclose personal financial details, bank account numbers, or passwords to unknown individuals online.