A Noida-based businessman Dinesh Kumar, has become the latest victim of online share trading scam, losing Rs 28 lakh. Kumar was invited to join a WhatsApp group in April promising lucrative tips for trading on the National Stock Exchange (NSE) and even the US stock market.
How the scam worked
Lured by the prospect of high returns, Kumar followed the advice of a so-called investor within the group.He opened a trading account and started investing, initially seeing positive results.
However, soon Kumar started incurring losses and despite the huge losses, the scammers insisted him to deposit more money. Trusting their false promises, Kumar poured a total of Rs 27.57 lakh into the scheme.
When Kumar realized he had been duped, he reported the incident to the police. The authorities have registered a case under relevant sections of the Indian Penal Code and the Information Technology Act.
Some tips to stay protected from online trading scam
* Don’t trust investment tips that come out of the blue. Legitimate advisors won’t pressure you.
* Investigate the platform, broker, and “experts” involved. Look for licensing and reviews from reputable sources.
* Never share your login information or invest directly from your bank account without complete trust. Use strong passwords and two-factor authentication.
* If something seems too good to be true, it probably is. Don’t be swayed by unrealistic returns with no risk.
* Only open accounts with established, licensed brokers with a proven track record.
* Regularly check your account activity for any suspicious transactions. Report discrepancies immediately.