Lucknow: A Lucknow resident has lost around ₹1.27 crore in a purported cyber fraud after being lured into a fake stock market investment scheme promising high returns.
The scam was carried out through WhatsApp, where the victim was added to a group of around 1,000 members and shown screenshots of purported profits, investment tips and details of so-called expert mentors. What appeared to be a profitable investment opportunity collapsed into a huge financial loss when the victim was asked to pay out multiple payments in the name of withdrawal charges, taxes and other fees.
According to the complaint filed with the cyber police, the victim, Arshad Ahmed, in Devamau in Golf City, was contacted by unknown people on WhatsApp and offered the opportunity to invest in the stock market through an online platform. Ahmed was added to a large WhatsApp group with messages, investment recommendations and screenshots of alleged profits frequently shared.
The vast number of members in the group were alleged to have helped to create an impression that the investment operation was real. Photos showing other investors making significant profits also were circulated to spur members to invest more money. The accused also presented purported mentors or experts who offered investment advice and guided participants on how much money to invest.
To gain confidence, small investments were made.
The scam began with only small investments, Ahmed said. He personally invested ₹10,000 and the online portal supposedly made 30 percent profit. This gain, he told investigators, led him to think that the platform was legitimate. He then invested another ₹20,000 and the portal allegedly made about 25 percent profit.
The victim became more confident in the investment platform as the shown profits continued to increase; the fraudsters reportedly used this confidence to convince him to transfer ever more money. Money was later sent to several different bank accounts as part of the investment process.
Ahmed's total investment had reached ₹50 lakh. When he tried to withdraw his money, the withdrawal facility was allegedly blocked. The accused told him that he needed to invest another ₹10 lakh before the withdrawal could be processed.
Additional Payments Allegedly Demanded
According to the complaint, the demands did not stop there. When the money was not being released, the fraudsters asked for more payments, citing taxes, GST, processing charges and other fees. Ahmed continued to transfer money in order to get back his money and the profit he had made on the portal.
The total amount transferred through multiple transactions reached around ₹1.27 crore. Ahmed came to realize that the investment platform might be fraudulent when the repeated payments failed to result in a withdrawal and further demands continued. He approached the cyber police and submitted transaction details and bank documents.
Fake Investment platforms can create illusion of profits
The alleged case is indicative of a common pattern in online investment frauds. Cybercriminals may encourage victims to make relatively small deposits and then show fake or manipulated profits on their website or app. These seemingly positive gains can lead victims to believe the platform is legitimate, thus encouraging them to invest more in the platform.
The cybercrime expert and former IPS officer Prof. Triveni Singh warned that fraudsters will build trust before asking victims to pay huge sums. As per the complaint, the suspected operators used a WhatsApp group, purported experts and profit screenshots as part of the process of building credibility.
A major warning sign of such a situation is the demand for extra money before allowing a withdrawal. Genuine investment platforms do not normally require investors to repeatedly transfer large sums to unlock money that is supposedly already available in their account. Requests for payments of taxes, GST, release charges or processing fees need to be independently verified before any further money is transferred.
Police Trace ₹1.27 Crore Money Trail
Following the complaint, cyber police have started investigating the alleged fraud and are examining the financial transactions made by the victim. Bank accounts that received the money are being investigated, and who controlled them is reportedly being looked into by investigators.
Police will also look at the WhatsApp group, the mobile numbers, alleged investment portal and other digital records related to the case. The investigation will help establish how the alleged operation was organized and whether the same network allegedly targeted other people.
The financial trail will be an important element of the investigation. The money could be transferred to other accounts after reaching the initial recipient accounts, and the authorities may want to know what happened to the money. Mobile phones and online communication could also help investigators identify people involved in the scheme.
The case is a reminder to investors of unsolicited investment offers from messaging platforms. High or guaranteed returns, pressure to invest more money, and demands for more payments before withdrawals are processed are common warning signs. Investors should independently verify the identity of financial advisers and the regulatory status of investment platforms before transferring their funds.
The Lucknow cyber fraud investigation is ongoing. Police are searching for the alleged perpetrators, tracking the ₹1.27 crore financial trail and determining whether other victims were targeted through the same network. Digital and financial evidence will help the investigators in the investigation.
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