Trading Fraud Alert: Cyber criminals are resorting to new schemes of deception, enticing victims with the promise of hefty profits through trading apps. Initially offering small gains, they later coerce victims into making larger investments before shutting down the trading accounts.
Lure of Quick Profits
Using trading apps as their new weapon, cyber fraudsters are preying on people’s greed for substantial profits. An instance was witnessed in Jaipur, where a victim was duped of Rs. 15 lakhs, believing it to be a profitable trading deal, only to find their account frozen. The victim revealed that the purported profits of Rs. 15 lakhs were transferred to another individual’s account in the guise of profit, leading to a freeze on their own bank account.
Modus Operandi
Through trading apps, cyber criminals initially gain the trust of investors by showcasing modest returns. They then manipulate victims into investing larger sums, only to vanish with the funds later. In one case in Vidhyadhar Nagar, Jaipur, a victim was persuaded through social media groups to invest Rs. 14 lakhs within five days, promising returns of Rs. 1 lakh daily. However, after subsequent transactions and a displayed account balance of Rs. 3.30 crores, the victim’s trading account was abruptly closed, leaving them in distress.
Warning Signs
Experts like Ishan Sinha caution against such fraudulent activities, emphasizing vigilance and skepticism towards messages promoting quick gains. With the surge in popularity of app-based trading, the risk of falling victim to scams is escalating. It’s advised not to download any app directly from messages; instead, verify its authenticity on official app stores and websites before proceeding. Additionally, scrutinize the app’s business model and regulatory compliance thoroughly before initiating any transactions.
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