Hyderabad Man Loses Money in Fake Online Trading Platform Scam Exposed

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A Sophisticated Online Trading Scam Targets Unwary Investors

A 35-year-old man from Hyderabad recently fell prey to a complex online stock trading scam, losing ₹36.30 lakh in the process. The scam, which involved a fake trading platform and a promise of unusually high profits, highlights the growing threat of cyber-enabled investment fraud.

The Scam

The victim was initially added to a group on a messaging platform, where he was presented with a convincing narrative of a lucrative investment opportunity. The group administrators shared fake screenshots of high returns, trading tips, and purported regulatory documents to establish credibility. A woman, claiming to be a certified trader, then contacted the victim and guided him through the investment process.

The victim made an initial investment of ₹50,000, which was immediately reflected as a profit on the fake trading platform. This boosted his confidence, and he was encouraged to invest in “institutional stocks” and IPO opportunities. Over the course of a week, he transferred a total of ₹36,35,010 in multiple installments. His online account showed an inflated profit figure of around ₹7 crore, prompting him to consider further investment.

The Scammers’ Modus Operandi

Cybercrime experts note that this modus operandi has become increasingly common. Scammers use fake gains on small investments to build trust, then induce victims to invest larger amounts. When victims attempt to withdraw their funds, the scammers demand additional payments, citing taxes, processing fees, or security charges. However, the funds are never released.

Warning to Investors

The police have advised investors to exercise caution and not rely on trading tips circulated through messaging groups. They recommend investing only through reputable, Securities and Exchange Board of India (SEBI)-registered platforms.

Investigation

The case is being treated as part of an organized cyber investment racket. Investigators are analyzing digital trails, bank accounts, and mobile numbers to identify the wider network and trace other potential victims.