Navi Mumbai Cyber Cell Files FIR in ₹2.3 Crore Fake Trading Scam Case

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Authorities in Navi Mumbai have registered an FIR in a ₹2.3 crore fake trading scam involving deceptive stock market schemes.

Details of the Scam

A 43-year-old scrap dealer from Kolhapur, operating in the Rabale MIDC area, lost ₹2.3 crore after being lured by promises of high returns through a fraudulent trading platform. The victim was initially provided with legitimate profits to build trust before being encouraged to transfer larger sums. The scam became evident when the victim could not access the ₹11 crore in profits displayed on the application.

Victim’s Encounter with the Scammers

The complainant encountered an advertisement on a social media platform in March 2025, promoting an investment firm claiming exceptional returns. A woman posing as an assistant to a senior stock market consultant contacted him via a messaging app. He was added to a group where a purported financial expert shared trading advice. The victim was later sent a form and a link to a fraudulent platform, which facilitated initial transactions.

Escalation of the Fraud

As trust was built, the complainant progressively increased his investments, transferring funds to multiple bank accounts provided by the perpetrators. By April 2025, the total amount invested reached ₹2.3 crore. The fraudulent application continued to show rapidly increasing returns, but when the victim attempted to withdraw the larger sum, no funds were credited to his account. He was then informed that additional payments were required to cover taxes and administrative fees before the profits could be released.

Scam Techniques and Investigation

Investigators noted that the scam involved social media arbitrage, counterfeit brokerage operations, micro-withdrawal arbitrage strategies, and simulated profit projections. Perpetrators also used exit barrier deceptions, imposing tax liability extortions to prevent victims from accessing their funds. The delayed detection window allowed the fraudsters to route the money through multiple bank accounts, complicating the tracking process.

Cyber Police Response

The Navi Mumbai Cyber Police are analyzing financial records, transaction logs, and digital evidence to trace the flow of funds and identify those involved. A cybercrime expert highlighted that fraudsters often use initial small profits to build credibility, later encouraging victims to invest larger sums through fake platforms and fabricated expert endorsements.

Expert Advice and Warnings

The expert advised investors to rely solely on regulated financial services and to exercise caution against offers of unusually high returns. Authorities are focusing on uncovering the broader network behind the scheme by scrutinizing financial transactions and digital communications. The case underscores the evolving tactics of cybercriminals in exploiting trust and technological platforms to execute large-scale financial fraud.

“Fraudsters often use initial small profits to build credibility, later encouraging victims to invest larger sums through fake platforms and fabricated expert endorsements.”