Panaji: In light of a recent case wherein a person was duped of Rs. 38,90,182.90/- under the pretext of receiving high returns in online share trading, it was revealed that the victim was initially added to a WhatsApp group and provided with complete guidance on online trading. The fraudsters further instructed the victim to buy an IPO through an app called ‘FYERS,’ which is not a legitimate platform. Due to a lack of knowledge and awareness, the victim unknowingly transferred Rs. 38 lakhs to various bank accounts provided in the WhatsApp group, resulting in a loss of his hard-earned money.
Key Statistics and Impact
According to recent data from the National Consumer Helpline and the Securities and Exchange Board of India (SEBI), the number of complaints related to online investment fraud has surged by 70% over the last 12 months, with losses exceeding ₹1,500 crores. Fraudsters typically pose as reputable financial institutions or investment firms, offering too-good-to-be-true returns on stock trades, cryptocurrency investments, or real estate deals.
How the Scams Work
The fraudsters often use legitimate-sounding names, attractive websites, and even forged documents to gain the trust of potential investors. They frequently promise large returns with little to no risk involved, which preys on the financial aspirations of their victims. Once an individual deposits money, the fraudster either disappears or continuously pressures the victim for more funds, claiming additional “fees” or “taxes” before they can access their so-called “profits.”
These scams have affected individuals from various demographics, but seniors and inexperienced investors are particularly at risk.
Authorities Advise Caution
Experts at the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are urging the public to be especially cautious when approached by unsolicited offers, particularly those that involve investments in cryptocurrencies, international stocks, or high-risk assets. Here are a few red flags to watch out for:
Unsolicited offers: Never trust an investment opportunity that comes through an unsolicited email, social media message, or phone call.
Too-good-to-be-true returns: If an investment promises unusually high returns with little to no risk, it’s likely a scam.
Pressure to act quickly: Fraudsters often create a sense of urgency, pushing you to invest before you can fully evaluate the opportunity.
Lack of transparency: Reputable financial institutions will provide clear information about the risks and the specifics of any investment.
Steps to Protect Yourself
To avoid falling victim to these frauds, consumers are advised to:
1. Verify credentials: Always check the background of any company or individual offering investment opportunities. Use resources like SEBI’s online databases or Investors Education and Protection Fund (IEPF) to ensure legitimacy.
2. Consult a financial advisor: Seek advice from a certified financial planner or registered investment advisor before making any decisions.
3. Use secure platforms: When investing online, ensure the platform is legitimate and has strong security measures, including two-factor authentication.
4. Report suspicious activity: If you suspect that you have been targeted by a fraudster, report it to Cyber Crime Cell, SEBI, or RBI immediately.
Statements from Experts
DGP, Goa: ‘Investors must associate themselves with formal investment platforms governed by SEBI guidelines and consult knowledgeable experts on the matter before investing their hard-earned money’
SP, Cybercrime: ‘One should always doubt unnaturally high returns offered on investments and block those advertisements to protect others as well’
Conclusion
Authorities are working tirelessly to track down and apprehend those responsible for these scams, but consumer awareness is vital to preventing further victimization. By remaining sceptical of unsolicited offers and verifying the authenticity of any financial opportunity, individuals can protect themselves from becoming the next target of online investment fraud.
For more information, or to report a suspected fraud, visit www.cybercrime.gov.in or contact 1930 helpline Number.
