Team Goemkarponn
PANAJI: In the wake of a staggering rise in online investment fraud, authorities in India are sounding the alarm, warning citizens to be cautious of unsolicited investment opportunities that promise unusually high returns.
A recent case in Panaji, where a victim lost Rs. 38,90,182.90 to fraudsters posing as online share trading experts, highlights the sophisticated tactics employed by these scammers.
Data from the National Consumer Helpline and the Securities and Exchange Board of India (SEBI) reveals a 70% increase in complaints related to online investment fraud over the last 12 months, with total losses exceeding ₹1,500 crores. These fraudsters often masquerade as reputable financial institutions or investment firms, luring victims with promises of substantial returns on stock trades, cryptocurrency investments, or real estate deals.
Fraudsters use convincing strategies to gain trust, including legitimate-sounding names, attractive websites, and even forged documents. They promise large returns with minimal risk, preying on the financial aspirations of their victims. Once an individual invests, the fraudster either vanishes or continues to demand additional funds under the guise of “fees” or “taxes” to access the supposed “profits.” These scams have disproportionately affected seniors and inexperienced investors.
Experts from SEBI and the Reserve Bank of India (RBI) are urging the public to exercise extreme caution when approached by unsolicited investment offers, particularly those involving cryptocurrencies, international stocks, or high-risk assets. Here are some red flags to watch out for:
Unsolicited Offers: Be wary of investment opportunities that come through unsolicited emails, social media messages, or phone calls.
Too-Good-To-Be-True Returns: If an investment promises unusually high returns with little to no risk, it is likely a scam.
Pressure to Act Quickly: Fraudsters often create a sense of urgency to push victims into investing before they can fully evaluate the opportunity.
Lack of Transparency: Reputable financial institutions will provide clear information about the risks and specifics of any investment.
Steps to Protect Yourself
To avoid falling victim to these frauds, consumers are advised to:
Verify Credentials: Always check the background of any company or individual offering investment opportunities using resources like SEBI’s online databases or the Investors Education and Protection Fund (IEPF).
Consult a Financial Advisor: Seek advice from a certified financial planner or registered investment advisor before making any decisions.
Use Secure Platforms: Ensure the online platform is legitimate and has strong security measures, including two-factor authentication.
Report Suspicious Activity: If you suspect you have been targeted by a fraudster, report it to the Cyber Crime Cell, SEBI, or RBI immediately.
The Director General of Police (DGP) in Goa emphasized, “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.”
The Superintendent of Police (SP) for Cybercrime added, “One should always doubt unnaturally high returns offered on investments and block those advertisements to protect others as well.”
Authorities are working diligently to track down and apprehend those responsible for these scams, but consumer awareness is crucial in 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 suspected fraud, visit www.cybercrime.gov.in or contact the 1930 helpline number.
