Investment scams are a big problem. People are often promised huge profits, like turning one rupee into one lakh. It sounds amazing, right? But it's a trick. Cybercriminals make it seem even better with their tactics. They lure people in, take their money, and disappear. The frequency of these scams has increased by a lot now. They're one of the top cyber crimes. There are different types, but they all promise big returns and end up stealing people's money
The following are some examples:
- Website Based Scams
Scammers are using websites to trick people. They set up fake deals to catch their victims. For example, you might be browsing the internet when a pop-up appears. It says you can buy expensive phones from a well-known company at a super low price. They claim it's a clearance sale, and if you buy in bulk, it's even cheaper. The pop-up shows pictures, videos, and comments from supposed happy customers. If you fall for it and pay up, that's it. An executive at a big software company in Hyderabad fell for this and paid Rs. 20 lakhs for phones as a reward for her staff. But the phones never arrived, and she went to the police. - Forex
Scammers are using Voice over Internet Protocol (VOIP) calls to target people for forex (foreign exchange) trading scams. They pose as representatives from forex trading companies, promising huge profits if you invest with them. They claim that with the rise in international transactions, there's a high demand for currency exchange, meaning big profits without hefty commissions. They set up fake websites and bank accounts to collect investments. To gain trust, they even pay out some commissions initially. This tricks people into investing more. But once they have enough money, they vanish, leaving their victims broke. For instance, a software engineer from Gachibowli lost 73 lakhs to such a scam. - Franchise
Many companies now offer franchises, which means they let other people open new branches of their successful business. But be careful, because scammers are taking advantage of this. They pose as representatives of well-known companies online. If you show interest, they promise to give you a franchise after you contact them. They'll even send you what seem like legit documents. But once you pay up, they disappear. For example, someone in Hyderabad lost Rs. 26.27 lakhs to a scam promising a KFC franchise. Another person lost Rs. 45 lakhs thinking they were getting a gas dealership.Stay Alert, Stay Safe (ETV Bharat) - Part-time Job
Scammers are tricking people with fake part-time job offers, and it's becoming a big problem. They advertise these jobs on social media, claiming to be from famous companies. They even send fake appointment letters to hopeful job seekers. They say you can earn money by liking and writing reviews. They might promise payment for writing reviews for businesses on Google Maps. But it's all a scam. For example, a government employee lost Rs. 84.9 lakhs falling for one of these scams. - Stock Exchange
Investing in the stock market is common nowadays, but scammers are taking advantage of it. They advertise online as stock brokers, claiming they can predict which company's shares will rise. They promise quick profits, saying if you invest in the morning, you'll get returns by evening. They even show fake profits in your account to make you believe them. They may also claim to have inside information about upcoming IPOs, promising to buy and sell shares for you at a profit. They ask for your name and account details to use in their app. Once you invest a large sum, the app shows big profits. But when you try to withdraw the money, it's complicated. Even if you refuse to invest more, they pressure you to do so. That's how they scammed Rs. 36 lakhs from one person in Hyderabad - Cryptocurrency
Cryptocurrency is a hot trend, but scammers are taking advantage of it. They contact people through WhatsApp and Telegram, promising big profits. They say if you invest, you'll make lots of money quickly. But once you invest, you can't withdraw your money. They trick you into investing more, thinking you'll get even bigger returns. An IT employee from the Kapra area of Hyderabad lost Rs. 78 lakhs to one of these scams - Ponzi
It's called a Ponzi scam, and it often starts with a WhatsApp call. They claim to be from a stockbroking company and promise big commissions if you join and recruit others. Those who join early get big rewards, which they use to lure in more people. This cycle continues until they've collected a large sum, and then they vanish, leaving everyone else empty-handed. It's a scheme that relies on recruiting new members to pay returns to earlier investors, but it's ultimately unsustainable and collapses when there are no more recruitsBeware of Scammers (ETV Bharat)
In Telangana's Cyber Security Bureau, 20,500 cases have been regsitered and the total loss is Rs.582.3 cr.
What Cops Say?
Speaking to ETV Bharat, Shikha Goel, Additional Director General of Police CID, said the top trending crime in the country, in cyber, is investment fraud.
"They lure you by saying, we'll double your money, in the investment fraud that is stocks, IPO," she said, adding that, "They first communicate to you through WhatsApp, claiming to give you trading tips, how to invest, how much to invest, which IPO, what is trending, which has more money, where you can profit."
The Modus Operandi
According to her, the "agents" will show their fake websites of genuine organisations once the unsuspecting victims start communicating with them and will usher the victims to create accounts in the cloned-fake websites of some well-known companies.
"There, they show it as if you bought those stocks. They also ask you to buy stocks in large amounts so that if you buy 20-30 Lakhs worth of stocks, then you will get them at a cheaper rate," she said. "So not 10-20 you will have to buy them in that large amount," the Director of Telangana Cyber Security Bureau said.
Goel, who is also handling Technical Services, said the fake website will show the buyers look like their stock is worth growing and that the market value has gone up.
"All of this is fake and if you want to withdraw or sell off your stock, they will say you have to buy some more, if you buy more only then you can withdraw, and that way they don't allow you (to exit). So this way a lot of people, especially youngsters, people working in the software industry, in corporate they are losing a lot of money," Goel, who is also the Director State Forensic Science Laboratory, said.
Lure Of Quick Money
The state cybersecurity bureau has been receiving 50 to 60 calls every day, according to Goel, who said, adding that the wing had so far received 58 calls for that day. Goel said the cumulative loss every day would range between one or two crores. This, she said, "is because people fall prey to the lure of quick money."
Basics Of Stock Trading
First, one should understand that Demat accounts are the basis for stock trading. No company will let you create an account to buy their shares as stocks can be sold only through exchanges.