Cyber Police issue advisory against fake share investment frauds
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The Cyber Police have issued an advisory against rackets orchestrating massive fake investment frauds through the social media by exploiting the names of prominent stock trading institutions.
In an official release, the police stated that fraudsters are luring the public by creating and circulating AI-generated videos of prominent stock market figures and corporate heads on platforms like Facebook and Instagram, promising lucrative returns.
Persons who show interest by clicking on such fake advertisements are added to WhatsApp and Telegram groups under the pretext of teaching them trading in the share market.
Subsequently, the perpetrators send links to fraudulent applications mimicking leading trading companies, and compel the victims to download them. Investors who open accounts on these fake apps and websites are then persuaded to deposit funds in a phased manner.
In order to build trust, the fraudsters initially allow victims to withdraw small amounts of money. Believing in the platform’s legitimacy, investors deposit large sums back into their accounts in hopes of acquiring stocks at heavy discounts. However, once purchased, the scammers force victims to hold the stocks long-term by refusing to let them sell.
Later, when victims attempt to withdraw the funds remaining in their accounts, the fraudsters demand massive additional payments under the guise of processing charges and taxes. The victims only realise they have been duped when their money is withheld despite making the extra payments.
The Cyber Police have advised the public not to fall for such fake promises or unknown links. The wing has also emphasised that stock investments should only be conducted through SEBI-registered authorised institutions.
People who notice such fake advertisements or fall victim to the fraud have been urged to report incidents to the Cyber Police within a ‘golden hour’ of one hour by calling the helpline number 1930 or visiting www.cybercrime.gov.in.
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