Beware of Fake Forex and Stock Trading Apps: Cyber Fraudsters Lure Investors with Promises of High Returns
As awareness grows about investment scams and the infamous FedEx courier scam, cyber fraudsters have now come up with a new tactic to cheat gullible investors – fake forex and stock trading mobile applications. These apps promise huge returns, but ultimately leave investors empty-handed.
According to a senior police official, there have been several cases reported recently, where people have lost money by investing in these fraudulent apps. Once an individual invests through the app, it shows the investment growing with impressive returns, giving a false sense of security. However, when investors try to withdraw their money, the app operators refuse to release the funds. In reality, the invested money is siphoned off and not invested anywhere.
Recent Cases
Two businessmen in Bengaluru fell victim to this scam. The first victim, Chetan M., a 45-year-old resident of Banashankari 2nd Stage, met a woman named Hasini Ravichandran on a dating website. Hasini, claiming to be employed in an architecture firm, introduced Chetan to forex trading platforms. She even offered to teach him some trading tricks and helped him create a telegram customer service ID. Trusting her, Chetan transferred a total of ₹1.63 crore through different accounts in December. As he noticed a growth in his investment, he became excited and attempted to withdraw the money, only to find his funds blocked. The investment firms then asked him to pay lakhs in taxes and service charges to access his investment and profit. Chetan soon realized that he had been scammed.
In a similar case, Rajendra Kumar, a 39-year-old businessman from Shankarapuram, was introduced to online trading and invested ₹36.5 lakh in Blackrock Investment in December. Within a month, his account showed a total of ₹4.5 crore. However, when he tried to withdraw the funds, he hit a roadblock. The firm representatives instructed him to invest an additional ₹40 lakh to gain access to his investment account. Unfortunately, he lost this amount as well.
The South Division Cyber Crime Police have registered separate cases against the scam operators under the IT Act, 2000, as well as for impersonation and cheating.
A Warning to Investors
These cases are just a fraction of the many instances of the same scam happening in recent times. A senior official has urged investors to be cautious and only invest through reputable stock and forex trading apps. The official also emphasized the importance of conducting thorough research before investing and to seek advice from financial experts to avoid falling victim to such fraudulent activities.
It is crucial for investors to stay alert and not be enticed by promises of quick and significant returns. As technology advances, it becomes increasingly important to remain vigilant against cyber fraudsters who continue to find new ways to deceive unsuspecting individuals.
Analyst comment
Negative news. The market may experience a decrease in investor confidence in forex and stock trading apps, leading to a decline in investment through such platforms. Investors will likely become more cautious and rely on reputable apps, conducting thorough research and seeking advice from financial experts to avoid falling prey to fraudulent activities.
