Mangaluru: ‘Online stock market’ fraud cases rise; residents lose Rs 20 crore in 6 months

Team Udayavani, Jul 22, 2024, 10:46 AM IST

Representative image (Source: iStock)

Mangaluru: Cases of online financial fraud under the guise of “stock market trading companies” are significantly increasing. Fraudsters use attractive advertisements on social media platforms like Facebook to lure victims into fake stock market schemes.

Individuals with little knowledge of the stock market, curiosity, and a desire to earn high profits easily fall prey to these scammers, losing substantial amounts of money.

Man loses Rs 5 Crores!

A man, who had returned to Mangaluru after working abroad, saw an advertisement for “Federated Hams Share Trading Company” on Facebook. Out of curiosity, he clicked on the link and was subsequently added to a WhatsApp group by the “trading company.” Soon, he was added to another WhatsApp group where the group admin provided information related to the stock market.

Messages in the group depicted several people conducting transactions, which convinced the man that he could also make significant profits. Following the fraudsters’ instructions, he invested money on April 15. He continued investing in stages until June 7, losing a total of 5 crores.

Appearing to Show Profits

In another similar case, a victim lost Rs 1.5 crores to a fraudulent stock market investment company. The individual had noticed an advertisement for “Jefferies Wealth Multiplication Plan” on Facebook and entered his mobile number after answering some questions. A few days later, he was added to a WhatsApp group named “Jefferies Wealth Multiplication Center-223.”

Members of this group posted screenshots showing profits from stock investments, which inspired the complainant to invest. Following the admin’s instructions, he opened a “VIP Trading Account.”

From May 28 to June 28, he transferred a total of 1.5 crores to accounts provided by the fraudsters from various bank accounts. When he attempted to withdraw his investment, it was not possible, and the chief admin became unreachable.

Pawning Jewelry to Trade

Recently, a woman secretly invested Rs 50 lakhs in an “online stock market” company. She even pawned her household jewelry. After realizing she had been defrauded, she lodged a police complaint.

Mobile Addiction Leads to Fraud

According to police, continuous scrolling on social media on mobile phones makes individuals susceptible to such scams. Victims of recent stock market fraud cases were found to have a habit of frequently browsing social media.

Rs 20 Crores Defrauded in 6 Months

“In Mangaluru, more than 200 cases of online investment fraud have been reported over the past six months, with losses totaling 20 crores. Fifteen individuals have been arrested in connection with these cases, and Rs 1.5 crores have been recovered for the complainants. One case has been referred to the CID,” said Satish, Inspector, CEN Police Station, Mangaluru.

To avoid falling prey to online financial scams, people should refrain from clicking on links related to investments on social media. If they do, they should not transfer any money, he advised.

“If an online fraud is detected, immediately report it by calling the helpline at 1930. Public awareness about online fraud needs to be increased,” he urged.

Translated from a Kannada article by Santosh Bollettu