Ahmedabad Senior Loses Rs 1.4 Crore in Elaborate Social Media Stock Trading Scam
A 68-year-old retired man from Ahmedabad's Satellite area has become the latest victim of a sophisticated cyberfraud. Scammers duped him of a staggering Rs 1.4 crore by luring him into a fake stock trading and IPO investment scheme. The elaborate con operated primarily through social media and messaging platforms.
The Instagram Advertisement That Started It All
According to the First Information Report filed with Cybercrime police on Thursday, the incident began in September last year. The victim was browsing Instagram when he came across an advertisement. This ad promoted a stock diagnostic report for a commercial vehicle manufacturing company. Intrigued, he clicked on the advertisement.
This simple click redirected him to a WhatsApp group. The group falsely claimed to be associated with a well-known brokerage firm. To build credibility, several members regularly posted screenshots showing impressive stock trading profits. These posts created an illusion of success and trustworthiness.
The Persuasive Investment Assistant and Fake Platform
Soon after joining the group, a woman contacted the retiree. She introduced herself as an investment assistant working for the brokerage firm. She skillfully persuaded him to take a "full membership" for better investment opportunities.
The woman then guided him to open a so-called Direct Market Access account. She instructed him to download a mobile application that closely mimicked a legitimate trading platform. The scammers even assisted him in creating login credentials, making the process seem professional and genuine.
Multiple Transfers and False Profits
Over the following weeks, the victim transferred money in multiple instalments. He sent funds to different bank accounts shared by the group's administrators. Believing his money was being invested in stocks, he continued to deposit large sums.
The fraudulent application displayed steady profits, which encouraged him to invest even more. Between November and December, he transferred approximately Rs 1.4 crore in total. The fake profits shown on the app reinforced his belief in the scheme's legitimacy.
The Scam Unravels with IPO Pressure
The fraud finally came to light when the scammers escalated their demands. They pushed the victim to invest in a high-value Initial Public Offering. Later, they demanded an additional Rs 1.6 crore, citing allotment requirements and various service charges.
This excessive demand raised the retiree's suspicions. When he refused to pay more and demanded the return of his principal amount, the accused suddenly stopped all communication. Their silence confirmed his fears.
Police Action and Legal Charges
Suspecting a major fraud, the victim contacted the cybercrime helpline. He subsequently lodged a formal complaint with the authorities. Cybercrime police have now registered a detailed FIR.
The case has been filed under sections of the Bharatiya Nyaya Sanhita for cheating, criminal breach of trust, and criminal conspiracy. Additional charges have been applied under the Information Technology Act. Investigators are actively pursuing the digital trail left by the scammers.
This case serves as a stark warning for all citizens, especially seniors navigating online investment opportunities. Experts advise extreme caution when encountering unsolicited investment offers on social media. Always verify the authenticity of trading platforms and brokerage firms through official channels before transferring any funds.
