In a shocking case that highlights the growing sophistication of online financial fraud, a Bengaluru civil contractor has been duped of a massive ₹5.35 crore in an elaborate online trading scam that spanned several months.
The Elaborate Scheme Unfolds
The victim, identified as Mahesh P, a resident of HBR Layout and owner of MP Associates, first encountered the fraudsters in October 2023 through the professional networking platform LinkedIn. The scammers, posing as successful financial traders, gradually built his trust over time before introducing him to what appeared to be legitimate trading opportunities.
The modus operandi involved multiple layers of deception:
- Initial contact through professional social media platforms
- Building rapport and trust over several weeks
- Introduction to fake trading applications and websites
- Showing manipulated returns to create false confidence
- Encouraging larger investments with promises of higher returns
How the Scam Operated
According to the complaint filed with the Bengaluru Cyber Crime Police, the fraudsters directed Mahesh to download several trading applications including 'FxPro', 'Vstar', and 'MultiBank FX Group'. These platforms displayed impressive but completely fabricated returns, creating the illusion of profitable trading.
The victim was initially able to withdraw small amounts, which reinforced his belief in the legitimacy of the operations. This classic scam tactic, known as 'proof of concept,' is designed to lower victims' guards before larger investments are requested.
The Financial Drain
Between October 2023 and May 2024, Mahesh transferred substantial amounts totaling ₹5.35 crore through various payment methods:
- Multiple UPI transactions to different accounts
- Bank transfers to suspicious merchant IDs
- Payments through various payment gateways
The reality of the scam became apparent when the fraudsters began demanding additional payments under the guise of 'GST charges', 'other government taxes', and various processing fees. When Mahesh attempted to withdraw his funds, the excuses began pouring in, and eventually, all communication channels went dead.
Police Investigation Underway
The Bengaluru Cyber Crime Police have registered a case and launched a comprehensive investigation into what appears to be a well-organized international scam operation. Authorities are examining the digital trail, including:
- Bank account transactions and beneficiary details
- Digital footprints left by the fraudsters
- The fake trading applications and websites
- Communication patterns and social media profiles
This case serves as a stark reminder to all online investors: Always verify the authenticity of trading platforms through official regulatory bodies, be wary of unsolicited investment advice on social media, and remember that if returns seem too good to be true, they probably are.
