South Delhi Resident Defrauded of Over ₹16 Lakh in Elaborate Online Investment Scam
A 36-year-old man from Deoli in south Delhi has filed a police complaint alleging he was defrauded of more than ₹16 lakh in a sophisticated online share market investment scam. The elaborate scheme involved fraudsters impersonating top executives of a well-known brokerage firm and using a fake trading application to lure victims with promises of exceptionally high returns.
How the Elaborate Scam Unfolded
The victim told police that in January last year, he came across a sponsored advertisement on social media under the name of a financial firm that promised unusually high returns through over-the-counter stock trading. After clicking the link, he was added to a social media group with approximately 160 members where regular stock tips, profit screenshots, and motivational lectures were shared.
The individuals running the group allegedly posed as the company's top executives, including its managing director, along with a woman introduced as his assistant. This created an atmosphere of legitimacy that helped build trust among group members.
The Fake Trading Platform Trap
In February, the victim was contacted through a video call and persuaded to register on a mobile application that was falsely projected as a SEBI-regulated platform affiliated with the legitimate brokerage firm. This misrepresentation of regulatory approval proved crucial in convincing the victim of the platform's authenticity.
He initially invested ₹49,000 and was allowed to withdraw a small amount, which police say was a deliberate tactic to strengthen his trust in the platform. This initial success made him more susceptible to subsequent requests for larger investments.
Escalating Financial Losses
The victim alleged that he was later induced to invest larger sums for IPO allotments and trading activities. He was asked to transfer money to multiple bank accounts, a common tactic used by fraudsters to make tracking more difficult for authorities.
He further told police that he was pressured to arrange additional funds after being shown inflated share allotments, with claims that internal loans were extended to him. Between February and March, he allegedly transferred a total of ₹16.2 lakh to various accounts controlled by the fraudsters.
The Final Blow and Police Action
On March 12, 2025, when the application reflected a balance of nearly ₹78 lakh, his withdrawal attempt failed as the account was frozen. He was then allegedly asked to pay an undisclosed 20% commission upfront to access his funds. Soon after this demand, all communication with the representatives stopped completely.
An FIR was registered at the cyber police station in South Delhi under Section 318 (cheating) of the Bharatiya Nyaya Sanhita (BNS) on Wednesday. This case highlights the growing sophistication of online investment scams in India's financial capital and serves as a cautionary tale for investors navigating digital platforms.
Rising Trend of Financial Cyber Crimes
This incident represents a growing trend of sophisticated financial frauds targeting Indian investors, particularly through social media platforms and fake trading applications. Cyber criminals are increasingly using impersonation tactics, fake regulatory claims, and psychological manipulation to convince victims of their legitimacy.
The case underscores the importance of verifying the authenticity of trading platforms through official SEBI channels and being cautious of investment opportunities promising unusually high returns with minimal risk. Financial experts recommend that investors should always cross-check registration details of brokerage firms and trading platforms before transferring any funds.
