In a stark warning about the perils of online investment schemes, two separate cases in Karnataka have seen victims collectively lose over Rs 1 crore to sophisticated fraudsters operating through social media platforms. The scams, which promised high returns from share market and e-commerce investments, have left a former lecturer and a young man significantly poorer and prompted police action.
The Mangaluru Lecturer's Rs 85.6 Lakh Ordeal
A 44-year-old former lecturer from Mangaluru was systematically cheated of a staggering Rs 85.6 lakh after being ensnared by fraudsters on Instagram. The incident began when he encountered a link on the platform offering online training for share market investments. After registering his interest, he was added to a WhatsApp group on October 31.
In the group, a woman who identified herself as Kavya claimed to be an assistant with a financial company. Members of the group, including the accused, aggressively promoted stock market investments, suggesting that investors could potentially double their money. Lured by these promises, the victim decided to proceed.
He was instructed to download specific mobile applications and register with his personal details. After making initial investments and receiving small profits, his confidence grew. This classic 'confidence trick' led him to transfer increasingly large sums. Between November 11 and December 9, he transferred the entire Rs 85.6 lakh via UPI and NEFT to bank accounts provided by the scammers.
The scheme collapsed when, on December 10, he asked for his money back. The fraudsters then demanded a 'service tax' payment, which aroused his suspicion. Upon refusing to pay more, he realized he had been cheated. A formal case has been registered at the CEN Crime police station in Mangaluru.
Brahmavar Man Loses Rs 15.9 Lakh in E-Commerce Trap
In a disturbingly similar case in Udupi district, a 30-year-old man from Brahmavar was defrauded of Rs 15.9 lakh. The victim, Arun Acharya, saw an advertisement on his Instagram feed on July 22, 2024, promoting lucrative opportunities in e-commerce, digital marketing, and dropshipping.
After contacting the number in the ad, he was guided via WhatsApp on how to invest to earn profits. Mirroring the first scam, he was initially paid high returns on his investments, building a false sense of trust. Believing the operation to be genuine, Acharya continued to invest substantial amounts between September 2024 and December 19, 2024.
He transferred a total of Rs 15.9 lakh in phases through NEFT to the company's bank accounts. However, once the payments were made, the accused cut off communication, failing to return either the promised profits or the principal investment amount. The Brahmavar police have registered a case under Sections 66(C) and 66(D) of the IT Act.
Common Red Flags and Police Action
These two cases highlight a dangerous trend of investment fraud originating on social media. The scams share several alarming similarities:
- Social Media Lure: Both schemes used Instagram ads or links as the initial point of contact.
- WhatsApp Coordination: Operations quickly moved to WhatsApp groups for private communication and promotion.
- Small Initial Payouts: Victims were given early profits to establish credibility and encourage larger investments.
- Vague Companies: The fraudsters operated under the guise of unnamed or fake companies.
- Pressure to Transfer: Large sums were moved via UPI and NEFT to individual or company accounts.
The police have urged the public to exercise extreme caution when encountering unsolicited investment opportunities online. They advise verifying the legitimacy of any company through official channels, being wary of promises of guaranteed high returns, and never sharing personal banking details or transferring money to unverified entities. Investigations into both cases are ongoing.
