Hyderabad cyber crime unit arrests accused in stock trading fraud

Hyderabad (Telangana) [India], April 1 (ANI) : The Hyderabad Cyber Crime Police have arrested an accused, Shiva Shankar, involved in an online stock trading scam that defrauded a private employee from Hyderabad of over Rs14.6 lakh. The fraudster contacted victims through social media, promising high returns on stock investments. The case highlights the growing issue of online scams targeting unsuspecting investors, according to a release by Dy. Commissioner of Police Cyber Crimes.
The accused is allegedly involved in two cases across India and one case in Telangana, was arrested under various sections of the IT Act and the Indian Penal Code. He is the account holder and supplier in the fraudulent activities.
According to a police official," The victim, a 35-year-old Private employee from Hyderabad, received a WhatsApp message from the numbers offering online stock investment ideas for the stock market. The fraudster provided a link to join their WhatsApp group, where they claimed to offer institutional stocks, OTC stocks and Samco group stocks, promising high profits in a short time. Believing their promises to be genuine, the victim proceeded to transfer a significant amount of money from his bank accounts."
"The scammers claimed that his investments were in bulk stocks and IPOs, which would yield a huge profit of 20 per cent on his invested capital. On their application, he could see apparent profits. However, when he decided to withdraw his profits, they informed him that the amount was still tied up in the so-called IPOs. When he insisted on withdrawing his earnings, they demanded that he deposit an additional amount. At this point, he realized it was a scam and demanded a refund. He attempted to contact them via phone and messages, but they did not respond. Eventually, they blocked his access to chats and calls. In total, the victim lost Rs14, 63,046/-(fourteen lakh sixty-three thousand forty-six rupees only)," said in a statement.
The police said, fraudsters are contacting victims through social media platforms, the Telegram app, and WhatsApp calls and messages. They offer double or triple the profits in a short time through stock market trading. Initially, they show huge returns in their application and allow withdrawals to a certain extent. They then propose investment opportunities with huge profits and lure the victim to invest more by showing virtual profits. However, once the victim invests, the fraudsters block further withdrawals.
The police further said that scammers often approach victims through various social media platforms, including Telegram, WhatsApp, X, Instagram, and Facebook, advertising fake investment apps or websites. These schemes are fraudulent and lack SEBI's endorsement. Fraudsters use simple tactics, such as showing fake profit screenshots and promising high returns, to lure unsuspecting investors. Initially, they may deposit a small amount into the victim's account to build trust. (ANI)