Thiruvananthapuram | Kerala police on Wednesday warned the public of a surge in online trading scams on social media, where fraudsters lure investors with promises of unrealistic returns.
The police cautioned people against falling for claims of "100 per cent profit", "guaranteed returns" and "premium IPO allotments".
In an advisory issued through Facebook, the police said scammers use advertisements on platforms such as Facebook, Instagram and YouTube to lure victims before directing them to WhatsApp or Telegram groups through links.
Posing as "investment mentors" or "financial analysts", the scammers conduct daily trading classes and share stock market tips to gain the trust of potential investors, it said.
According to the advisory, the fraudsters initially allow victims to make small profits through their own demat accounts to build confidence and encourage them to invest larger amounts.
They then persuade investors to install fake trading applications using the names of reputed financial institutions, promising discounted stocks and IPO allotments.
Victims are subsequently asked to transfer money through UPI, IMPS, RTGS or NEFT to multiple bank accounts on the pretext of opening "institutional accounts" or "VIP trading accounts", it said.
The police said these fake applications display fabricated investment returns, making victims believe that their investments are genuine.
When investors try to withdraw their funds, the scammers demand additional payments under various pretexts, including income tax, service charges and withdrawal fee. They eventually block access to the accounts, denying victims both their investment amount and the promised returns.
The police urged the public not to invest money solely based on claims made on social media or advice shared through WhatsApp and Telegram groups.
It advised investors to carry out stock market transactions only through brokers registered with the Securities and Exchange Board of India and authorised trading platforms.
People were cautioned against transferring money to unknown applications or personal bank accounts and paying additional charges to withdraw investments.
The police urged victims of cyber financial fraud to immediately report such cases through the national cybercrime helpline number 1930 or by filing complaints on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in), it added.
Mumbai | Police have arrested a 26-year-old student for allegedly developing the APK files used in an inter-state cybercrime racket that duped thousands of people across the country to the tune of over Rs 60 crore, an official said on Wednesday.
The case came to light after the Dr D B Marg Police here received a complaint that an unidentified person was sending fake messages in the name of Mahanagar Gas Limited, asking recipients to install a malicious APK file.
Once installed, the application was used to steal confidential mobile banking information. The complainant had lost Rs 70,500 in this way.
Police tracked down the accused, identified as S K Mandal, in West Bengal and seized 10 mobile phones, a laptop, seven SIM cards, four credit/debit cards and a database containing confidential banking information of 37,200 individuals.
Mandal, who hailed from Jharkhand, had created as many as 967 fraudulent APK files and sold 91 files to other members of the cybercrime network. These files were allegedly used to cheat 5,912 people across India, including 512 victims from Maharashtra.
The total amount involved in the fraud has been estimated at Rs 63.69 crore, the police official said, adding that further investigation is underway.
