WhatsApp stock market trading scam: How to stay safe
What's the story
A surge in the stock market has led to an increase in first-time investors, creating an opportunity for fraudsters to exploit.
These scammers are using platforms like WhatsApp and Telegram to execute their schemes.
Recently, a 71-year-old retired financial professional from Mumbai was duped in a stock market scam on WhatsApp, resulting in a loss of nearly ₹2 crore.
Scam strategy
Scammers lure victims with fake investment opportunities
The fraudster, a woman, approached the senior citizen on WhatsApp, offering a chance to invest in the equity market.
She provided him with a counterfeit mobile application that resembled a well-known investment firm's app.
The scammer also created a WhatsApp group where several individuals regularly boasted about their supposed returns from share trading, based on her advice.
This deception led the victim to transfer nearly ₹2 crore over 24 transactions within a month.
Scam unraveled
Fake account statements and withdrawal tax raise suspicion
The victim was shown a fabricated account statement that indicated he had earned ₹14 crore. However, when he tried to withdraw some money and was asked to pay more in the form of withdrawal tax, he became suspicious.
The case is currently under investigation by the police.
Kotak Securities, one of India's largest brokerage houses, has issued a warning against dealing with unknown individuals claiming affiliation with the firm.
Fraud alert
Brokerage houses warn against impersonation scams
In a statement, Kotak Securities revealed that unethical entities have been conducting fraudulent activities, using Indian and international mobile numbers and social media platforms.
They falsely claim association with reputable financial institutions like Kotak Securities and display fake certificates allegedly issued by regulators or exchanges.
The firm's spokesperson informed that several brokerage houses have received numerous complaints about impersonation scams targeting unsuspecting investors.
Investor guidance
Experts advise caution against too-good-to-be-true schemes
Investors are advised to be wary of schemes promising high returns with low risk.
Manthan Shah, managing partner at Wish Worth Wealth, warns that anything that seems too good to be true is usually a warning sign.
He also cautions against transferring large sums without due diligence and advises investors to avoid clicking on suspicious links or attachments in WhatsApp messages, as they could lead to phishing scams.