Hundreds duped in 'Trump Hotel Rental' scam: What is it?
What's the story
In a major con, over 200 people across Karnataka have been duped of nearly ₹2 crore by a fake mobile app called Trump Hotel Rental.
The app, which used AI-generated pictures of US President Donald Trump to appear credible, promised high short-term returns as part of a luxury hotel investment scheme.
The fraud was particularly prevalent in areas like Bengaluru, Tumakuru, Mangaluru, Haveri, Hubballi, Dharwad, Kalaburagi, Shivamogga, Ballari, and Bidar.
Fraud strategy
Scam operated on a pyramid-like model
The Trump Hotel Rental app operated on a pyramid-like scheme.
Haveri Superintendent of Police, Anshu Kumar said, "By offering small returns, they gain the user's confidence, then promise higher returns at the next level and coax users into investing more before disappearing."
The app lured users with a nominal registration fee of around ₹1,500 and promised small returns initially to build trust.
Deception
Victims were promised high returns for increased investments
As users invested more money, often running into lakhs, the app would stop working and its promoters would vanish.
One Bengaluru-based lawyer claimed he had invested ₹6 lakh over four months only to be duped.
The scam extended beyond fake investments as some users were given fake 'work-from-home' jobs such as writing company profiles with inflated earnings on their dashboards.
Investigation
Police suspect more victims yet to come forward
Despite over 15 cases registered in Haveri alone, police believe many more victims are yet to come forward.
The app and all its digital assets have been taken down but authorities caution that similar scams might reappear under different names.
Investigators are now analyzing digital footprints to trace the perpetrators of this elaborate fraud scheme.