SCAMSPLAINER: Online Trading Scam
After pandemic, online trading has become very popular. Many people see it as an easy way to make quick money by investing in stocks, forex, or cryptocurrency.
Social media and YouTube are full of ads and influencers promising huge returns with little effort. But with it, online trading scams are increasing every day, and many people are losing their savings because of fake trading platforms and fraudulent investment schemes.
Take example of a businessman in Bhopal, named Vimal Goswami. He was scammed of Rs. 47.29 lakh by cyber fraudsters on the pretext of online trading.
He was also approached by someone who added him into a WhatsApp group of around 102 others. In that group they shared a link to download a “trading” app.
Once he installed it, the app looked like a genuine online trading platform and he was encouraged to start with a small deposit. He put in Rs 15,000, then another Rs 26,000.
At first he saw “profits” on the app. Because of that, he trusted the platform. The scammers then asked him to deposit a much larger amount, promising double or triple returns. Vimal transferred a total of Rs 47.29 lakh via NEFT and RTGS to seven different bank accounts.
After that he never saw real returns, and eventually the app stopped functioning altogether. He understood he was scammed.
How It Works?
The scam usually begins with attention-grabbing advertisements on social media. It shows someone claiming to have made big profits from trading and offers to teach others how to do it. Sometimes, the ad leads to a fake trading website that looks very professional or some WhatsApp/Telegram Groups.
The victim is asked to deposit a small amount first, maybe a few thousand rupees, and at first, they even see fake profits on their dashboard.
This builds trust, and the scammer then encourages them to invest more money, promising even higher returns. But once the victim deposits a big amount, the website suddenly stops responding, or the account gets blocked. All the money disappears.
In some cases, scammers create fake trading apps that are not listed on official app stores. They send download links through WhatsApp or Telegram, pretending to be authorized brokers.
These apps show fake profits and transaction histories, making the victim believe they are earning money. Some people are even tricked into sharing their identity documents, bank account details, or one-time passwords, which are later misused for further fraud.
These scams work because fraudsters use psychological tricks, such as showing fake success stories and putting pressure to “invest now before the offer ends.” Once the victim realizes what has happened, the scammers vanish, leaving no trace.
How to be safe?
To stay safe, it is important to remember that genuine trading platforms are registered with SEBI or other regulatory authorities.
Always verify the website or app before investing.
Never trust random messages, online groups, or unknown mentors who claim to double your money. Real trading involves risk, effort, and time, not shortcuts.
Online trading can be a good way to grow your money if done carefully through legal platforms. But one wrong step can lead to a major financial loss. Staying alert and doing proper research before investing can protect you from falling into these traps.
