Introduction
Investment scams are fraudulent or deceptive schemes, that are designed by fraudsters to deceive individuals and trick them into making investments that either do not exist or are misrepresented. These scams often prey on people's desire to grow their wealth or earn high returns on their investments.
These investment scams usually misuse the individual’s desire for wealth and earn good returns in a short time. The fraudsters operating such scams often promise high returns, exclusive deals, or insider information to entice individuals into parting with their hard-earned money. The fraudsters employ persuasive tactics, such as presenting fake credentials, testimonials, or financial reports, to make their offers seem legitimate and appealing.
- A Recent incident
In a recent case of investment fraud, a family in Surat, Gujarat, was duped out of ₹89 lakh by an investment firm. The family, led by Hiren Patel, invested over ₹1 crore in Samir Capital and Holdings Pvt Ltd, lured by promises of high returns in the stock and gold markets. Initially, the firm provided regular returns, but soon the payments became irregular, and eventually, the firm stopped responding altogether. The firm's director, Mohammad Samir, shut down the office and disappeared, leaving the family and other investors without their money. The Vesu police have filed a case of cheating and conspiracy against Samir and other directors of the company
For more information, Kindly refer the link :- https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf
News Clippings with sources
Incident 1
Ref.: IAS officer falls victim to investment scam; loses over Rs 1 crore - The Economic Times
Incident 2
Ref.: Investment Fraud: Investment Scam: Surat Family Loses Rs 89 Lakh to Fraudulent Firm | Surat News - Times of India
Incident 3
Ref.: Rs 854-crore online investment scam busted and 6 people arrested, say Bengaluru police | Bangalore News - The Indian Express