Get Rich by Trading Stocks Scam

Background

In July 2024, the Ahmedabad Police, in collaboration with the Enforcement Directorate (ED), uncovered a major fake stock brokerage scam that duped over 300 victims. The fraudsters operated a fake brokerage firm, convincing investors to put their savings into what they believed were blue-chip stocks. Instead, the money was funneled into personal accounts.

The Scam Unfolds

The scammers created a professional-looking website and used social media ads to lure victims with promises of high returns from stock trading. They initially provided small returns on minor investments to build trust. Victims were then encouraged to invest larger sums of money, believing they would receive substantial profits. However, when they tried to withdraw their funds, they found that their money had vanished, and the scammers were unreachable.

Investment and Loss

One of the victims, a 32-year-old woman from Delhi, was scammed out of ₹23.5 lakh. She came across the website on social media and initially invested ₹1,000, receiving a return of ₹1,300. Encouraged by this small success, she invested a larger amount. However, after transferring more money, the scammers stopped responding to her calls.

This case study underscores the importance of vigilance and verification in preventing such scams. Stay informed and protect yourself from falling victim to these fraudulent schemes.

Reference:

1. SEBI Investor | Investments: Staying away from Investment Frauds

2.Get rich quick schemes? Know about these investment scams and tips to stay safe - Times of India

3. Share trading cyber scam: Dreaming of becoming rich, three in Mumbai lose Rs 2.37 crore | Mumbai News - The Indian Express

4. Share trading cyber scam: Dreaming of becoming rich, three in Mumbai lose Rs 2.37 crore | Mumbai News - The Indian Express