In another case of stock market scam, a 75-year-old retired ship captain from Colaba, Mumbai was defrauded of Rs 11.1 crore. The victim was first added to a WhatsApp group by an unknown person, who later promised him investment advice and earning good money through stock market investments. However, when the victim fell for the fake promises of the scammers, they managed to dupe him by convincing him to invest in a fake app.

As per the ET report, the scam started on August 19 when the victim’s mobile number was added to a WhatsApp group with the name of a reputed financial services company. The group administrator introduced herself as Anya Smith and regularly shared investment strategies and stock market opportunities. Seeing the messages and activities of other group members led the victim to believe that the group was trustworthy. Being an experienced stock market investor, he expressed interest in their trading platform.

Sensing the victim’s interest, the scammers added him to another WhatsApp group and shared a link to download the company’s trading app. Once the victim downloaded the app, he started receiving messages about various investment opportunities including institutional account trading, OTC trading and IPOs. The scammer also introduced the victim to his associates, who convinced him to transfer money to multiple bank accounts to invest in the recommended stocks.

According to the report, between September 5 and October 19, the victim made 22 transactions in which a total of Rs 11.16 crore was transferred to multiple bank accounts. When he questioned the use of different accounts, the scammers told him it was to “save tax”.

A few days later, the victim was asked to pay 20 percent service tax on his investment to withdraw his funds. However, despite paying this amount, the fraudsters kept demanding additional fees under various pretexts. Realizing that something was wrong, the victim visited the headquarters of the financial services company, where he learned that he was working with a fraudulent group. After this he contacted the police and lodged a complaint.

This case highlights another example of how scammers take advantage of people’s interest in stock market investing and the lure of quick earnings. Scammers create fake WhatsApp groups using the names of reputable companies, luring victims into investing in fake, malicious apps. Even people familiar with the digital field are falling prey to these tactics.

Follow these important tips to avoid such scams:

– If you want to invest in the stock market or through any app, then always check the validity of the app or platform. Check out their official website and contact the company directly through official channels.

– If you have been added to an unfamiliar WhatsApp group, avoid joining or clicking on links shared by unknown persons.

– Schemes promising high returns in a short period are usually a red flag for scams. If it sounds too good to be true, it probably is. If in doubt, consult a financial advisor.