A man from Udupi recently became a victim of an online investment scam. According to the victim, he was added to a WhatsApp group named “C22 Investment Alliance Trading” by unknown persons. According to a report in Deccan Herald, the man remained in the group because of the promise of giving him tips about the stock market and trading, which would help him make more money. He believed the group to be legitimate and after some time he started interacting in the group. After a few days he suffered a loss of Rs 14 lakh!

What happened? Once the scammers realized that the Udupi man was gullible enough, he was duped into installing an app called “Causeway” and then transferred his funds to multiple bank accounts for more profitable stock trading. But when they tried to withdraw their so-called “profits” they were denied access as the scammers locked them out of the app, leaving them with no way to get their money back.

This is not just a story. The Hindu had recently written a similar story. A 63-year-old man in Hyderabad faced a similar situation, causing a huge loss of Rs 50 lakh. The victim was added to a WhatsApp group named “Stock Discussion Group”, where the group administrator introduced himself as a financial advisor. The admin promised tips and claimed a 500 percent improvement in returns. Impressed, and believing all this to be true, the old man began investing in a platform called “Skyrim Capital”. Initially, the victim made good profits and was happy with the results. However, when he attempted to withdraw his profits, he discovered that his money had disappeared, and his login credentials had been deactivated, leaving him unable to access his money.

What is happening?

Well, the story seems pretty straightforward: In both these cases, the victims were previously added to a WhatsApp group by unknown persons. They were promised high returns and their greed was aroused. They started investing their money in an app that scammers had created specifically to defraud people. And then by the time they realized something was wrong, they were locked out of the app.

With social media platforms like WhatsApp and Telegram, it has become easier than ever for scammers to connect with individuals and lure them into a financial trap.

Although no specific age group is being targeted, we often see the elderly – who may be less familiar with technology – falling victim to these scams. Even some employees of India Today Tech were added to these groups, but we remained alert and we blocked and reported these groups. You can read more about it here: WhatsApp is the new hotbed for investment scams, with users losing lakhs of rupees on fake schemes

But it seems that despite numerous warnings about online scams from cyber crime branches, police and media, scammers are still managing to take advantage of people’s vulnerabilities as phone and computer users ignore red flags and fall into these scams. Fall into the trap of deceptive techniques.

How can you protect yourself from such scams?

Protecting yourself from these scams is easy – avoid trusting unknown persons online. As time passes we are seeing scammers weaving these scams in a more sophisticated manner. Therefore, it is important that people be careful online to protect themselves from falling into such traps.

Here are some safety tips to consider:

• Have you seen those big ads for mutual funds and investments? Well, you must have seen a big warning regarding the risks related to investment. Legitimate financial advisors never promise guaranteed returns, and they certainly don’t advertise returns over 500 percent. If you see someone claiming big returns, it is a 1000 percent red flag.
• Use only legitimate investment platforms or apps listed on trusted app stores like Google Play or Apple’s App Store. Unknown apps, especially those recommended through social media links, can often be malicious and can often even give hackers access to your device. Stay away from APKs if you don’t know what you are doing.
• If you are really interested in stock market trading and investing, seek advice from a certified financial advisor or a trusted family member. Professionals can guide you on legitimate investment opportunities and help you avoid risky schemes.
• Remember that messaging apps are not an appropriate place for serious financial advice. Avoid joining any investment group unless they are verified by a reputable institution. If you are added to any such group without your consent, leave immediately and report it. It’s still better to change this WhatsApp setting:
• Most importantly, remember that older adults are especially vulnerable to online scams. So for their safety, encourage your elderly family members to understand the risks of online trading scams and advise them to avoid financial advice groups on social media.