Millions of Indians use WhatsApp on a daily basis. It is a convenient communication tool. But where there is a crowd of people, it is inevitable that fraudsters will also come to dupe them. Due to the large number of users, it has become a petri dish for fraudsters, especially those who are luring people with fake investment schemes nowadays.

The idea seems simple: with the stock market booming and everyone talking about stocks and equities and some people feeling FOMO, scammers are trying to lure people into their get-rich-quick schemes. And then when some money comes in, they disappear with it. Tens of thousands of people have lost millions of rupees to these WhatsApp fake investment schemes in recent times.

How the WhatsApp investment scam unfolded

In the last few weeks, we have come across several reports of people losing lakhs and crores of rupees in the name of investments via WhatsApp. One such case is of a 60-year-old retired resident of Mumbai, who recently fell prey to a sophisticated trading scam in which he lost Rs 2.56 crore. The scam started with a WhatsApp message from an unknown number, adding the victim to a group called “KK (Fortune Center)” in December 2023. The group made the victim believe its association with a reputed US investment firm.

The scammers directed the victim to create a virtual account on a fake website, which later showed fake profits to the victim to build trust. Encouraged by the initial profits, the victim invested more and eventually transferred significant sums of money to the fraudsters’ accounts. When the scammers claimed that the company had suffered losses and demanded more money, the victim’s access to the virtual account was blocked.

In another case, a 35-year-old bank manager from Coimbatore lost Rs 48.57 lakh after he was contacted by an unknown sender on WhatsApp. Initially offered a part-time job opportunity, Krishnaraj was soon introduced to online trading with promises of high returns. Over several months, he made several investments, but was told he would have to pay more to withdraw his money.

There are many more such cases where people were contacted on WhatsApp and then fell into the trap. One of our colleagues at India Today also received a similar WhatsApp message one day adding him to an investment group and there were many other individuals in the group. At first the group seemed legitimate with a good description citing a large financial firm. However, it was clearly fake and our colleague immediately blocked the group.

You can see the screenshot of the group below.

While our colleague acted vigilantly, there are people who fell into this trap and were duped on the web. Once they joined the group, the scam proceeded following a sophisticated mechanism. These WhatsApp investment scams usually follow a similar pattern:

Initial contact on WhatsApp

The scam begins with an unsolicited message from an unknown number, often offering a part-time job or investment opportunity.

building trust

The victim is added to a WhatsApp group where scammers, posing as legitimate financial advisors, share detailed investment tips and success stories.

Creating virtual accounts

Victims are directed to create virtual accounts on fake websites displaying bogus profits to encourage further investments.

Big Investments

Believing in the legitimacy of the scheme and the initial profits, victims end up investing larger sums of money.

Blocking withdrawals

When victims try to withdraw their funds, the scammers demand additional payment from them and after the payment, victims’ accounts are blocked.

It is important to be cautious

Although these scams are complex, there are some steps that can help people avoid becoming victims:

– Be wary of unsolicited messages offering investment opportunities, especially those that create a sense of urgency or promise unrealistic returns.

– Always independently verify the validity of any investment opportunity. Check information with trusted financial advisors or official sources.

– Never click on links or download files from unknown senders, as these may be malicious.

– Do not share personal details such as bank account information, address or phone numbers with unknown contacts or groups.

– Report any suspicious messages or groups to WhatsApp and local law enforcement authorities. WhatsApp has several privacy and security features that allow you to block and report accounts that violate its terms.

Inevitably, some caution is required. By following these precautionary steps, you can avoid falling victim to WhatsApp investment scams.