Telangana: Cons dupe people of Rs.27.40 crore through cyber crime in 2023

HYDERABAD: The Telangana State Cyber Security Bureau has issued a warning to investors regarding a rise in fraudulent activities targeting individuals through digital trading platforms. These scams often involve fake promises of securing pre-allotment in upcoming Initial Public Offerings (IPOs) through institutional investments.

Modus operandi of scammers

Fraudsters typically lure potential victims through messaging apps like WhatsApp, Telegram, Instagram, and Twitter. They entice investors with the promise of high returns on IPO investments supposedly facilitated through institutional channels like Foreign Portfolio Investors (FPIs). Once victims express interest, they are directed to download fake trading applications. These applications grant fraudsters access to personal and financial information, allowing them to deceive victims into transferring funds to their designated bank accounts. The fake apps display bogus investment portfolios to further lure victims into investing more. However, when victims attempt to withdraw their supposed profits, the requests are denied, resulting in significant financial losses.

Surge in scam cases

In 2023, authorities reported 627 such cases with a total loss of Rs 3.91 crore. As of 2024, there have already been 213 cases, amounting to a loss of Rs 27.4 crore.

Recently, a businessman from Kukatpally lost Rs 5,98,60,000 after joining a WhatsApp group called "Goldman Sachs Business School" and investing in an unauthorised app called 'GSIN'.

Similarly, another businessman from New Bowenpally lost Rs 67,50,000 after joining a WhatsApp group called "82 Strong Stocks Academy" and investing in an unauthorised app called 'Goomi.apk'. He was promised pre-allotment of the "Mobikwik" IPO.

Sharing other examples, the bureau said that a private employee from Rajendranagar lost Rs 50,61,200 after joining two WhatsApp groups and investing in unauthorised apps, hoping to get pre-allotment of newly listed IPOs.

A software engineer too from KPHB lost Rs 1,03,40,000 after joining a WhatsApp group named "Stock Market Research Institute" and investing in an unauthorised app called 'Wells Pro'. He was promised pre-allotment of the 'Konstelec' IPO through Foreign Institutional Investment.

Precautionary measures you should take

• To avoid falling victim to these scams, the Telangana State Cyber Security Bureau advises investors to:
• Follow guidelines set by regulatory bodies like SEBI, stock exchanges, and licensed stockbrokers.
• Only trade through reputable and regulated stock exchanges.
• Choose licensed and trustworthy SEBI-registered stockbrokers.
• Open a Demat account with trusted brokers in NSE and BSE before trading stocks.
• Avoid using unauthorised apps without a Demat account.
• Report any suspected fraud immediately to the 1930 call center, cybercrime.gov.in, or the nearest police station. Prompt action can help recover lost funds and assist authorities in identifying and apprehending the criminals.