Visakhapatnam: Despite ongoing awareness campaigns, investment-related financial cyber frauds continue to surge across Andhra Pradesh. Alarmingly, a majority of victims are educated and tech-savvy individuals who fall prey to promises of quick returns. Cyber criminals exploit psychological vulnerabilities, siphoning off crores of rupees through fake investment schemes.
Rising Incidence of Cyber Fraud
On average, at least 30 people from cities like Visakhapatnam, Vijayawada, and Tirupati fall victim to online stock trading scams each month, collectively losing between Rs 15 crore and Rs 20 crore. Nearly 80% of victims are educated professionals. This trend underscores a troubling disconnect between preventive measures and investor behavior.
Recent Cases Highlight the Threat
In the first week of April this year, a 43-year-old man from Visakhapatnam lost over Rs 1.2 crore in a fake stock trading scheme. Just weeks later, in the third week of April, a 60-year-old man from the same city lost over Rs 1.45 crore in a similar investment fraud. Both victims were educated and comfortable with technology.
The fraudsters repeatedly assured them of high returns and guided them to transfer funds to multiple bank accounts. Trusting these claims, the victims transferred substantial amounts through numerous transactions. When they attempted to withdraw their profits and principal, they were asked to pay additional service charges to release funds. Realizing they had been cheated, the victims filed police complaints.
Root Causes and Modus Operandi
According to K Bhavani Prasad, Inspector of Cybercrimes Police Station in Visakhapatnam, “The greed for high returns in a short time is the biggest reason for the increasing investment-related financial frauds. Gullible investors fall prey to promises of quick profits without adequately assessing risks.”
Police explain that cyber criminals reach out to potential victims through social media platforms such as Telegram and WhatsApp, luring them to invest in stocks for hefty returns within a short period. To build trust, the fraudsters initially send small profits. Once the victim invests larger amounts, the scammers display fake profits via WhatsApp and Telegram but prevent withdrawals, demanding more money on various pretexts.
Investigation and Challenges
Police officials confirm that in many investment fraud cases, the accused remain unidentified. Investigations are underway to trace the cyber fraud network and recover the siphoned funds. The growing frequency of such scams highlights the need for enhanced digital literacy and stricter regulatory oversight.
Conclusion
As cyber fraud tactics evolve, citizens are urged to exercise caution, verify investment opportunities, and report suspicious activities to authorities. The police continue to advise against falling for schemes promising unrealistic returns, emphasizing that due diligence is the best defense against financial cybercrime.
