Five individuals from Visakhapatnam have reportedly lost over Rs 1.7 crore in an online investment scam orchestrated by cybercriminals posing as company representatives and financial advisors. The fraudsters lured victims with promises of high returns on investments and lucrative stock opportunities, exploiting their greed to trap them into losing lakhs and crores of rupees.
How the Scam Unfolded
A 50-year-old victim stated that he was added to a WhatsApp group named BOB CAPS in April of this year. The group sent regular updates on stock market trends and tips. Over time, some members began explaining the concept of the primary market and how it differs from the secondary market. They claimed that institutional account holders could trade company shares in bulk after market hours at discounted rates, using a fake website designed to mimic legitimate trading platforms. They further assured that institutional investors would receive discounted rates and generate high profits.
Convinced by these assurances, the victim registered on the fraudulent website and was subsequently added to a Telegram group called VIP BOB CAPS. Trusting their claims, he initially invested Rs 50,000 and soon received Rs 60,000 as profit. Encouraged by this quick return, he invested larger sums in phases. Between April and May, he transferred a cumulative total of Rs 1 crore through various modes of payment to multiple bank accounts linked to the fraudsters.
When the Trap Closed
When the victim attempted to withdraw the profits displayed on the trading site, the fraudsters stopped responding. All communication from the group ceased abruptly. Despite repeated messages and calls, he received no response. Realizing he had been cheated, the victim filed a complaint with the cybercrime police station in Visakhapatnam, seeking action against the fraudsters. Based on his complaint, the police registered a case under relevant sections of the Information Technology Act and various provisions of the Bharatiya Nyaya Sanhita.
Other Victims
Similarly, four other residents of Visakhapatnam lost approximately Rs 70 lakh after investing in the same online trading platform. They also lodged complaints with the cybercrime police station, urging action against the perpetrators.
Police Observations
The police noted that online investment scams account for about 40 percent of the total money lost by Visakhapatnam residents to cybercrimes each month. The majority of these financial cyber frauds involve different types of investment scams. A senior police officer attributed this trend to the greed and desire for easy money among netizens, which makes them fall for investment schemes promising quick returns.
The police have urged the public to exercise caution and verify the authenticity of any investment platform before committing funds. They advise against sharing personal or financial information with unknown entities and to report suspicious activities immediately.
