IAS officer loses Rs 1cr to fake investment expert: How it happened and tips to stay safe

We all dream of finding a trustworthy expert who can help grow our savings, but sometimes, even the most cautious individuals can fall prey to scams. In a shocking incident, an IAS officer cheated out of over Rs 1 crore by a person who claimed to be an expert in financial market investments. Here’s how it all unfolded and what you can learn from it to protect yourself.

The incident, which was reported at Tilak Marg police station, began last year when the IAS officer was introduced to a man through a relative in Gurgaon. He presented himself as a professional financial expert specialising in currency trading and promised high returns. “During the introduction, the person mentioned that he was a professional expert in financial market investments and that he generated high profits with expertise in currency trading,” the officer shared in her complaint.

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The man went a step further when the complainant met him in Delhi. He showed her on his laptop how he had generated impressive returns for other investors and friends. He claimed to manage investments worth Rs 60-70 crore and said that he needed to increase his balance to Rs 100 crore in order to obtain a business licence. “He strongly suggested that if I could lend him my funds and savings, it would help him, and he would also offer me substantial returns,” the officer said.

Despite expressing concerns about the safety of her funds, the IAS officer was reassured by the man, who promised that her money would be safe. Trusting him, she transferred Rs 1.9 crore between September and December 2023. The man assured her that he had already made profits of Rs 75 lakh from her investment and that her funds would double by August 8.

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But when the officer needed part of her funds in January due to a medical emergency, the scammer kept making false promises and delaying payments. In March 2024, he returned Rs 25 lakh, but the remaining amount was never returned, leading her to realise she had been duped.

Tips to stay safe from investment scams

• Be cautious of anyone promising unrealistically high returns, especially in risky areas like currency trading.
• Always verify the credentials of any financial expert.
• Never transfer large sums of money without thoroughly researching the investment and understanding the risks.
• Avoid being pressured to make quick decisions.