Techie loses over Rs 33 lakh in share trading scam: How to avoid falling for such frauds

Investing in shares can be a great way to grow your wealth, but it also comes with risks, especially when dealing with unknown online platforms. Recently, a 40-year-old software engineer fell victim to a share trading scam and lost Rs 33.75 lakh. Keep reading to know how the scam unfolded and how to avoid falling for such scams.

It all started when the victim was added to a messaging group where members discussed stock trading and profits. The group admin, posing as a stockbroker, claimed to be associated with a well-known share broking company. Believing the admin’s advice, the techie decided to invest.

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The fraudster first shared a link to an online trading software, which the victim downloaded, reports TOI. Initially, he earned a small profit, which encouraged him to invest more. When he reached out to the group admin again, the scammer promised high returns through IPO investments and high-value shares.

The victim transferred Rs 33.75 lakh into six different bank accounts provided by the fraudster. However, when he tried to sell his shares, the scammer did not allow him to do so. 

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How to avoid falling for such scams

• Verify the trading platform: Always use trusted and registered stockbroking firms. Check for official registrations before investing.
• Avoid suspicious groups: Be cautious of unknown messaging groups that promote investments with unrealistic profits.
• Do not trust random brokers: Never trust someone claiming to be a stockbroker without verifying their credentials through official channels.
• Be wary of high returns: If an investment promises unusually high returns with little to no risk, it is likely a scam.
• Check for red flags: Avoid trading platforms that do not allow withdrawals or ask for money transfers to multiple bank accounts.
• Report suspicious activity: If you suspect fraud, report it immediately to the police and cybercrime authorities.