A 70-year-old man from New Thippasandra, north Bengaluru, recently fell victim to an online trading scam, losing Rs 1.4 crore. The victim, whose identity is kept hidden and replaced by Richard (pseudonym), wrote about the experience in a complaint lodged on June 22, 2021.
How The Fraud Unfolded
Richard was invited to join a WhatsApp group called ‘Robert Marinez Center For Institutional Strategists.’ Curiosity got the better of him, and he joined the said group. This group then inquired about whether he wanted to be added to another WhatsApp group called ‘ELTAS-FUD’ for online classes on stocks and cryptocurrency.
That the group had an administrator by the name of Akshay Vijay Nayakawadi and a guide by the name ‘Of Dia’ and a lecturer in online trading by the name ‘Of Robert Martinez.’ The group posted suggestions and coaching in investments for the stock market and cryptocurrency over a few days. It had claimed that there were more than 100 members, including traders and investors, a few claimed stock analysts, and some coordinators. To make it appear genuine, the fraudsters uploaded fake screenshots with highly high profits credited to the bank accounts.
The Fraudulent Portal
The group eventually asked all the members to register an account in a portal called ‘equip-trade.com,’ which falsely claimed to be registered with the Securities and Exchange Board of India (SEBI). Richard, too, complied and, in the initial stages, transferred Rs 1.5 lakh into an account provided by the fraudsters. Citing the figures for fake profit on the portal, he remained undeterred and invested a more significant amount. Before long, Richard had transferred Rs 1.4 crore to over ten different bank accounts provided by the scammers. He was promised attractive returns after one month of his investments. However, when he tried to withdraw money, the fraudsters asked him to pay extra tax, processing fees, and other charges.
Police Investigation
When Richard finally realized he had been conned, he complained with the police. A police official said, “We’re coordinating with bank officials to freeze the fraudsters’ bank accounts if there is any balance amount.”
Conclusion
The above incident is an indicative one highlighting the growing trend of online trading frauds and, therefore, the reason why one should be more cautious while conducting their online investment activities. Authorities are working hard to track the fraudsters down and reaping whatever remaining funds they can recover.
