WhatsApp Trading Scam: How Mumbai Man Ended Up Losing Rs 90 Lakh; How To Avoid Financial Frauds | Personal Finance News

New Delhi: The number of fraudulent trading apps has increased dramatically lately. These apps entice users with the promise of quick money before vanishing with their funds. Victims of fraud are usually tricked into installing certain applications after being joined to WhatsApp groups. Initially, the users make small profits from these apps. Further cash is requested from the victims so that trade can continue. However, when the victims try to withdraw their earnings, they are compelled to pay upfront costs. By now, the crooks have disappeared, taking the money that was invested with them.

In a recent instance of an online investment scam, a Mumbai man lost Rs 90 lakh after joining a WhatsApp group that offered professional investment advice.

How Mumbai Man Ended Up Losing Rs 90 Lakh In WhatsApp Investment Scam? Modus Operandi 

According to a media report, the victim reportedly joined a WhatsApp group allegedly run by “foreign experts” who offered members investing advice and tactics that would yield substantial returns in a short amount of time. The frauds convinced the victim to use a smartphone app to open an “Institutional Trading Account”. Once the app was downloaded, the victim was told to start trading by depositing Rs 90 lakh into the bank account of a broker company.

At first, the victim’s account showed a virtual profit of Rs 15.69 crore. However, when he attempted to withdraw his money, the frauds barred him and demanded a 10% “Profit Sharing” fee of Rs 1.45 crore. The victim realized at this time that he had lost Rs 90 lakh as a result of falling for fraud.

Tips to avoid falling prey to WhatsApp investment scams

1. Check the source: Before engaging in any investment opportunity, always make sure it is legitimate.

2. Be skeptical of unsolicited advice: Refrain from taking unsolicited advice from unidentified sources on platforms such as WhatsApp.

3. Use reliable platforms: For investment purposes, engage with reputed and regulated financial apps and platforms.

4. Be wary of quick money: Avoid investment offerings that promise atypically high returns in a short period as they are often scams.

5. Don’t divulge personal information: Never share your personal and financial information with strangers on WhatsApp.