Stock Market Fraud via WhatsApp, Facebook, Telegram: Two Investors Lose Over Rs 3 Crore; How to Spot Scams and Protect Yourself

Two investors recently lost over Rs 3 crore in separate stock market frauds. These scams are increasing, causing people to lose their savings. How can you spot these scams and protect your money? Here’s what you need to know.

How an 88-Year-Old Lost Rs 1.97 Crore

An 88-year-old retired chartered accountant, Madhukant Patel, from Ahmedabad, lost Rs 1.97 crore in a stock trading scam. It began in February when he got a WhatsApp message from a person claiming to be Sunil Singhania, who said he worked with a stock market expert, Karanveer Dhillon.

Patel was invited to join a WhatsApp group called “Stock Vanguard 150,” where Singhania and Dhillon shared investment tips. They also conducted video conferences and shared advice. Seeing other group members posting about their profits, Patel started investing.

The fraudsters asked him to use their website, which looked real, showing stock updates and transactions. Patel started with small trades and made profits, which gave him confidence to invest Rs 1.97 crore. When Patel wanted to withdraw Rs 1.5 crore, Singhania told him he needed to pay 15% tax first. Patel paid Rs 18.7 lakh, but then was asked for another 1% of his portfolio value. Realizing it was a scam, Patel reported it to the cybercrime branch.

Another Investor Loses Rs 1.13 Crore

Jayendra Chauhan, a deputy mamlatdar from Ahmedabad, lost Rs 1.13 crore in another scam. He found an investment group on Facebook called Vanguard Club V5 and joined their app. He started trading based on tips from “Professor Ganesh Ranga” and made initial profits. Encouraged, he invested Rs 1.13 crore. But then he received a message that Ranga had been arrested and was asked to deposit 30% of his balance to help Ranga. Unable to access his money, Chauhan reported the scam to the police.

How to Spot Stock Market Scams

Scammers use various tactics to trick people, often through social media like Facebook, Instagram, WhatsApp, and Telegram. These “pig-butchering” scams lure victims with promises of high returns but end up stealing their money. Here are some tips to protect yourself:

1. Too Good to Be True: Be suspicious of promises of unrealistically high returns. Genuine stock market growth reflects fundamental business growth, typically yielding 12-15% over several years. Promises of doubling or tripling your money quickly are red flags.
2. Check for Licenses: Be wary of unsolicited contacts offering investment tips. Always ask for a valid SEBI or RBI license before taking any advice. Verify their credentials on SEBI’s website.
3. Verify Apps and Websites: Before investing through any app or website, check if it is legitimate. Look for SEBI or RBI licenses and avoid downloading apps not listed on official app stores.
4. Protect Personal Information: Never share your passwords, OTPs, or financial information with anyone. Use strong, unique passwords and enable two-factor authentication. Be cautious of common credentials shared in groups.

By staying vigilant and following these tips, you can better protect yourself from falling victim to stock market scams.