Hyderabad man loses Rs 50 lakh after joining WhatsApp group to learn stock market investment

In a recent case of an online scam, an elderly man from Hyderabad fell victim to a WhatsApp-based stock market scam, losing Rs 50 lakh after being lured by promises of high returns.

In Short

• The victim was duped by a man he got connected on WhatsApp
• The man introduced himself as a reputed financial advisor
• He advised the victim to invest significant money to earn big profits

India is witnessing a sharp rise in cases of online scams. In the past few months, thousands of citizens have reportedly fallen prey to the deceptive tactics of these cyber fraudsters. Among the most vulnerable are the elderly, who may not be well-versed in the digital space. In one such recent case, a 63-year-old man from Hyderabad fell victim to a fraudulent stock market scheme organised via a WhatsApp group. The scheme reportedly promised high returns on investments but ended up costing him Rs 50 lakh.

The scam began when the victim joined a WhatsApp group titled Stock Discussion Group. The group administrator, Kunal Singh, introduced himself as a reputed financial advisor, claiming that his stock trading guidance had brought exceptional returns for previous clients, The Hindu reports. He further described his "2022 stock classes" as highly successful, boasting returns as high as 500 per cent on specific stocks. Impressed by the conversation and the promise of high returns, the victim decided to enroll in the proposed online classes, hoping to learn strategies for stock trading and investment.

The sessions were reportedly conducted through links shared within the WhatsApp group, leading participants to join private online classes where the scammer allegedly offered guidance on market trends and specific stocks. During these sessions, the scammers directed the victim and others to invest through a platform named Skyrim Capital, which they introduced as a legitimate financial service provider.

Initially, the victim was encouraged to invest small amounts, which reportedly showed promising profits, increasing his confidence in the scheme. However, as time went on, the scammer convinced him to make larger investments for more significant profits, ultimately leading the victim to invest a total of Rs 50 lakh. He reportedly transferred this money across multiple beneficiary names and accounts, likely to evade suspicion and tracking.

But when the victim tried to withdraw his profits, he realised it was a scam, as the scammers denied the withdrawal. According to the police, scams like these are increasingly common, especially through messaging platforms where fraudsters can quickly reach and deceive a large number of people. The public is advised to report any suspicious online financial activities through the national cyber crime helpline at 1930 or the portal cybercrime.gov.in.

As online scams become more prevalent, it is very important to stay vigilant, especially for elderly individuals who may be unfamiliar with online threats. Ask elderly family members to avoid joining investment or financial advice groups on social media or messaging platforms unless the group is from a verified source. Keep in mind that legitimate financial advisors and institutions typically do not operate exclusively through platforms like WhatsApp.

Additionally, promises of guaranteed or high returns are often a red flag. Investments in stock markets are inherently risky, and no genuine financial expert would claim a guaranteed percentage return, especially one as high as 500 per cent. Before making any significant investment, especially with new platforms or advisors, consult with a certified financial advisor or a trusted family member.