Stock Market ‘Training’ Scam Tricks Bangalore Man Out of ₹6.41 Crore

In a stark reminder of the growing sophistication of online scams, a senior citizen from Bangalore became the victim of an elaborate fraud, losing ₹6.41 crore to individuals posing as investment advisors.

The scammers operated through WhatsApp, offering stock market training sessions and promising astronomical returns on investments.

How the Scam Unfolded

The ordeal began on July 19, when the victim was contacted on WhatsApp by an individual identifying herself as Meera Patel. Claiming to be part of a prominent investment group, Patel introduced the victim to other handlers in the scheme - Hardik Shah and Ashish Goyal. These individuals claimed to represent the "International Equity Fund," which they described as a Delaware-based investment advisory company registered in India as a Foreign Portfolio Investor.

The scammers offered the victim online training sessions on stock market investments, luring him with promises of returns as high as 700%. Intrigued by the opportunity, the victim agreed to join their program, hoping to gain insights into the stock market.

A False Sense of Legitimacy

The fraudsters' tactics were calculated and professional. Over 15 days of online sessions, the victim and others in the group were led through seemingly credible training on stock market strategies, IPO allotments, and block trading. The sessions appeared well-organized, convincing the victim that the opportunity was legitimate.

The scammers further solidified their credibility by sharing fabricated documents, including a fake SEBI registration certificate and details of a Mumbai office. They also set up an online portal to simulate trading activities, complete with fake profit statements, adding another layer of deception.

Escalating Financial Demands

As part of the scheme, the victim was pressured to make large investments. Initially, he was told the money was for preferential stock allotments and IPO subscriptions. Later, additional security deposits were demanded to "unlock" the promised profits and gain access to high-frequency trading benefits.

Believing in the promise of hefty returns, the victim began transferring money. When his initial investments didn't yield results, desperation drove him to borrow from family and friends, amassing loans worth ₹3.2 crore. Despite transferring a total of ₹6.41 crore, the victim found his account on the fraudulent platform locked, with no way to access his funds.

Repeated attempts to contact the scammers, including Meera Patel, proved futile as they disappeared without a trace.

Investigation and Scam Tactics

Police investigations revealed the sophisticated methods used by the scammers. They operated through multiple phone numbers, bank accounts, and an online portal that simulated trading profits. The fabricated SEBI certificate and the purported office address in Mumbai are now under scrutiny, adding to the evidence of the elaborate hoax.