Stock market investments can be a great way to grow wealth, but they come with risks, especially when dealing with unknown online platforms. Recently, a 40-year-old software engineer became a victim of a stock trading scam, losing a staggering 33.75 lakh rupees. Here’s how the scam unfolded and how you can protect yourself.
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How the Scam Happened
The victim was added to a messaging group where members actively discussed stock trading and high profits. The group admin, claiming to be a stockbroker associated with a reputed brokerage firm, gained the engineer’s trust. Encouraged by initial small profits, the victim decided to invest more.
According to reports, the scammer shared a link to an online trading software, which the victim downloaded. The engineer was then lured into investing in IPOs and high-value stocks, promising lucrative returns. Over time, he transferred 33.75 lakh rupees into six different bank accounts provided by the fraudster. However, when he attempted to sell his shares, the scammer blocked access and refused withdrawals.
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How to Avoid Such Scams
- Verify Trading Platforms: Always use registered and well-known stockbroking firms. Check their official registration before investing.
- Avoid Suspicious Groups: Be cautious of unknown messaging groups promoting unrealistic investment profits.
- Don’t Trust Random Brokers: Never rely on someone claiming to be a broker without verifying their credentials through official sources.
- Be Wary of High Returns: If an investment promises guaranteed high returns with little or no risk, it is likely a scam.
- Watch for Red Flags: Stay away from platforms that restrict withdrawals or request transfers to multiple accounts.
- Report Fraudulent Activity: If you suspect fraud, report it immediately to the police and cybercrime authorities.
Staying vigilant and conducting thorough research can help you safeguard your investments from online fraudsters.
