Kerala: Kozhikode man defrauded of Rs 4.8 crore in fake stock trading apps

By Aishwarya Nair | First Published Jul 9, 2024, 12:25 PM IST

The police are intensifying their investigation into a significant fraud case involving a Kozhikode entrepreneur who lost Rs 4.8 crore in a fake stock trading apps scam.

Kozhikode: An entrepreneur from Kozhikode was defrauded of Rs 4.8 crore in a scam involving a fake stock trading app. The cyber police have registered a case and initiated an investigation. The fraudsters initiated contact through WhatsApp, following which they instructed the victim to install several applications on his mobile phone. The victim subsequently transferred money to various accounts provided by the fraudsters through WhatsApp.

Police suspect that an international group is responsible for the fraud, which involved transferring the money to 24 accounts across different states. Authorities are gathering digital evidence, noting that the fraudsters even used the logos of legitimate stock trading companies to deceive victims.

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The individual from Kozhikode received information about potential stock market profits through social media. After clicking on an attached link, he was added to WhatsApp and Telegram groups where stock market tips were shared, leading to trust in the information provided. Subsequently, the person was instructed to install certain apps on their phone, which they did accordingly.

Initially, the fake apps showed profitable results, which boosted the individual's confidence. As a result, he was persuaded to deposit significant sums into various bank accounts for expanded trading opportunities. However, suspicions arose, prompting him to contact the cyber police's toll-free number. It was then that he discovered a substantial fraud had occurred.

The police are intensifying their investigation into the incident. They have noted a recent increase in fraud cases. This particular incident is one of the largest reported stock market scams, highlighting how individuals are willing to invest their money in the hopes of making a profit.

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