Online trading scams are rapidly increasing in India, with people being defrauded through fake apps, websites, and WhatsApp groups by promising profits. Trust is gained by showing celebrity photos and fake returns.
Online Trading: In this era of Digital India, where investment and trading are just a few clicks away, cybercriminals have turned online trading into a new field for fraud. In this rapidly growing scam, thousands of Indians lose their life savings every month. What's shocking is that even though the methods of these scams are different each time, their aim is the same—to steal your money through greed.
Online Trading or Online Fraud?
In the last few years, the trend of digital trading has increased rapidly in India. People are now investing in stocks, mutual funds, and cryptocurrencies from the comfort of their homes. But taking advantage of this opportunity, cybercriminals have started looting people through fake trading apps and websites by luring them with the promise of huge profits.
How do fraudsters create the web of online trading?
1. Fake Apps and Websites
These people create exact copies of real trading apps like Zerodha, Groww, or Upstox. When you log in to these platforms, you are shown a fake portfolio that is growing rapidly. The user is made to believe that they have made a profit, while in reality, their money is going somewhere else.
2. Use of WhatsApp and Telegram Groups
Scammers create fake trading communities and add people to them. There, fake users share fake success stories. You will feel like everyone is making a profit, while in reality, they are all members of the fraudsters' team.
3. Misuse of Celebrities' Photos
By using photos of well-known figures like Sachin Tendulkar, Ratan Tata, and Akshay Kumar, these fake platforms are shown to be legitimate. Users think that when such big names are involved, the platform must be trustworthy.
4. Promise of 100% Profit
These scammers claim returns of 5 to 10% per day. No real trading company gives such a guarantee, but people believe it due to greed.
Why do people fall into the trap again and again?
- Lack of Information: Many people lack financial awareness, especially in rural areas and senior citizens.
- Desire to Earn Quick Money: After the Corona pandemic, people's economic condition has weakened, which has increased the desire to earn quick profits.
- Group Influence: When other members in the group are showing profits, a common person is also motivated to invest.
- Not Verifying Online: People do not check ratings, reviews, or developer details while downloading the app.
How to avoid this online fraud?
1. Use only SEBI-Registered Platforms
Companies like Zerodha, Groww, and Upstox are recognized by SEBI. Before investing in any new platform, check its validity.
2. Be careful before downloading the app
Only download apps from the Google Play Store or App Store and read the ratings, reviews, and developer details carefully.
3. Stay away from schemes with 100% guarantees
There are both profits and risks in investment. A platform that guarantees returns without risk may be a scam.
4. Do not share any personal information
Sharing PAN, Aadhaar, or bank details on unknown links or apps can be a very big risk.
5. File a complaint immediately
If you have been a victim of fraud, immediately file a complaint on cybercrime.gov.in or contact the nearest cyber police station.
The government and platforms will also have to take steps
The government should make strict laws against such fake trading platforms and run awareness campaigns from time to time. Along with this, real trading apps also need to give in-app warnings and education to make their users aware.
