Bengaluru Engineer Loses Rs 6.4 Crore to Fake Stock Trading Scam Promising 700% Returns
In a shocking case of financial fraud, a Bengaluru engineer lost Rs 6.4 crore after falling for a high-return stock trading scam. The fraudsters promised returns as high as 700% and posed as representatives of an American company, International Equity Fund (IEF). Using social media and WhatsApp, they expertly manipulated the victim into investing substantial sums.
Bengaluru Man Duped of Rs 6.4 Crore in Fake Stock Market Investment Scheme
Vishwanath (name changed) was initially drawn to an ad on Facebook that offered 700% returns on stock investments. The ad claimed to be from International Equity Fund, a firm registered in India as a Foreign Portfolio Investor. As the victim contacted the scammers, he was convinced to invest larger sums of money, eventually losing his lifetime savings.
Deceptive Ad and WhatsApp Fraud: How Scammers Preyed on a Bengaluru Engineer
The scam’s perpetrators used WhatsApp groups to build a sense of trust and urgency, continually offering updates on Vishwanath’s investments and encouraging him to take out loans to increase his stake. The scammers promised massive returns, further encouraging him to invest. Eventually, when Vishwanath tried to withdraw his funds, the platform vanished, and his money was lost.
The International Equity Fund Scam: Fraudsters Posing as American Investment Advisors
The fraudsters meticulously created a fake identity for their supposed Delaware-based firm, producing counterfeit documents, testimonials, and performance reports. Their promises of 700% returns led the victim to believe the scheme was legitimate, but in the end, it was a well-executed fraud.
Police Launch Investigation into Bengaluru’s Rs 6.4 Crore Financial Fraud
Local authorities have begun an investigation into the scam, though recovering the funds may be challenging due to the complex digital nature of the crime. Experts warn that this scam may not be an isolated incident, with many other individuals potentially falling victim to similar schemes.
This Rs 6.4 crore scam serves as a critical reminder for investors to verify the legitimacy of online investment opportunities. Scams promising high returns are often too good to be true, and it’s crucial to exercise caution when dealing with unfamiliar platforms.
Saathee Global
