Mumbai businessman loses Rs 2.3cr after falling for fake stock trading ad: How to be safe

Imagine seeing a tempting stock trading ad on social media that promises high returns, and thinking – Why not give it a shot? That’s exactly what happened to a 61-year-old retired businessman from Bandra, Mumbai. What started as a small step into investing turned into a nightmare. He ended up losing Rs 2.32 crore. Keep reading to know what exactly happened and how you can avoid falling for such scams.

The scam began in November 2024 when the victim, a former TCS employee, came across a stock trading app on a social media platform. The ad looked legitimate and claimed to be linked to a popular financial services brand, reports TOI.

Once he clicked on it, he was added to multiple WhatsApp groups where the members shared regular stock market tips. Encouraged by this, the businessman started investing money regularly.

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Over time, he transferred a total of Rs 2.32 crore to different bank accounts. The fraudsters also made him install a mobile app. The app showed that he had made a profit of Rs 3.17 crore. However, he was unable to withdraw the money.

How to avoid falling for such scams

• Verify before investing: Always check if the trading platform or app is legitimate.
• Don’t trust WhatsApp groups: Scammers use fake group chats to build trust. Don’t rely on investment advice from unknown people.
• Be wary of promises of high returns: If it sounds too good to be true, it usually is.
• Avoid clicking on unknown ads: Social media ads can be fake and lead you to traps.
• Consult experts you trust: Talk to a registered financial advisor before investing large sums of money.

Also read: Retired govt official loses Rs 22 lakh after clicking on an ad: Here’s what happened