Shares The addiction of earning big money in a short time is causing huge losses to many investors. Cyber frauds are duping investors of lakhs of rupees by luring them with the promise of earning big money. Let us tell you that cyber frauds are making innocent investors their victims these days by creating fake demat accounts. Many investors in the country have suffered losses of lakhs through fake demat apps so far. Let us know how this fraud is happening and how we can avoid it.
This is how fraudsters are trapping investors
Since the Corona epidemic, there is a huge craze for stocks among small investors. Due to this, the number of demat accounts has crossed 16 crores. New demat accounts are being opened. Taking advantage of this blind race, cyber frauds are targeting new investors. They are contacting investors through calls, WhatsApp and Telegram. By talking, they show naive investors the dream of becoming a millionaire overnight.
Then they send a link via WhatsApp or Telegram and ask to download a fake demat account app on the mobile. When the investor downloads the fake demat account app from the link sent, he is asked to start investing by putting an amount in it. Initially, the investors are also shown the buying-selling and profits in this fake demat app. But when the investor puts in a large amount or keeps investing continuously, one day that account gets closed and his entire investment is lost.
Use of market data
Cyber frauds are using market data in that app to make the fake demat account appear genuine. That is, when the market opens, the shares which are rising or falling are visible in it. Due to this, new investors believe that this trading platform is genuine but in reality it is not so. Huge returns are shown by showing fake accounts and real time market data like demat. The investor gets lured and keeps investing. When the amount becomes good, he is stopped from exiting. Investors feel that they have shares in their account which have given huge returns, but in reality it is not so. Later, cyber frauds also stop taking calls. In this way, lakhs of rupees of investors are lost.
How to avoid this type of fraud
- Be careful with WhatsApp groups: Fraudsters use WhatsApp groups to mislead you into thinking that they are experts in the equity market. Their modus operandi is simple: they create a WhatsApp group with several of their associates and make you a part of it. There may be some naïve investors who have been duped into joining the group. Avoid such groups.
- ‘Don’t invest right now, right now’: If someone calls and says invest now or else you will miss this opportunity, be careful. There is always an opportunity in investing.
- Please check the authenticity of the app first: Before downloading an app, check its authenticity. By doing this you can avoid downloading a fake app. Do read the app review. Go to the news segment and search about that app.
- High Returns Not Guaranteed: If someone says that they will double your money in a month, then be cautious. No one can do this. So never fall prey to the greed of high returns.
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