Be Careful with Online Trading, Investment Scams: Hyderabad Police

These fraudsters often use fake websites, trading dashboards, or apps to show false profits and convince victims to invest more money. Citizens are urged to avoid investing through unverified platforms, not to trust online profit promises.

Modus Operandi on online trading frauds is as follows:

Initial Contact via Social Media:

• The fraud begins with an unsolicited message on platforms like Facebook, telegram or WhatsApp, often sent by someone posing as an investment advisor or trading agent

• The agent builds rapport with the victim and introduces a so-called online trading opportunity, promising high and quick returns.

Small Initial Investment:

• The victim is asked to make a small initial investment to begin trading.

• The agent provides hand-holding support via WhatsApp, giving the illusion of legitimacy and real-time trading assistance.

Fake Profits and Wallet Balance Display:

• After the initial investment, the agent shows fake profits on a manipulated trading platform.

• The victim is made to believe these returns are real and withdrawable.

Repeated Requests for Additional Payments:

• When the victim tries to withdraw funds, he is told to pay various "processing fees", such as: Tax payments, Currency conversion charges, Withdrawal fees, Compliance charges.

• Each time a payment is made, a new reason is invented to demand more money.

Threats and Coercion:

• If the victim hesitates or questions the process, scammers use fear tactics like: Threatening legal action claiming the wallet or funds will be frozen or lost

Prolonged Fraud with Rising Demands:

• Over time, the victim pays increasing amounts

• Despite the large credited wallet balance, no withdrawal is ever allowed.

Realization and Reporting:

• Eventually, the victim realizes the operation is a scam and reports the incident via 1930 – National Cybercrime Helpline or cybercrime.gov.in