Cyber Fraudsters Spin 10 Investment Scams a Month

Hyderabad: With around 10 investment scam cases being reported every month within the Hyderabad Commissionerate limits alone, victims collectively lose amounts ranging from Rs 20 lakh to Rs 2 crore. Cybercrime officials say fraudsters are using sophisticated tactics such as falsified dashboards and social media advertisements to lure unsuspecting investors into online trading scams.

Pointing out the lack of research among victims, officials have advised the public to invest only through trusted and Sebi-registered platforms.

An officer explained, “The modus operandi begins with a call or an online advertisement claiming to offer expert trading advice or pitching the idea of doubling profits. Once the victim shows interest, they are guided to invest small amounts initially. To gain trust, scammers create a falsified trading dashboard — an almost perfect replica of legitimate trading websites.”

These dashboards even mirror live market updates from authentic platforms, convincing victims to invest more. However, when investors attempt to withdraw their money, the fraudsters demand ‘processing charges’ or ‘taxes’, squeezing out additional funds before vanishing.

Adding to this, D. Kavitha, Cybercrime DCP, Hyderabad Commissionerate, said that these rackets are often operated from countries like Taiwan, where organised call centres function full-fledgedly.

“These foreign-based operators control Indian associates who handle money transactions. While the callers and handlers are abroad, most of the bank accounts used belong to people from states like Rajasthan or Bihar. They work on a commission basis,” she said.

DCP Kavitha explained that one of the most telling red flags is the payment direction. “Instead of processing payments through the dashboard, fraudsters instruct victims to transfer money via random payment gateways or to multiple personal accounts. No genuine investment platform will ever ask you to pay outside its official system,” she warned.

Officials are urging citizens to verify a platform’s authenticity by visiting the Securities and Exchange Board of India (Sebi) website, which lists all registered and approved trading firms. “If a company’s name isn’t on the Sebi site, it’s fake — no matter how genuine it appears,” the officer emphasised.

Citizens are also advised to download applications only from the Google Play Store or Apple App Store, as both platforms conduct verification checks before approving apps. In contrast, social media platforms such as Facebook, Instagram, and X (Twitter) lack such mechanisms. “Their systems only filter obscene or trafficking-related content. They don’t verify authenticity, so any investment or trading ad there should be treated as suspicious,” added DCP Kavitha.

Five practices to avoid falling prey to fake investment scams:

Invest only on trusted platforms which is SEBI registered, research must

Do not trust investment and trading ads on Instagram or Facebook or Twitter or any social media platforms, no checking mechanism

Do not download trading applications through any links, big no no

Only download apps from Google Playstore or Apple Store

When asking to pay an account, think twice.