Hyderabad Police Sounds Alert Over Alarming Rise of Online Trading, Investment Scams

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.

The modus operandi of 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

Public Advisory on Online Trading Frauds:

Verify Before Investing

Always verify the authenticity of trading platforms, investment advisors, and agents before making any financial commitments.

Check for official registration and licenses with SEBI (Securities and Exchange Board of India) and credible reviews. Avoid platforms contacted through unsolicited messages on social media.

Be Skeptical of High Returns

Be cautious of promises of quick, high, or guaranteed returns. Legitimate investments always carry risk.

Do Not Share Personal or Banking Details

Never share sensitive information such as bank account numbers, OTPs, passwords, or UPI PINs with unknown individuals.

Avoid Paying “Processing Fees” or Extra Charges

Fraudsters often invent reasons like taxes, withdrawal charges, or compliance fees to extract more money. Genuine trading platforms never ask for money

Watch for Fake Platforms and Wallets

Avoid platforms that show unusually high profits or manipulate wallet balances. If withdrawals are delayed or blocked repeatedly, treat it as a red flag.

Do Not Succumb to Threats or Coercion

Scammers may use fear tactics like freezing funds or legal threats. Always remain calm and avoid making hasty payments under pressure.

Report Suspicious Activity Immediately

Report suspected frauds to the National Cybercrime Helpline (1930) or online at cybercrime.gov.in