Cyber Fraud in Mumbai: Man Loses Rs 6.5 Lakh in Online Stock Trading Scam

A Mumbai-based self-employed man in his 30s lost Rs 6.5 lakh to an online scam after joining a WhatsApp group for stock trading tips.

The Borivali West police booked a fraudster for cheating the victim. The accused, posing as the administrator ("admin") of the WhatsApp group "Indian Stock Market Tips 1001," persuaded the victim to transfer money into her bank accounts under the false pretence of buying shares and initial public offerings (IPOs).

The victim reported to the police that between Jan. 29 and March 7, he transferred money to the accused's accounts for stock and IPO purchases but received nothing in return. The accused, who identified herself as Menakshi Kapoor, offered guidance and suggested trading via the PO Securities app.

The victim initially conducted an internet search for stock investment plans. He found a link to the WhatsApp group, which had 165 members. He followed Kapoor's advice and invested Rs 10,000 initially, followed by Rs 15,000. Kapoor then requested further investments, leading to transfers totaling Rs 95,000, Rs 17,000, Rs 75,000, and Rs 50,000 on Feb. 23.

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Later, Kapoor proposed an IPO investment, and the victim transferred Rs 300,000 via National Electronic Funds Transfer (NEFT). However, Kapoor claimed the transfer was unsuccessful and demanded Rs 132,000 to be sent to a different account.

Unable to withdraw the funds and distressed by the situation, the victim sought help from the police. The Borivali resident was defrauded of a total of Rs 651,000 in what authorities are calling an "online trading scam."

The victim filed a first information report (FIR) against the accused for cheating, forgery, and identity theft under the Indian Penal Code and the Information Technology Act. The police are investigating the case.

This incident highlights the growing concerns about cyber fraud in online stock trading. The cybercrime cell issued a public advisory earlier this year warning about this type of scam. Officials urge individuals to report online frauds directly to the cybercrime cell by calling 1930 or emailing cybercrime.gov.in.