₹12-crore stock scam: Supreme Court AOR warns of rising fraud tactics; 5 tips to stay safe

The assurance of quick wealth continues to lure even the most educated citizens into elaborate financial traps. In a shocking case from Pune, a 75-year-old doctor suffered a financial loss of over ₹12 crore to cyber fraudsters who assured him of doubling his wealth in just 11 days, as detailed in a recent PTI report.

This is yet another incident that is a stark warning that, in today’s digital age, financial scams are evolving very fast.

The scam begins with a simple message to the victim, offering high returns through stock market investments. He was added to a WhatsApp group titled ‘VIP Stock 24’. A group where seemingly credible and trustworthy advice, along with success stories, which turned out fabricated, were shared.

Later, he was directed to a trading application that appeared to be a reputable international firm. Trusting the application, he transferred ₹12.31 crore in multiple transactions over time.

This was done on the basis of encouragement he received from the fake profits displayed on the application. When he hesitated, he was threatened with property seizure and subjected to emotional pressure and coercion. This continued until he eventually realised he had been duped.

Nishant Shokeen, Advocate on Record (AOR) at the Supreme Court, shares how fraud methods are becoming increasingly sophisticated.

He said, “These cases show that while fraud methods are becoming more advanced, the basic trick remains the same - promising quick and high returns. Even well-educated people can fall into such traps. There is a strong need for better enforcement, greater public awareness, and simple checks so that people can identify and avoid such financial scams in time."

1. As a matter of rule, avoid ‘too good to be true’ offers that come with unrealistic and unreasonable return claims. Such claims are often traps.
2. Before submitting your personal details on any particular application, verify its credentials, check its authenticity, visit its official website, and you can even raise your doubts to the cyber cell and the regulators if you feel that the application is carrying out fraud.
3. Don’t take any action based solely on social media tips, WhatsApp messages, texts, random emails, etc. Online communities are infested with scamsters, and data shared on these platforms can be easily manipulated to cheat innocent victims.
4. Your financial information, such as bank account numbers, ATM PINs, OTPs, CVVs, etc., is confidential data. Such data should never be shared with any third party. Furthermore, submit such data only on legitimate, trusted websites.
5. Take a pause, think, and seek professional guidance before making any large investments or transactions. This will keep you protected from financial complications, fund losses, and psychological stress in the future.

Such cases reinforce a simple yet powerful lesson in personal finance: caution is not optional; it is indispensable in financial management.

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