NEW DELHI: The Ministry of Home Affairs (MHA) has warned the public against a sharp rise in online investment scams operating through messaging platforms such as WhatsApp and Telegram, where cybercriminals lure unsuspecting investors with promises of quick, high and guaranteed returns.
According to officials, the MHA's Indian Cyber Crime Coordination Centre (I4C) has found that fraudsters are increasingly creating fake investment groups and posing as market experts or representatives of reputed financial firms. Victims are lured with so-called "VIP stock tips", fabricated trading success stories and promises of extraordinary profits before being persuaded to invest through fraudulent platforms.
Officials said I4C has found that scammers often persuade users to download trading applications through private links instead of official app stores, exposing them to financial fraud as well as the risk of data theft.
"Citizens are urged not to trust investment advice shared in unknown WhatsApp or Telegram groups and to verify the credentials of brokers and trading platforms before making any investment," an official said.
Officials stressed that claims of "guaranteed returns", exclusive stock recommendations or unusually high profits should be treated as major red flags. Investors have also been advised to download financial applications only from official app stores and avoid clicking on links received through unsolicited messages or social media platforms, they added.
The I4C has also found that a common tactic employed by fraudsters is to display fake profits on fraudulent trading platforms to build victims' confidence. Once investors attempt to withdraw their money, they are told to deposit additional amounts towards taxes, processing fees or account verification charges, officials said.
They added that genuine stockbrokers and financial institutions never ask customers to pay more money to release or withdraw their existing funds.
Further highlighting the modus operandi of such scams, officials said the I4C cited the case of a retired scientist from Mumbai who lost money after being added to an unknown WhatsApp group.
Fraudsters, posing as investment experts, persuaded him to download a fake stock trading application through a private link.
The fraudulent platform displayed fabricated profits, encouraging him to invest increasingly larger sums. However, when he attempted to withdraw his earnings, access to the account was blocked, leaving him unable to recover his money.
The I4C has urged citizens to remain vigilant and exercise due diligence before investing online. "Do not trust investment advice shared in unknown WhatsApp or Telegram groups. Never download trading apps through private links. Treat 'guaranteed returns' and VIP stock tips as red flags. Remember, genuine brokers never ask you to deposit more money to withdraw your funds," the advisory said.
The I4C has also appealed to victims and those who suspect fraudulent activity to report cyber fraud immediately to improve the chances of recovering lost funds and tracing the perpetrators. Complaints can be lodged through the National Cyber Crime Helpline by dialling 1930 or on the National Cyber Crime Reporting Portal.
Officials said public awareness remains one of the strongest safeguards against cyber-enabled financial crime and urged people to verify investment opportunities independently and share the advisory with family and friends to prevent others from falling victim to online scams.
