Fake Ad Featuring Nirmala Sitharaman Leads To Over Rs 2 Cr Loss In Trading Scam

Fake investment schemes promoted through social media are increasingly using the images and identities of public figures to gain the trust of potential investors. Such promotions can direct users to fraudulent trading platforms that display fake returns and encourage them to invest more money.

In a recent case, an elderly man from Pune allegedly lost Rs 2.3 crore after clicking on a Facebook advertisement featuring Union Finance Minister Nirmala Sitharaman and being directed to a fake stock trading platform, according to the police.

How Did The Fake Investment Ad Lure The Pune Man

The extent of the fraud became clear when the man tried to withdraw the money shown in his trading account. The platform displayed that his investment had grown to Rs 6.5 crore, but instead of allowing him to withdraw the amount, the fraudsters allegedly demanded another Rs 2.5 crore.

According to The Indian Express, citing the FIR, the man had first come across the Facebook advertisement on May 25. Sitharaman's photograph on the advertisement allegedly made the investment opportunity appear trustworthy. Two days later, he received a WhatsApp call from a person claiming to be associated with a share trading platform.

The caller sent him a link to a website, created an account for him and asked him to set a password and log in. The fraudsters allegedly then showed returns on his investments to make the platform appear genuine.

After making two or three initial investments, the caller allegedly transferred Rs 74,000 to the man's bank account and described it as his profit. This further increased his confidence in the platform, and he subsequently transferred larger amounts as instructed.

How Did The Fraudsters Trap Him Into Paying More

The caller later emailed details of several bank accounts and asked him to transfer money for stock market investments. The FIR records 14 transactions between July 7 and July 30, totalling Rs 2.3 crore. The money was transferred to mule accounts in Delhi, Hyderabad, Chennai, Pune and Vadodara.

When the man eventually sought to withdraw the amount displayed on the platform, another person allegedly contacted him while posing as a financial adviser. The person claimed that his equity had fallen and told him he would need to pay another Rs 2.5 crore to withdraw his money.

The demand raised the man's suspicions, and he realised that he had been cheated. Pune city cyber police have started an investigation based on his complaint.

Investors should be wary of stock trading scam on social media, particularly those using celebrity faces or promising quick, unusually high returns. Always check the platform and intermediary through official sources before putting in your money.