Summary of this article
Fake trading apps scam investors with promised high returns.
Fraudsters show fake profits, then block withdrawals with excuses.
Multi-state cyber racket arrested, Rs 99 crore allegedly cheated.
A growing number of fake trading app scams are being reported, with scammers luring investors with false profit promises. These platforms are designed to appear legitimate and attract individuals interested in online trading and quick profits.
Such scams involve convincing users to download apps or register on websites through calls or messages, showing fake profits after initial investment to build trust, then blocking or delaying withdrawals through various excuses, and in many cases, operators later disappear after collecting money.
In one such case, around Rs 99 crore was allegedly defrauded through a fake trading platform, police said.
How the Fake Trading Racket Operated
The accused, a software engineer, allegedly quit his job at a multinational company where he was earning around Rs 30 lakh per annum to run the fraudulent trading racket. According to the report, he, along with his associates, operated a fake mobile application and website designed to resemble legitimate trading platforms and lure investors with promises of high returns.
Police said Ravi Rathore was arrested in Bengaluru along with his associates Sudama and Vikash Rathod in a coordinated multi-state operation. The case came to light after a complainant reported being cheated after investing Rs 10,000 in the platform.
Investigators said Rathore developed and maintained the fake application and website, Sudama handled financing and operations, while Vikash Rathod was responsible for calling and persuading victims. People were approached through calls and messages and convinced to join and invest. The app displayed fake trading profits to build trust and push more investment.
Large-Scale Trading Scam Linked to Fake Platform
According to PTI, around 636 victim accounts were identified during the probe, with transactions worth nearly Rs 99.77 crore linked to the platform.
When users attempted to withdraw their money, they were allegedly asked to pay additional charges under various pretexts such as taxes, processing fees and account activation fees. These repeated demands were used to delay or block withdrawals, making it difficult for victims to recover their funds.
Deputy Commissioner of Police (Central) Rohit Rajveer Singh said the money that was cheated was distributed among the accused based on their roles in the operation. Rathore allegedly used part of the proceeds to purchase flats and other properties in Indore, besides luxury vehicles, including an SUV recovered during the raids.
The probe further revealed that the backend systems were operated from Bengaluru, while calling operations and money trail were linked to Madhya Pradesh, indicating a wider interstate network. Electronic devices, SIM cards and other digital records were seized during the raids.
Police said the group is suspected of running an organised cyber fraud syndicate targeting individuals interested in online trading investments, and further investigation is underway. Users should verify trading platforms before investing, avoid schemes promising guaranteed returns, and be cautious of unsolicited investment offers received through calls or messages.
