HIGHLIGHTS

An 18-year-old college student recently fell victim to a stock market scam.

While browsing Instagram, he encountered an advertisement promoting stock market investment.

Upon clicking the ad, he was automatically added to a WhatsApp group.

A recent incident has shed light on the alarming reality of stock market scams, particularly affecting young individuals. An 18-year-old college student found himself ensnared in a web of deceit, resulting in substantial financial losses. The following narrative outlines how the scam was carried out and provides valuable tips on how to steer clear of such fraudulent schemes.

The young man’s father had transferred around Rs 18 lakh (approximately $22,000) to his bank account to support him with college entrance fees and other related educational expenses. While casually scrolling through Instagram, he stumbled upon an advertisement that promoted enticing stock market investment opportunities. Intrigued, he clicked on the ad, unwittingly finding himself added to a WhatsApp group filled with individuals posing as investment experts.

In this group, the scammers employed various manipulative tactics to persuade him to invest his money. The unsuspecting student eventually transferred a total of Rs 16.08 lakh after being convinced by the elaborate claims made by the fraudsters. Using fake screenshots that purportedly showcased rising stock prices, the scammers instilled a false sense of security and trust in him.

Between January 10 and January 28, he invested considerable amounts of money. However, when he attempted to withdraw his funds—expecting to also receive promised profits—the scammers turned hostile, refusing to release any money and instead pressing him to invest even more. Feeling cornered and desperate, the student finally confided in his family about the scam.

This unfortunate story serves as a cautionary tale for many. In light of incidents like this, it’s crucial to remain vigilant and informed about the methods employed by fraudsters. Here are some essential tips to avoid falling victim to similar scams:

How to Avoid Falling for Such Scams

• Exercise Caution with Investment Ads: Be wary of investment advertisements that pop up on social media. Scammers frequently use these platforms to attract potential victims. Always conduct thorough research and verify the legitimacy of any advertisement before clicking on it.
• Steer Clear of Unknown WhatsApp Investment Groups: Be skeptical of investment opportunities that are presented through unsolicited online groups. Genuine investment opportunities typically do not operate through random social media channels.
• Verify Investment Platforms: Always use established and registered platforms for stock market investments. Research these platforms thoroughly and read reviews before making any commitments.
• Avoid Impulsive Investment Decisions: If an investment opportunity appears too good to be true, it probably is. Take your time to analyze the situation carefully before making any financial decisions.
• Consult Financial Experts: When in doubt, consult professionals who specialize in finance and investments. Their expertise can provide valuable insights and help you avoid losing your hard-earned money.

Further examples of the growing menace of scams highlight the importance of awareness and preventive measures. For example, another report discussed how a family from Noida lost over Rs 1 crore due to digital fraud—a clear indication that such scams are on the rise and can have devastating effects.

In conclusion, staying informed and cautious is essential in protecting yourself against scams, especially as digital platforms continue to grow. Share this knowledge with friends and family to build a community that is well-prepared to recognize and combat fraudulent activities.

Also read: Woman loses Rs 1.16 lakh after fake crime branch call: Here’s how the scam unfolded