First they share tips, then dupe people to steal their money: Online share market scam explained

A man from Udupi recently fell prey to an online investment scam. According to the victim, he was added by unknown individuals to a WhatsApp group named “C22 Investment Alliance Trading.” According to a report by Deccan Herald, the man stayed in the group, lured in by the promise to tips on stock markets and trading that would help him make more money. He believed the group was legitimate and after a while initiated conversations in the group. A few days later he lost Rs 14 lakh!
What happened? Once the scammers had realised that the Udupi man was gullible enough, he was duped into installing an app called “Causeway” and then transferred his funds to several bank accounts for more profitable stock trading. But when he tried to withdraw his so-called “profits” he was denied access as the scammers locked him out of the app, leaving him with no way to retrieve his money.
This is not just one story. The Hindu recently wrote a similar story. In Hyderabad a 63-year-old man suffered a similar fate, losing a staggering Rs 50 lakh. The victim was added to a WhatsApp group named “Stock Discussion Group,” where the group admin introduced himself as a financial advisor. The admin promised tips and boasted to improve returns by 500 per cent. Impressed, and believing it all to be true, the old man began investing in a platform called “Skyrim Capital.” Initially, the victim saw good profits and was pleased with the outcome. However, when he attempted to withdraw his profits, he discovered that his funds had vanished, and his login credentials were deactivated, making him unable to access his money.
Well, the story seems to be quite straightforward: In both these cases, the victims were first added to a WhatsApp group by unknown individuals. They were promised high returns and their greed was awakened. They started putting their money in an app that scammers had created specifically to dupe people. And then by the time they realised something was wrong, they were simply locked out of the app.
With social media platforms like WhatsApp and Telegram, scammers are finding it easier than ever to connect with individuals and lure them into financial traps.
While there is no specific age group being targeted, we frequently see elderly — who may be less familiar with technology — fall victim to these scams. Even some India Today Tech employees members were added to these groups but we remained vigilant, and we blocked and reported these groups. You can read more about it here: WhatsApp new ground for investment scams, users losing lakhs of rupees on fake schemes
But it seems like, despite numerous warnings about online scams from cybercrime branches, police, and media, scammers are still managing to exploit people’s vulnerabilities as phone and computer users ignore red flags and fall for these deceptive techniques.
Protecting yourself from these scams is simple — avoid trusting unknown individuals online. As time passes we are seeing that scammers are webbing these scams more sophisticatedly. So to protect yourself from falling into such a trap, it is crucial that people stay careful online.
Here are few safety tips to consider: