Type of cyber crime
Investment & trading scams
Fake trading apps, Telegram "tips" groups, IPO allotment scams and crypto platforms that show profits on screen and never let you withdraw.
These are now among the costliest frauds in India per victim. The pattern: an ad or a WhatsApp group, a "mentor", a slick app with a live-looking portfolio, small early withdrawals that build trust, then larger deposits, then a "tax" or "unlock fee" to withdraw, then silence. Many use real brokers' names and SEBI registration numbers that belong to someone else.
How it usually looks
- A WhatsApp group of 200 "members" (mostly scammers) posting daily profit screenshots.
- An app that mirrors the NSE ticker but settles nothing.
- A "guaranteed IPO allotment" via an "institutional quota".
Law that applies
| Provision | What it covers | Punishment |
|---|---|---|
| BNS 2023 s.318 | Cheating | Up to 7 years and fine |
| SEBI Act 1992 s.12 / s.24 | Unregistered investment advice; fraudulent and unfair trade practices | Up to 10 years and/or fine up to ₹25 crore |
| BUDS Act 2019 | Unregulated deposit schemes | Up to 7–10 years |
Sections are quoted for orientation; the police decide the final charge sheet. Verify text at indiacode.nic.in.
Where to report
- Call 1930 and file on cybercrime.gov.in with every UPI ID and account used.
- Verify any adviser or platform on SEBI's intermediary list and report fakes on SCORES.
- Report the group and the ad on the platform.
How to prevent it
- No SEBI-registered adviser guarantees returns or operates through anonymous Telegram groups.
- Trade only through apps downloaded from a broker's verified site, with a client code and contract notes.
- Early "profits" you can withdraw are the bait, not the proof.
Frequently asked questions
The app showed my profit as ₹40 lakh. Is any of it real?
No. The display is a web page controlled by the scammer. Only money you deposited was real, and it left the moment you sent it.