Scammers use WhatsApp contact and fake FYERS-DMA platform; initial withdrawals used to build trust before blocking funds
Hyderabad – A 27-year-old resident of Kanchanbagh has been duped of Rs.14.34 lakh after scammers contacted him on WhatsApp and lured him into a fake trading platform named FYERS-DMA, falsely projected as a service of the genuine Fyers Securities.
How the Elaborate Scam Unfolded
The fraudsters created a sophisticated trap that appeared completely legitimate at first glance. The fake platform was designed to closely mimic genuine trading interfaces, making it difficult for victims to detect the fraud.
Building Trust Through Initial Withdrawals
The platform initially allowed two profit withdrawals totaling Rs.3,60,000 to gain the victim’s trust. This classic scam tactic convinces victims that the platform is genuine and profitable, encouraging them to invest larger amounts.
Believing the platform to be real after receiving these withdrawals, the victim invested Rs.17,94,000 into multiple bank accounts provided by the fraudsters.
The Trap Springs Shut
When the victim later attempted to withdraw his accumulated funds, the platform blocked all withdrawal requests. At this point, the scammers revealed their true intentions.
False Loan Claim and Additional Demands
The fraudsters then displayed fake profits on the platform and falsely claimed the victim had taken a Rs.15,00,000 “loan”, demanding repayment before releasing his money. This is a common extortion tactic used to extract even more money from victims who are already desperate to recover their investments.
Discovery of the Fraud
After verifying with the genuine Fyers Securities, the victim learned that the entire setup was fake and had no connection to the legitimate brokerage firm. His total loss amounted to Rs.14,34,000.
The victim subsequently filed a complaint with the Cyber Crime Police Station.
Growing Threat of Fake Trading Platforms
Hyderabad Cyber Crime Police have issued a public advisory warning citizens about the proliferation of fake trading apps and investment platforms.
Common Tactics Used by Fraudsters:
Impersonation of SEBI-Registered Brokers: Fraudsters create fake apps and WhatsApp groups that closely mimic legitimate, SEBI-registered brokerage firms.
Small Initial Withdrawals: They allow small initial profit withdrawals to win trust and convince victims the platform is genuine.
Personal Bank Accounts: Victims are asked to transfer money to personal or unknown bank accounts—genuine brokers never do this as they use only company accounts with proper banking channels.
False Profit Displays: Fake platforms show inflated, false profits to encourage larger investments.
Fabricated Loan Claims: Scammers demand extra payments for fabricated “loans” or “processing fees” to release funds.
How to Protect Yourself from Trading App Scams
Verify Trading Platforms: Always verify using:
- Official company websites
- SEBI registration numbers (check on SEBI’s official website)
- Verified customer care numbers from official sources only
Red Flags to Watch For:
- Unsolicited investment offers via WhatsApp, Telegram, or social media
- Requests to transfer money to personal bank accounts
- Promises of guaranteed high returns with no risk
- Platforms that require upfront fees for withdrawals
- Unknown links sent via messaging apps
Safety Measures:
Never click on unknown links or download apps from unofficial sources
Avoid responding to unsolicited investment or trading offers
Never share:
- Bank account details
- Credit/debit card information
- OTPs (One-Time Passwords)
- Internet banking credentials
Verify before investing: Check if the broker is registered with SEBI at www.sebi.gov.in
Use only official apps downloaded from Google Play Store or Apple App Store with verified developer credentials
Be skeptical of investment opportunities promising unrealistic returns
Warning Signs of Fake Platforms
Citizens should be immediately suspicious if:
- Contact is initiated through WhatsApp or Telegram rather than official channels
- The platform requests funds be sent to individual bank accounts
- There are spelling errors or poor design in the app
- The platform blocks withdrawals or creates obstacles
- Additional fees are demanded for “tax,” “processing,” or “loan repayment”
- The company has no physical office address or verifiable contact information
How to Report Trading App Fraud
If you suspect or have fallen victim to trading app fraud:
Call: 1930 (National Cybercrime Helpline) Visit: www.cybercrime.gov.in Contact: Local Cyber Crime Police Station
Protect Your Investments
The incident highlights the sophisticated nature of modern investment scams. Legitimate brokers:
- Are registered with SEBI (Securities and Exchange Board of India)
- Use only company bank accounts, never personal accounts
- Provide clear documentation and transparent processes
- Have verified contact information and physical offices
- Never guarantee returns or pressure investors
- Don’t contact potential clients through WhatsApp or social media
With the rise of digital trading platforms, citizens must exercise extreme caution and verify the authenticity of any investment opportunity before committing funds. The promise of high returns and the display of initial profits are classic red flags that should trigger immediate verification with official sources.
