Stock Market Scams rise in Bengaluru: Victims Loses nearly Rs.200 Crore in 4 Months, Says Report
A new report shows that in the last four months, fraudulent investment schemes in Bengaluru have led to a loss of Rs.197 crore. The city’s cyber crime police have registered 735 cases with no money recovered, although they have managed to freeze bank accounts in 10% of the cases.
To tackle the rise in stock market fraud, a special investigation team has been formed, as per the report. In February alone, there were an average of eight new cases registered each day, while also mentioning a total loss of Rs.88 crore from 237 cases.
The National Institute of Securities Markets (NISM) has labelled them Ponzi or get-rich-quick schemes that offer unreasonably or impossibly high returns.
More people are investing in stocks and mutual funds hoping to make more money. Most victims are around 30 years old and understand the market but still get scammed due to greed, according to additional joint commissioner of police Chandragupta.
In March the National Stock Exchange (NSE) warned investors about scammers pretending to be from well-known financial institutions and using fake certificates.
An officer said that in some cases, victims are lured to send money directly to the fraudster’s account. In many other cases, victims receive a link to apps, which are simulation (fake) apps of well-known stock trading apps.
