A 56-year-old travel agency owner in Mumbai has allegedly lost ₹4.92 crore after investing through an online platform that purportedly offered stock market trading opportunities. According to a report by The420.in, South Cyber police registered a case after the complainant reported that he could not withdraw his funds despite being shown apparent profits on the platform.
The case highlights how fraudulent investment schemes can use social media advertisements, messaging groups and fake portfolio displays to gain investors' confidence and encourage increasingly large transfers.
How the Alleged Online Investment Scam Began
According to the complaint described in the report, the businessman, who lives in Colaba and operates a travel agency, came across a stock trading advertisement on social media on August 10.
After submitting his contact details through an online form, he was allegedly contacted by a woman identifying herself as Ananya Sharma, who claimed to represent an investment advisory company.
The complainant was subsequently added to a WhatsApp group where members reportedly discussed investment opportunities and shared claims of substantial returns.
Although the businessman had previously invested in mutual funds and systematic investment plans, he reportedly had limited experience with direct stock market trading. The group's discussions and the apparent profits displayed by the platform allegedly encouraged him to participate.
How ₹4.92 Crore Was Allegedly Transferred
The report states that the woman contacted the businessman again on August 17 and guided him through an application presented as a share trading platform.
According to the complaint, the application provided bank account details for transferring money through banking channels such as RTGS and NEFT. Deposited amounts reportedly appeared in the user's portfolio, alongside displayed investment gains.
The businessman allegedly continued transferring money over the following weeks. By September 27, the total amount deposited had reportedly reached approximately ₹4.92 crore.
Investigators will need to establish the ownership of the receiving accounts, the movement of funds and the authenticity of the investment platform as part of the investigation.
Why an Initial Withdrawal May Have Created Confidence
According to the report, the businessman was able to withdraw approximately ₹2.97 lakh on September 17. Police reportedly suspect that the withdrawal may have been used to build trust and encourage further investment.
An initial successful withdrawal can make an unfamiliar platform appear credible. However, it does not independently establish that the underlying investments are genuine or that larger balances can be withdrawn.
The complainant reportedly became confident enough in the platform to recommend it to a 48-year-old employee of his travel agency. The employee allegedly invested through the same platform and lost approximately ₹10 lakh.
The circumstances surrounding both investments remain subject to the police investigation.
Withdrawal Restrictions Raised Suspicions
The alleged fraud came to light when the businessman attempted to withdraw additional funds and his requests were repeatedly rejected.
According to the complaint, the woman then claimed that his money had been invested in initial public offerings and that an additional payment was required before withdrawals could proceed.
Concerned by these demands, the businessman reportedly contacted the cybercrime helpline. The complaint was subsequently transferred to South Cyber police.
The report states that police registered a case involving allegations of cheating, forgery and personation, along with relevant provisions of the Information Technology Act.
The investigation will determine the identities of those involved, the destination of the transferred funds and whether other investors were affected.
How Investors Can Recognise Potential Trading Scams
Online investment fraud can involve misleading advertisements, unverified advisers, fabricated portfolio balances and pressure to transfer money into accounts controlled by unknown parties.
Investors can take several precautions:
- Verify intermediaries: Check the relevant registration and authorisation details through official regulatory channels before investing.
- Confirm the platform: Do not rely solely on an application's appearance, testimonials or WhatsApp group discussions.
- Check payment recipients: Verify whether the receiving account and payment arrangements are consistent with the claimed investment service.
- Treat extra withdrawal demands cautiously: Requests for additional deposits to release existing funds are a significant warning sign.
- Preserve evidence: Keep bank statements, transaction references, messages, screenshots and application details.
Businesses can also benefit from sound financial documentation and regular transaction reviews. Professional bookkeeping services in India can help businesses maintain organised records and improve the visibility of financial transactions.
The Mumbai case serves as a reminder that displayed investment profits are not proof of genuine returns. Investors should independently verify financial services before transferring substantial sums.