Colaba businessman loses ₹4.92 crore in share-trading scam

MUMBAI: A 56-year-old Colaba travel agency owner lost ₹4

MUMBAI: A 56-year-old Colaba travel agency owner lost ₹4.92 crore after falling for an online share-trading investment scam in which cyber criminals first allowed him to withdraw ₹2.97 lakh in purported profits to win his confidence, before blocking his access to his money, police said.

So convinced was the man that the investment platform was genuine that he even encouraged a 48-year-old staff member to invest through it. The employee ended up losing around ₹10 lakh, according to the police.

The complainant, who runs a tour operating and travel agency in Colaba, does not have experience in share-market investments, although he invests in SIPs and mutual funds.

According to the South Cyber police, the man came across an advertisement for stock trading while browsing social media on August 10. He filled out a form linked to the advertisement and was subsequently contacted by a woman who identified herself as Ananya Sharma.

Sharma allegedly claimed to represent a company that provided investment tips and added the man to a WhatsApp group. The complainant told police that the investment tips posted in the group appeared convincing and that members appeared to be making substantial returns.

On August 17, Sharma allegedly contacted him again and explained how to use a share-trading platform, urging him to begin investing immediately. He subsequently downloaded the application as instructed.

Each time the complainant selected the investment option, the application allegedly provided a bank account number into which he transferred money through RTGS or NEFT. The amounts appeared as investments on the application, with the portfolio showing profits, police said.

By September 27, the man had transferred around ₹4.92 crore through the platform.

Then came the bait that allegedly sealed his trust. On September 17, he requested a withdrawal of ₹2.97 lakh from the purported profits and received the money. Police suspect the payment was deliberately allowed to convince him that the platform and investments were genuine.

Flush with confidence, the complainant even asked his 48-year-old staff member to invest through the same platform. The employee subsequently put in around ₹10 lakh, police said.

The illusion began to unravel when the complainant tried to withdraw money again. His requests were repeatedly rejected. When he contacted Sharma, she allegedly told him that he had invested in IPOs and would have to put in more money before he could withdraw his funds.

That raised the alarm, following which the complainant approached the cyber helpline.

The complaint was subsequently transferred to the South Cyber police, who have registered a case of cheating, forgery and personation, along with relevant provisions of the Information Technology Act.